Quote:
Originally Posted by Sangetsu
MMM, as a home owner in America I paid very little income tax. My single income came just below the "wealthy" $80k limit. After deductions for mortgage interest and such, the amount of tax I paid was very small.
Bush reduced my tax over what I paid when Clinton was in charge. The extra money I had each month allowed enough room in my budget to buy a nicer new car. It was a GM car, and the people of Detroit benefitted.
You cannot blame the federal government for the job losses in Detroit, you can blame the American people and the auto manufacturers for that. It was the people who demanded large SUVs which used so much gasoline, and the manufacturers who were ignorant enough not to develop more fuel-efficient cars.
Once again, taxes are one of the main forces causing businesses to close, or to outsource overseas. Bush's tax cuts helped the economy, but income tax is not the only tax out there. You have property tax, land use tax, utility tax (in some places, half of your phone bill consists of tax), gas tax, business specific tax, mandatory insurance requirements, various environmental impact taxes and fees, fines and assessments, vehicle licensing and registration fees, tolls, etc, etc, etc. 90% of these taxes are levied at the state and local level.
Can anyone give me a logical argument as to how any kind of tax rate increase will help anyone in America?
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I am not sure what you are responding to or what I said.
Being a homeowner in America doesn't mean you pay very little income tax.
The argument is, and Reagan tried to make it, too, is that if you tax the rich and corporations less, they will turn around and put that money back into America...basically the situation you described. It's called "trickle-down economics" and the reality is that it didn't trickle down that far.
The Bush tax breaks are living proof of it. McCain supports them, and look at the state of the American economy now.
But the essential key is beyond the tax hikes or cuts, and is how the money is allocated and used. Done responsibly, of course a tax increase on those making a lot of money ($225,000 or more, I believe) can be beneficial to the country as a whole. Done irresponsibly, it could lead to more havoc in the economy.
And this is a quote from Honda's President and CEO, Takeo Fukui:
“Contrary to what some executives are saying, there is more content from U.S. based suppliers in some of our vehicles than there is in many of the vehicles from Detroit.”