Quote:
Originally Posted by 2MuchMark
Question for everyone about this new Tax bill:
With the new Tax bill, Corporations will pay less taxes, and regular people will pay more.
Regular people will have less money to spend. Won't this mean less money in the economy? And with tighter wallets, doesn't this mean even less interest in buying locally produced goods? And won't this force companies to outsource even more? And isn't there a tax incentive in the new bill that gives a credit to companies who outsource?
Why not:
- Increase taxes on corporations
- Increase taxes on the rich
- Remove write-offs for Personal Jet and Golf Club Owners
- Lower Taxes for the working class and middle class
- Give companies incentives to produce locally, hire locally
- Slap companies that outsource, and give incentives to companies to return to the US?
- Tax all imports, and provide incentive to buy local?
Wouldn't this
- Create more local Jobs?
- Put more money in the hands of the working and middle class?
- Encourage spending?
- Encourage sales of locally sourced goods?
- Make America great again?
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unfortunately economy does not work that easy. effects on a tax increase for corporations would lead the money into offshore. donīt forget that rich people can live wherever they want - poor people canīt afford that.
tax on imports to secure that people buy local would also not work. because first of all most imports are necessary for the local production and on top of that the big companies do not get big from the local market. the main part of the GNP is caused from EXPORTS.
if you tax imports from other countries they will do the same with the products you want to export. at the end of the day this will cause higher prices what have to be paid from the ordinary people.
if you replace the word "money" with "prosperity" you will get a complete other view because prosperity does not depend on how much money people have in their hands - it depends on HOW MUCH THEY CAN BUY with this money.
the one and only way to keep this value high and the costs low is to use the options of a global market. if everybody in this global market does what he can do best (and cheapest) it will lead to prosperity. if the largest share of the tax then only on consumption takes place then those who consume a lot will pay more taxes.
the problem will be than the money what is NOT spend.
and as soon you can make money with money (interest) the sum of the money will increase without a balanced productivity.
of course that is a vision and only possible when the whole planet would work with the same rules.
especially an economy as the US can not survive without the global markt - what means it can not be protected it has to compete.
trying to fix local problems by ignoring global realities can not work.
the problem of US is much deeper as in just taxes and trumpīs tax cut will not work as he is expecting it. the main problem is that the local market is limited and no smart company will invest the saved money into a market what is already short before overheating.
that means: this money will not go into the US economy but in markets what still have a chance to grow and those are OUTSIDE of USA.