Tuesday, September 9, 2008

They act suprised

Revenues are down after raising sales and income taxes? Really??

I wonder how that happened. Maybe, just maybe, everyone not on the tax more spend more Left was correct when they told you this would happen.

If you raise my taxes, I don't produce as much, because the incremental value of the additional production is reduced, often to the point that I choose not to produce. Likewise, increasing the sales tax increases my prices, subsequently affecting the supply and demand curves. So I buy less stuff, or I buy less expensive replacement stuff.

Maybe, just maybe, the way to get out of a fiscal problem is to quit spending so much on things that are wasteful or not in the government domain.

Over and over and over again we see these policies don't work, and over and over and over again we elect people who implement the same policies.

No comments: