Rincon-newby
Southeast Ga.
Senior Member
Joined: 04/29/2006
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robrob25 wrote:Someone needs to pay more taxes if the middle class is to get some relief, and i think that big business can do this since they just had 8 years of relief.
The Flat tax is good in theory but i don't think anyone is positive that it would all pan out. One could also argue that it is socialist too since people in poverty would be paying 0%. I wouldn't say that though.
History has good answers for this argument, in that even with taxes cut across the board by Reagan in the early 80's, because of the substantial increase in the growth of the economy, the government actually had a substantial increase in revenue.
Higher taxes do not correlate to increased revenue for the government. When Herbert Hoover became president he inherited a growing recession and a concurrent lowering of revenue for the federal government. His plan of action was to raise taxes on businesses to make up the shortfall. It was exactly the wrong thing to do, because it raided the capital the businesses were using to keep afloat in the lean growing times. It exaserbated the recession and pushed it into the great depression. This is a little oversimplifying the situation, but true none the less. There were five areas of government action that caused the economic shutdown during the Hoover/FDR administrations. I will not go into it here, but Obama's economic plan follows the same actions previous tried and failed. I can only err to the side of an economic downturn to deepen with his plan.
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