Seven Reasons Why Tax Increases Are the Wrong Approach

This Economics 101 video from the Center for Freedom and Prosperity gives seven reasons why the political elite are wrong to push for more taxes. If allowed to succeed, the hopelessly misguided pushing to raise taxes would only worsen our fiscal mess while harming the economy.

The seven reasons provided by the video against this approach are as follows:

1) Tax increases are not needed;
2) Tax increases encourage more spending;
3) Tax increases harm economic performance;
4) Tax increases foment social discord;
5) Tax increases almost never raise as much revenue as projected;
6) Tax increases encourage more loopholes; and,
7) Tax increases undermine competitiveness

Category:

Nonprofits & Activism

Tags:

• taxes
• cfp
• cf&p
• freedom
• prosperity
• debt
• deficit
• spending
• government
• obama
• budget
• recession
• big
• quinlan
• mitchell

[TheCruel]

Too bad nobody in the government understands Econ 101.

[Diskatopia]

The ECON 101 reason to raise the taxes on the wealthy (ESPECIALLY since if one goes with the Laffer curve one can see we CLEARLY are FAR to the LEFT of the peak currently) is to raise them enough to incentivize DEDUCTIBLE business infrastructure investment, thus causing jobs creation. At higher tax rates the wealthy are incentivized to GET DEDUCTIBLE UTILITY out of the income rather than just pay in the money. This WIDENS the tax base ( jobs created) and increases revenue.

[bill3979]

Nice rack.

[Joe11Blue]

@JohannBBravo Those productive people would not be productive without the investment and credit extensions from the wealthy. It's a very symbiotic relationship. As a producer and investor myself I see how it works everyday.

[JohannBBravo]

@Joe11Blue I understand what you mean, but I disagree. Because it makes a huge difference when you're doing an activity which is productive or unproductive. And I mean it literally. Productive in the sense that you are producing something. EVERY investment is unproductive, but they're getting interest rates (equals unproductive income). When you want to follow me so fare it is exactly the other way around: productive people pay the wedges of the investors (over interest rates).

[Joe11Blue]

@JohannBBravo The problem with your argument is that it's flawed from the initial inception. The Wealthy do not hoard and stow away their wealth. It's all tied up in Investments. Those same Investments that are paying your wages.

[JohannBBravo]

2. taxes are not taxes: you point out the great success from RR... where are we now? You cannot make the connection in between the continuation of Regan's policy and crash of our system now? Don't you think, there is a connection in between the concentration of capital in a minority and this policy? Don't you think the concentration of capital is a problem, because it is out of the 'real economy', stuck in this superficial 'financial industry'? Oh, maybe 'Obamacare' did it :)

[JohannBBravo]

i cannot disagree with you more :) 1. the height of taxes on labor is a problem, but you paint a picture like this would be the major problem of the us economy! It's not the tax but the height of the wages which makes the US and Europe fall behind. But what's the alternative? Circumstances like in China?

[youjones]

I confess this hottie got me to watch the whole thing but it was a little hard to concentrate.

[DynamicUnreality]

You really need to do something about the sibilance on those S sounds, its like jabbing my eardrums every time she says the letter S. I had to turn down the high end of my EQ to even watch this.