Why isn't the simulas having an effect?

[Cool Beans]

The solution is simple, Ethics, Values, and Live within your means, whether a private citizen, business, city, state or country. If we can't afford it, we either find a way to live without it or less of it, or we utilize the wonder of Capitalism and make more money to pay for it. Increased taxes usually does not increase the revenue (usually decreases it). Makes about as much sense as charging your kids for meals and then having to increase their allowance to pay for it. The money slowly circles in an ever decreasing amount like a terd in the toilet.

PS. More government is just more terds spinning in that toilet.......

[spence]

Originally Posted by Cool Beans

Increased taxes usually does not increase the revenue (usually decreases it)...

This is perhaps one of the biggest urban myths ever pounded into our heads by conservative pundits.

Reagan certainly did cut tax rates and increased revenues, but a lot of this was restructuring of the tax code that spurred international investment here at home. A single event but a good example.

But most of the tax calculations used to prove this point don't factor in the growth in population or business cycles (i.e. bubbles) that have a huge impact on tax revenues. Clinton raised taxes and when you look at it per capita the revenues went up dramatically.

If cutting taxes always led to increased revenues then I'd say we should do away with them completely and enjoy the infinite revenues that would bring forth.

-spence

[Cool Beans]

Originally Posted by spence

Clinton raised taxes and when you look at it per capita the revenues went up dramatically.-spence

Until enough of the corporations got tired of it, and many moved offshore. If we make it too expensive to conduct business here in the US, big money will almost always find a cheaper place to conduct it. The big money that doesn't becomes not so big money.

Not saying reduce all taxes, mainly don't raise the taxes on business, especially small and medium sized ones. Leaving them alone, or reducing their taxes will allow them to prosper and thus hire more employees, pay more to their employees, and when the company is doing great because of individuals, give them a "bonus".

Trying to say a business owner making over 250k a year, should pay close to 40% of his profits to the government is ridiculous. Let him keep most of that and maybe he can expand and grow his business. It all equals more money for everyone, including the government as each new employee, new store, or bait shop, will all pay taxes.

just my thoughts.

[spence]

Originally Posted by Cool Beans

Until enough of the corporations got tired of it, and many moved offshore. If we make it too expensive to conduct business here in the US, big money will almost always find a cheaper place to conduct it.

But there are a lot of other factors that influence companies moving operations offshore. Manufacturing has looked towards labor often less than 10% of here in the USA, and also tried to move to Asia to shorten their supply chains. Many advanced jobs have moved offshrore to take advantage of a growing talent pool, or more recently, limitations in H1 Visas.

The point being, high corporate tax rates are not the showstopper here.

Not saying reduce all taxes, mainly don't raise the taxes on business, especially small and medium sized ones. Leaving them alone, or reducing their taxes will allow them to prosper and thus hire more employees, pay more to their employees, and when the company is doing great because of individuals, give them a "bonus".

This was the claim hammered home by McCain during the campaign, but the facts as I've seen them indicate the impact to small business under Obama's tax plan would be minimal.

That being said, I agree that small business is the foundation of our economy and shouldn't be taxed excessively.

-spence

[RIJIMMY]

Originally Posted by spence

This was the claim hammered home by McCain during the campaign, but the facts as I've seen them indicate the impact to small business under Obama's tax plan would be minimal.

-spence

Ahh, but you're only looking at the tax impact to the small business itself, what about the companies that do business with the small business? As their tax increases, they look for cheaper alternatives which potentially could drive business away.

[striperman36]

But it is also possible that a significant drop from here could carry to new bear market lows. As of now the rally that began on March 10 remains a Sub-Intermediate bear market rally.
I notice that a surprising number of people are becoming unsure of just what constitutes a bear market rally. It is the tendency to overcomplicate in the face of uncertainty. To put it simply, a bear market rally is any rally that takes place within the confines of a primary bear market. It is not a well-defined formula carried down the mountain by Moses. Such rallies can be especially dangerous because of their tendency to stimulate relief and false confidence.
The most destructive bear market rally topped in 1937. Investors had become confident and optimistic about the recovery from the bear market lows of the early 30s. The drop from the 1937 peak hit bottom about 2 ½ quarters later, having peeled off 46%. It became known as the 1937 crash, in which more astute investors were led to the gallows than had been slaughtered in the 1929 crash itself.
There is no reason to think this is what we face now, but the importance of the bounce rally has definitely led to a certain amount of euphoria. Although it may not be good for the blood pressure, it is often healthy to run a little scared.

[spence]

Originally Posted by RIJIMMY

Ahh, but you're only looking at the tax impact to the small business itself, what about the companies that do business with the small business? As their tax increases, they look for cheaper alternatives which potentially could drive business away.

As I said before, taxes are just one element of the equation. There are many other things that influence why business could be driven away. While our corporate tax rates are very high, the USA is also a very efficient and productive place to do business.

In the end if they can't innovate and be responsive they're not going to last anyway.

-spence