DEMOCRATS ARE DUMMIES ON THE ECONOMY

Democrats still have not figured out that taxes are already too high in a time of high unemployment and slow business activity. Raising taxes now will destroy the moderate economic recovery we are just starting to see. They also don't seem to realize that lowering taxes will actually stimulate business, create opportunities for investors, and the creation of new businesses, resulting in actually greater revenue than if taxes were raised. In fact, raising taxes will probably result in lower total tax revenue than what is now available, as has historically been the case. To compound their error they still intend to raise taxes on people who make more than $200,000 and higher. The $200,000 income level is actually the level which corresponds to the typical small business operation in this country. Raising taxes on this group will have the following effects; (1) The typical small business will not hire any more workers and may even layoff a worker or two to make up for the loss in net income after taxes. Not because they are mean and nasty people, but because it is a matter of survival for the small business and the owners that derive there livelihood from that business. (2) The small business will reduce material and supply orders to a minimum. (3) The small business may raise prices of the products or services it supplies, passing on the tax increases to the consumer who then pays double-taxes in effect.

Also, larger businesses will reduce R&D, layoff workers, reduce inventory, raise prices, stop hiring, etc. Investors that provide the capital for business by investing in companies will look for other more profitable investments, usually in non-business activities, or protective investments such as commodities. The price of commodities then rises further hurting consumers so we could have very high inflation with high unemployment at the same time. Really rich people, that is millionaires and higher will cut staff, curtail luxury purchases, and cut back in various ways to compensate for the new taxes. These people did not get to be millionaires by ignoring taxes! It has been estimated that one new millionaire created will result in an average of ten new jobs such as maids, gardeners, assistants, and other jobs. The list and repercussions of higher taxes goes on and on. I almost hope the Democrats do raise taxes. It will almost certainly result in their political demise in 2012. If you disagree with me, write and tell why I am wrong!