Reply #30: Ron Paul's tax policies are a lot better than anyone else's in DC [View All]

[IndyPragmatist]

What are the other options

A) Massive tax breaks for the rich, with huge deficit spending, and a general policy that will keep the poor where they are.

B) Massive tax increases for the rich, increases on corporations, with huge deficit spending, and a general policy that will force jobs out of the country.

A sales tax is not regressive. Unless you think that the rich don't spend their money? I guess the $50,000 Lexus sitting outside of my apartment window right now was free. Businesses pass their taxes on to the consumer no matter what. Increasing the corporate tax rate will cause prices to jump drastically. We can get more revenue by taxing personal income more from the wealthy, because corporate taxes will just be paid by the consumer. A sales tax allows the tax burden to come out at the final stage of a market. Which means that costs of production will be as low as possible, and will ultimately make the total cost of a good with a high sales tax to be LOWER than a good with a normal sales tax that was taxed heavily during the many stages of production.

We are in a global economy, tax policies from 50 years ago don't make sense anymore. You can easily do business in most markets from anywhere in the world. This is why labor is outsourced. It is impossible to prevent it. But a prudent tax policy would provide conditions that would help keep jobs here, instead of forcing them to places where the costs of production are much lower.

And big corporations are nothing more than individuals who pool their money together to make as much profit as possible. Taxing individuals instead of corporations will keep the businesses in America. The individuals who are benefiting from the profits of a corporation will pay higher personal income taxes.

If we keep taxing big business, they will adjust to ensure they make their profit. One of the most common options is to cut labor that provides the least to the company. These are almost always the middle and lower class laborers. We can still get the tax revenue created by big businesses, but if we take it immediately from the business we will just hurt the middle and lower class. Taking it from an individual will just mean that instead of a 2 week trip to a 5* hotel in the south of France, that person may have to spend a week in Hawaii.

If anyone read all of that, I commend you. I rarely have the motivation to read posts this long. Ron Paul understand economics. He seems to be one of the few that are looking into changes to adapt to the modern world. Whereas most Dems and Reps are fighting over which tax policy from the past is best. We need to realize that the world is changing, and we must adapt or we will continue our decline into mediocrity.