Originally Posted by Nu3gaWhat
Raising taxes would be counter productive. There would only be a marginal increase in revenue, nothing compared to the spending, while everyone goes on the defensive to keep their business afloat and keep whats rightfully theirs. It would negatively impact workers and the economy.
You can already see how bad Obama care is impacting workers.
Regardless, I hope they do nothing while this administrations in office, maybe the next as well. I'm convinced that anything they do is not in our best interest nor could it possibly make things better.
You're looking at something called the Laffer Curve. Democrats, particularly Keynesian democrats (e.g. Paul Krugman) tell you that the Laffer Curve is false, but they've already been proven wrong.
France never got the memo about the Laffer Curve (or they just ignored it as Krugman suggests,) and after they added new taxes and raised existing laws, people simply found ways to avoid them, which usually came in the form of leaving the country and taking their businesses with them. There was one particular tax measure that France intended to raise I think 75 billion euros in revenue, and ended up costing them 112 billion euros as well as numerous high paying jobs from companies that relocated to Belgium, England, the US, and/or Canada. Basically it cost their economy a ton of money as well as future income, but the politicians touted it as a success because it made things more "fair".
The left often tell you that the rich threaten to leave but never actually do so. Well, that is false. It does happen, and is happening right now. In fact, the IRS just released a big list of people who renounced their citizenship in order to avoid future taxation.
And no, they didn't steal government services, and they aren't the supposed "parasites" that several politicians paint them to be. When you renounce your citizenship, you have to pay capital gains taxes on every single thing you own as if you had just sold it at the time of your expatriation. Basically it costs money to leave the US for good. The intent however is that you save money on future taxes by no longer having to pay a government that you have nothing to do with at all, and therefore there is no sense in paying them any taxes for services you don't even use. If you don't pay the expatriation tax, you'll get extradited back to the US and put in jail because the US has treaties with over a hundred different nations that require extradition for tax evasion.