Originally Posted by joe
No, I can't clearly see that. All I've seen is a bunch of statistics thrown out. Statistics don't prove anything definitively. I'm not anti-statistic, but statistics can only be used to buffer your argument, they can't be the entire basis of your argument. I can just as easily say all of those economies would have been doing EVEN BETTER with lower tax rates, and at that point it's just my word against yours. There's no substance to anything you posted. There's plenty of statistics that show the 19th century in America was the greatest century EVER in terms of improving the living standards of humans, and this occurred with a zero percent income tax and a gold standard! So are you going to change your position to be pro-gold standard now? According to the way you argue your case, you should.
Those are the quantifiable results of a comprehensive study done that covered about 70 years in this country in regards to top tax rate and its correlation to economic barometers. The findings clearly show that the times of highest growth, highest gdp, wealth parity, etc coincide with times of the highest top tax rate. These are facts. What you
posted, or rather didn't, lacks substance. I asked you to provide facts or anything that can back up the claim that lower taxes leads to a better economy. You gave me nothing, because there is nothing tangible to support that claim.
Please explain why raising taxes on the rich would improve the economy, without using any statistics. Explain why! Why does that make any sense? Why would taking money from some people who earned it, and then giving it to the government, create a better economy? Just explain how that makes any sense. Please. I'm not saying a good argument can't be made, but I haven't seen it yet in this thread.
With more tax revenue, the government can invest in more infrastructure projects which creates more jobs. The increased revenue could (and will) be used to help reduce the deficit. larger deficits coincide with high interest rates which can lead to inflation and lower consumer/investor confidence which in turn affects the stock market (a taste of what we saw on wall street in the days after the election, the fear of the country going over the fiscal cliff being one of the main catalysts of the decline). With a higher deficit, we have less national savings which decreases the funds we have to invest in new business. So having more tax revenue on hand (coupled with lower spending) would cut into the deficit, thereby reversing the damage caused to our economy as a whole in addition with providing national savings for investments.
Again, look at the facts- they tell the whole story. An in depth study on how increased taxes affects the economy:
RECENT STUDIES FIND RAISING TAXES ON HIGH-INCOME
HOUSEHOLDS WOULD NOT HARM THE ECONOMY:
Policy Should Be Included in Balanced Deficit-Reduction Effort