Friday, August 12, 2011

Republicans: with mechanized workforces, outsourcing, importing cheap goods; how does trickle down help us now?

It's really pretty simple. Let's say I currently pay $125,000 in income taxes (lots of people actually do pay that much) and I get a cut of $25,000. Do I go out in the backyard and bury the 25K? No, I either put it in the bank - making money available for the bank to loan to people for lots of reasons or invest it - making money available for a corporation to expand and hire people or buy municipal bonds - making it possible for local govts to build infrastructure or spend it on things I want/need. Maybe a new car, maybe a boat, maybe take a vacation, new clothes, go out to dinner more ofter, new furniture, etc, etc. You will note that all of these mean jobs for other people who make more money and pay more taxes. That is why lowering tax rates ALWAYS results in increased revenues for the govt.

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