It started out with a simple question:
If cutting taxes was good for the economy, why were the Bush years lousy with a net loss of jobs, and the Clinton years, where he raised taxes, so wonderful to all income levels?
If cutting taxes is good for the economy, how can that be?
This goes against common sense, until you see the details. The republican argument is simple: if you cut taxes, businesses have money to invest and grow jobs.
Sounds good… but we tried it.. and lost jobs. WTF
The other side of the argument goes like this: when you raise corporate taxes, they have less money and invest less. If taxes squeeze out the profits entirely, they won’t bother to invest. The money will go to China.
Sounds good. really if I was going to lose money, I’d invest in China too…
Again, we tried it, and the economy mushroomed. Everybody made more money… The top one percent! The bottom 10 percent! All count the Clinton years as the best in their lives.
Now if I have a theory that sounds good but doesn’t work, like using leaches whenever I get sick, and I keep doing the same thing over and over, what does that make me?
So why this strange twist? Where what should work, doesn’t, and what should fail, becomes a thriving success?
The answer is in human nature. When you cut taxes, people have more money. Obviously they would want to receive the highest investment on that extra money possible. It goes overseas and creates not one new job. I invested overseas during the Bush years, often to 25-30 percent rates back… Really, why wouldn’t I?
When you raise taxes on corporate income, it pays to reinvest as much money as possible back into your business, so it does not get taxed. That money creates jobs, whether it is in your expanded R&D department, you new office building, or taking your employees out to eat, simply to keep Uncle Sam from taking that piece of your money..
Here’s the part that cracks me up. The Democrat plan causes domestic investment to soar, just what the Republican plan was supposed to do. The Democrat plan actually cause less tax to be paid per business, because they reinvest a lot of their profit; they report less income, they pay less tax.
So if you want to get the economy rolling, remove the Bush Tax cuts. Let them expire. As they do, it becomes imperative for each business hide some money back into their upkeep.