May 21, 2013
My Thought For Today - Common Sense & Taxes
Pls share- It's Common Sense these laws of economics: The more something costs, the less of it you get or is sold. Less expensive cars generally outsell more expense cars - More Fords/less Porsches. That applies to all things: drapes, food, JOBS & INCOME.
The higher the cost to hire, i.e. excessive workers comp costs, generally the less hiring is done.
The higher the costs of income or being in business, i.e. the higher the cost of a permit, or regulation, or education degree, generally the less of it you get. There are more waiters than doctors in part because becoming a doctor is so costly by comparison. THE SAME APPLIES TO TAXES.
Taxes, including income taxes, is a cost of earning income. If you tax something to high, you get less of it. If you tax jeans $500 per jean, you get less jean sales because you have made buying jeans too costly and less attractive to buy and/or create an underground market for them.
If you tax income too much, you destroy the incentive to make income and so you get less of it or drive it underground, i.e. induce a barter system.
To spur sales, every day businesses lower the cost of their product to you, put something on sale, to make their product more attractive to you. Raising prices, generally reduces sales over time.
If you put income on sale, i.e. lower taxes, the same applies. That's why after every major income tax rate decrease in our history, the 20s, 60s, 80s, 2003, income has risen. If you raise tax rates, you reduce income over time.
Romney wants to put income on sale, give you incentives. He understands common sense. Obama, through Obamcare, tax hikes, regulations, etc., wants to raise the costs of income.
What choice will you make?
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Tom Del Beccaro
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