View Single Post
Old 02-21-2011, 01:08 PM   #84
Jim in CT
Registered User
 
Join Date: Jul 2008
Posts: 20,428
Quote:
Originally Posted by RIROCKHOUND View Post
Fair enough. I like politifact as a source.

So, for this year, it doesn't matter.

Next year, if and when the Gov proposes another 185mil in teacher/police/fire cuts, then the point might be valid.
But isn't there at least a possibility that those tax cuts will be stimulative? What I mean is, just because corporate tax rates are cut, does not mean that corporate tax dollars collected will decrease. If you cut the corporate tax rate by x%, but corporate profits grow by more than X%, then tax dollars collected will be higher, even though the rate is lower.

Put another way. If I own a Honda dealership, would I be correct in assuming that if I charge $1 zillion for a Honda Accord, I'll be rich? No, because I won't sell any. Because there is something called the "demand" curve, which despite what liberals hold so dear, is not a flat line. Demand moves inversely with price. I don't think liberals understand this, which is why they see no ramifications with perpetual tax increases. The problem with that is, like the guy charging $1 zillion for an Accord, eventually, you stifle demand...

Walker cuts the corporate tax rate, maybe some corporations move to Wisconsin from states with higher tax rates...
Jim in CT is offline