Friday, September 10, 2010

Tax Policy and Government Funding

 

Why Some States Gain and Others Decline:  In a comparison between states with growth, Florida, Texas and Arizona versus states which have shown decline, Illinois, Michigan and Ohio some common reasons present themselves. The most common of those reasons are best summed up in the following quote from the article, “generally speaking, states that spend less, especially on income transfer programs, and states that tax less, particularly on productive activities such as working or investing, experience higher growth rates than states that tax and spend more." Read More at:  http://online.wsj.com/article/SB122126282034130461.html?mod=opinion_main_commentaries

Confiscatory Taxation Policy of Government (the rights and policies of the government to take from you what you have earned and is rightfully yours and spend it on your behalf)

Individual Taxation:  Money I make belongs to me and my family and I want to spend it the way I choose. With some very small exceptions, which is to support the military and the security of our country.  I don’t want a bunch of politicians spending it for me. Those who need charity need to appeal to charity and not look at it as their right to steal money from my family to support theirs.

Tax cuts, not tax hikes, have increased government revenue yet fiscal deficits have increased.  It is not the fault of tax cuts but rather the undisciplined wild-eyed spending of politicians who can't get enough of your money who continue to be the problem. 

Business Taxation:  Taxes and regulations force companies to take their jobs out of the country because they cannot maximize shareholder return by doing the jobs in the U.S.A.  These are not American’s jobs, they are the jobs of the companies/shareholders who invest in the companies and based on the return they provide is why they invest in them. If the returns from these companies diminish then the investors will take their money elsewhere and these companies will go out of business, resulting in lost jobs in the same manner as when they take them out of the country. 

Companies are in business to provide a financial return to their investors, not to create jobs. They create jobs because these jobs can produce more of a financial return to the investor than the costs they pay in wages and benefits.

Reduced spending and fiscal discipline, not tax hikes, are what are needed to gain control over our country's debit.  Since government revenues have gone up with past cuts, due to increased economic activity, it seems very short sighted of those who wish to tax ourselves into prosperity.

The tax on capital gains directly affects investment decisions as well as the availability of risk capital . . . the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy." As Fed Chairman Ben Bernanke told Congress when he was chairman of the president's Council of Economic Advisers, the capital-gains and dividend tax-rate cuts provided incentives for businesses to expand their capital investments.

 

 

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