Sunday, February 10, 2013

Steve barking at a taxing idea

Everyone knows that the more you are taxed the more money is taken away from you.
Everyone knows that reducing taxes is a form of stimulus. (I hope that's understood).
Every one knows that the more a person is taxed the more they will make in the future. Oh no one knows that.
Lets assume that one is taxed to pay off government debt, I doubt that anyone would get more income.
Now lets take the idea that the taxes are given to person to help pay for um lets say medical care. Wouldn't the doctors have more money and wouldn't they spend it, creating more wealth for some one else. Let's say that part of that money is used by hospitals, who use it to buy equipment and pay their staff a higher salary.
Wouldn't the stock of the company go up, creating more wealth for those who have stock in those companies and lets say that those higher salaries allow members of the hospital staff to get better digs there by increasing the money that landlords make. Same is true if this money was used to build roads, buy computers, etc, etc. The computer companies, the construction companies and their workers would have more money with  the possibility (more like a probability) that a lot of people would have more money then before they were taxed.

Now I understand that many a person will not understand this abstract idea, kind of like those people who don't understand what a graduated tax is, and are looking for ways not to make more money thinking that their whole income would be taxed at the higher rate.

Now I have another strange idea, food stamps is a zero sum loss for our government. Think of all those process food companies that make money because of food stamps, the food stores and the farmers. Don't they make money on the food stamps that they would  not have made if not for food stamps? What about their workers who are paid and pay taxes and buy goods and services from others who intern pay taxes on their profits. Gee I know that what I just wrote is hard to understand, a person would have to think instead of react.

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