Radiance3 wrote:
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Straight, I have explained in details earlier the gross effects of tax increases.
You said it will increase government revenue. Yes, when raising tax, the tax revenue to the gov. increases.
However, this is what happened. With tax increase, that increases cost of operations, company net income is also reduced. For the company to be successful, the option is reduction of cost. And as a result many companies lay off employees to offset the cost on high tax.
Employees laid off do resort for unemployment insurance. That is covered for a short period of time, 6 months the most. That insurance is a small percent of their total salary. These laid off employee need to augment that income some other ways, maybe seek to welfare programs. Instead of being a contributor to the system, they become a burden.
In addition, when employees don't work, they also don't pay payroll taxes
those are the withheld IRS, SS Medicare, and unemployment insurance. Therefore revenue to the government is also reduced.
Some manufacturing companies when their tax is increased., they move to foreign countries, where cost of operation is cheaper. Therefore we lost the taxable income of that company, and at the same time employees are laid off. It increases unemployment. Therefore taxes paid by these employees are lost.
You see there are several cycles of negative activities affected when tax is increased. With higher unemployment, government revenue also shrinks.
I won't detail everything since I have already posted so much of these justifications on the earlier pages.
I hope it is clear to you now.
================== br i Straight, I have explain... (
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nice think tank crap when the tax rate was 78% they did not move out of the country that when the middle class was the strongest.You fail to realized it's been a war on the middle since Reagan. trump tax cut still had insented to move out of our country.You enablers are the problem.