Please read the following and tell me what you think.
According to the Heritage Foundation, the consequences of ending the Bush tax cuts will include of the following over the next ten years:
New taxes raised: $277.81 billion
Jobs lost: 6,930,000
Income lost due to job losses: 6,930,000 x $47,000 (ave. wage per US job) = $327.69 billion
THUS: EACH DOLLAR IN NEW TAXES IS PROJECTED TO RESULT IN $1.18 IN LOST INCOME DUE TO THE RESULTANT LOSSES IN JOBS!
For a discussion of why taxes cause such a heavy loss of jobs, see "PAGES" on the right side of this page and click on "WHY TAXES COST JOBS"
The above numbers were taken from a highly credible report prepared by The Heritage Foundation--"Obama Tax Hikes: The Economic and Fiscal Effects" September 20, 2010. This report is available on their web site: heritage.org
This is such an important issue that I will continue to research it and provide updates as I uncover new evidence, pro or con. If you have any suggestions, please let me know.
If you were the government you would hopefully perform one more calculation. Amount of taxes lost due to lost income due to job losses due to tax increases. Right now we are in a vicious economic cycle that is spinning in the wrong direction.
ReplyDeleteThis very question has been well studied. The most well known and widely upheld study was done by Arthur Laffer (economic advisor to President Reagan) which resulted in the famous "Laffer Curve". Simply Google "Laffer Curve" and you will find it.
ReplyDelete