Does anyone think that higher taxes will increase private spending and lower prices?
I don’t think they will. Private corporations exist for one reason only: to make profit. They will pass on any costs, by spending less on payroll, and by raising prices, or else by cutting production, which will raise prices.
Businesses never fire based on higher costs? I am sure that it will come as a great comfort to the 16 million people out of work.
Tags: Anyone, Higher, Increase, Lower, Prices, Private, spending, taxes, Think
Comments (2)
The theory that tax cuts to the wealthy and corporations create jobs and that tax increases on the wealthy and corporations will lose jobs is a right wing myth. It sounds good as a political statement but has no basis in reality.
Businesses hire and fire based on demand for their products. A broad tax increase on the lower and middle classes would cost jobs indirectly but an increase on the wealthy and corporations would not.
You presume that customers will ignore higher prices and seem to think that higher taxes takes the money out of circulation. Customers are not concerned with private corporation profits and have their own agenda and limits to what they will pay. Money that is paid in taxes is used to pay for something different than what the taxpayer might have spent it on but it does not disappear.