MedPuddle

July 27, 2011

Raising Taxes: Now or Ever?

Filed under: Politics and The Economy — DoNP @ 12:58 am

‎@All of you who think raising taxes is a good idea:

People who earn more than enough to pay their bills usually save and invest that money. Money that’s not handed to the big banks by Bernanke, is money that’s saved by those people and those businesses who earn a profit, usually AFTER they’ve paid their income taxes (albeit with loopholes). Taxing away a portion of these savings or profits will not hurt the individual taxpayer or company…their lifestyles won’t change at all. What does happen is that money will come directly out of the bank savings account, mutual funds (which are actually investments in business bonds or stocks) it will remove capital from venture funds that create companies and from private equity funds that promote the creative destruction (see Joseph Schumpeter) that our free enterprise system depends on for the constant upgrading and renewal of our business sector. Sure, wealth is being concentrated among fewer people and within fewer companies…that’s because the engine of commerce has been in reverse or at best in neutral since our boy Obama took office. Sure, he inherited a mess from Bush. But he’s done little if anything to promote small and medium size American business since he’s taken office.

Middle class America NEEDS a surge in small business to win the war against many things, the concentration of wealth, the lethargic jobs market and the exportation of jobs and wealth by our largest corporations. The only way to shift wealth is to take market share from the biggest companies who now have most of it. In the 90’s Apple had to borrowed $150 million to convince Microsoft to port Office 98 to Mac. Now Apple’s market cap exceeds Microsoft’s.

Do you have an idea for a better iPad? For a better, cleaner fuel, for a safer, faster car, bike, scooter or plane? Do you have an idea for a better search engine, social network or Facebook game? Need money to get that idea off the ground? Tax more and see how much more difficult it will be to get your idea moving. Have a small business but need to buy some new equipment to make you more competitive with the knock-off from China? It’s nearly impossible to get a loan now. Tax more and see how much easier it becomes.

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