Originally Posted by tonton
Over taxation of business is when businesses are deterred from being productive in a particular location because it's no longer of economic value to do so, as opposed to moving somewhere else. We're not even there anywhere in Europe, much less the US. US businesses can afford higher taxes, and that won't stop investment within the US.
Our regulatory and tax burden are precisely why we are losing jobs. Businesses are already over taxes. The proof is in the pudding, tonton.
Businesses are in business to make money. They're not all of the sudden going to stop trying to make money just because their taxes aren't going down.
Why in the world would
they? Lower taxes encourage more investment in the business. Businesses make more profits and create jobs with those profits. That's how it works.
They also prefer to do business where it's comfortable, and where the people involved in the business can have a secure, comfortable standard of living. Just because it's cheaper to do business in Vietnam doesn't mean businesses will suddenly move to Vietnam. Just because it's cheaper to live in Tijuana doesn't mean my parents will be moving their house from San Diego any time soon.
Unless the location is truly undesirable, business will move where they can succeed most. Period.
Too much tax reduction is when the government passes the point where there is a negative impact on revenue growth, and improvements on the livelihood of the middle and lower classes. It doesn't necessarily mean net revenue reduction, though it can.
Right, so we're close to that now, hmmm?
It means revenue would have grown more had the taxes not been further cut.
But you have no idea when that point is, and cannot show any example of it.
Likewise, just because revenue goes up, it doesn't mean that it might not have gone up even more in a period of growth or recovery absent the excessive tax cuts.
But you can't show that it WOULD. That's the entire point.
When revenue goes down (or goes up too little) to the point that you cannot afford to offer citizens reasonable government services, like universal health care,
Reasonable government services are defense, law and order, maintaining infrastructure and education. We go way, way, way beyond "reasonable" with our government spending.
part of every first world government around the world except one,
That doesn't make it right, or constitutional.
then you need to consider that maybe you need to look more closely at the variables in the equation.
Any more questions? Seems you have a lot to learn.
You're the one that actually believes that taxes aren't high enough, as if that's the problem.