Actually you have seen it...it's called recent history. In every single case where conservatives have attempted to cut taxes while at the same time increasing spending, it's caused a lack of revenue that ultimately brought on recession. Again, this is 100% of the time in the last 50 years. Each time this has happened, taxes were ultimately increased to raise revenue and the economy soared as a result. Economic stability creates confidence. Confidence ultimately generates spending.
Private sectors hoard profits, while government spends. It's spending that keeps our economy growing, not hoarding. The more cash that gets spread around, the better our economy works. This is exactly opposite of what we have now with 1% of the population hoarding 40% of all the wealth and keeping it amongst themselves. Nothing being's spread around and our economy is at a stand-still with only 1% that are truly prospering on the backs of everyone else. What's making the problem exponentially worse is much of that wealth is now being moved overseas. The ONLY way to force these hoarders to spend and circulate those profits here at home is through taxation.
GE made $14.2 billion in profits last year. What are they doing with $14.2 billion?
Exxon Mobil made $2.6 billion in profits in 2009.
Remember folks, this is PROFIT, after expense, after payroll, oozing dripping buring a hole in your pocket PROFIT. Profit that neither of these companies are paying a single penny of in Federal tax dollars. So what are they doing with this profit? Two things, paying it in dividends to a very small percentage of our population that can afford to buy their stock (hoarding), and expanding their businesses everywhere but here.
Capitalism only works if the money is spent at home. Key word. SPENT, not hoarded.
Originally Posted by F-Sharp
As I've stated, I most certainly don't hold myself out to be an expert on economics. Having said that, I feel it's a bit more complicated than you make it out to be. For instance, where do small businesses fit into your theory?
http://economics.about.com/od/income...porate_tax.htm
Of course the idea that GE or Apple or any of the Oil Companies, in other words Corporations that don't fall under the small business umbrella, should pay their fare share of taxes is one that I won't argue with.
Should U.S. jobs be going to China? Of course not! Yet Obama has done nothing to stem that flow. I personally stopped doing business with a company after it moved it's manufacturing to Vietnam. I'm much more vigilant now on checking where a product is made before I buy and I try to buy American when possible.
Nothing irritates me more when I call a customer support number for a large U.S. Corporation only to talk to someone in a call center located in India. As if we don't have thousands of Americans in this country that would be happy to fulfill that job.
Yet, I also know the downside to unions that you seem to hold in such high esteem. Having worked a job that required me to fly commercial every single day, 5 days a week averaging 2-4 flights per day, I got to see up close and personal what the Flight Attendants Union had accomplished. At one point, many flight attendants could literally work one week per month and still make $60,000+ per year. You can look at the Steel Workers Union or the Auto workers unions and see what an impact they had.
Can this lead to Corporations looking to move their operations overseas where labor is cheaper? Of course it can. Do I believe that workers should be exploited? No but the fact is, we have a problem in this country not being able to find a reasonable middle ground. Corporations want more profits, workers want higher wages, even when those wages and working conditions oftentimes are far beyond what the average American with a comparable education level would have.
So at times unions can be their own worst enemy. I've been part of an "association" here in Texas and saw this first hand when we would enter in negotiations on behalf of our membership. Nothing was ever good enough even when our pay and benefits far exceeded the majority of workers in this state with the same job.
Just ONCE I'd like to see the President of the United States speak honestly and openly to the public. When you stand behind that podium blasting greedy Corporations, how about addressing greedy unions as well. You'll never see that out of this President.
