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John

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I have an idea... [Apr. 5th, 2004|12:17 pm]
John
Let's eliminate taxes all together. This will make the economy grow so far and so fast that it will wipe out the deficit.

(Can you guess that I've heard too much talk about how Kerry "will raise taxes" as if that's automatically a bad thing, and how George Bush is in favor of cutting taxes, "because we'll make it up on volume" (essentially)?)

I've had some other things bugging me about the national economy as well.

"Worker productivity is way, way up". Doesn't that mean "companies are making lots of money with fewer employees"?

Doesn't this show, then, that trickle down economics - a game that is still being played - is a complete sham? (I mis-typed that as "shame"... go figure)

This all relates to when I was talking about how outsourcing saves money "which will mean more growth, which will mean more jobs" ("So why are those going to be US jobs?", essentially) There's something missing, and it's been missing for a while now.

There's a lot of national talk about how great the economy is for the consumer, and for businesses (which are growing, making more money, etc.), but very little talk about how good it is for the worker, and I'm starting to think there's a good reason for that.

Working from a pure capitalist perspective, without including any other motivating factor, there *is* no reason to care about the workers... unless there's a severe worker shortage. That "increase in productivity", well, that means there's less likelihood of a severe worker shortage in the near future.

I suppose part of this set of feelings came about from reading this:

http://www.msnbc.msn.com/id/4660655/

It notes something bothersome, and I think it could be a *great* campaign issue.

Bush, and his supporters, unsurprisingly, want to cut taxes on capital gains and inheritance, while retaining the income tax on salaries. The Republicans have long claimed that investment income is superior to salary income, because investment income "creates jobs and builds the economy".

This is the campaign issue that needs to be grabbed and seized.

"These people tell you that money that you earn by the sweat of your brow isn't as good as the money they earn by pouring their cash into lucrative investments! They say that you should lose *more* of *your* money, that you've earned with your own two hands, so that they can keep some of the money *they've* earned by sitting on their asses and worrying about their "investment risk"!"

Then, you can kill Bush's "Make my capital gains and inheritance tax cuts permanant or you're (always and permanantly, practically *genetically*) in favor of raising taxes", and help rally workers - not even 'union workers' - to your side.

Herm. I really need to get back to work, even though I had more ideas I wanted to chat about.
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Comments:
[User Picture]From: lblanchard
2004-04-05 08:10 pm (UTC)
Speaking as a small investor approaching retirement age:

I paid tax on my money once, thankyouverymuch. Now I think the government should piss off and let me do what I can to recoup with what they've left me.

Just another point of view here.
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[User Picture]From: johnpalmer
2004-04-06 03:20 am (UTC)
The trouble is, the government is not simply a wasteful bureaucracy that gets nothing done. If nothing else, it pays Presidential, Senatorial, and Representative salaries, benefits, and pensions. They need money for that, or else who will there be to complain about government waste and demand tax cuts?

Money has to come from *somewhere*. Choices will have to be made, sooner or later, and the notion that capital gains and investment income are somehow 'holier' than money earned by labor bugs me, especially in an economy that seems less and less likely to value labor.

A business that serves the consumer, serves the investors, and screws its workers is a nasty business... but I'm not even sure if that notion *can* be raised in the US political arena these days.
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[User Picture]From: lblanchard
2004-04-06 11:34 am (UTC)
We already pay 50% of our gross (not net) income in taxes to the city, state, and feds. That's on a five-figure income, by the way. That's part of the "privilege" of being a self-employed Philadelphian. So we're paying our share of these folks' salaries.

I resent having to pay a second tax on what my already-taxed money has earned me.

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