"High Taxes Don’t Drive Out the Rich, Study Says" - WSJ

[grahamhgreen]

From Murdoch's Wall Street Journal -

"A study by the Center on Budget and Policy Priorities, titled “Tax Flight is a Myth,” states that “the effects of tax increases on migration are, at most, small—so small that states that raise income taxes on the most affluent households can be assured of a substantial net gain in revenue.”" - http://blogs.wsj.com/wealth/2011/08/08/high-taxes-dont-drive-out-the-rich-study-says/



__________________

Another myth busted.

[CTyankee]

1. We need a study to tell us this?

We saw what happened in this country in the 50s. High taxes on the wealthy and corporations didn't stop them from making the automobiles, houses, TV sets, etc to employ a whole generation and ensure the strengthening of the middle class. We have only to look to history to give us this answer, very loud and clear...

[Sherman A1]

3. Agreed

However in the 1950's we had consumers with jobs and an enough income (mostly single income earners per family) to buy the goods produced hence the demand to support the economy. The wealthy simply do not drive enough demand to do so because there are not enough of them no matter how much money they collect (or more properly scam from the rest of us). The only answer to this current mess is more jobs for more people which will create more jobs for more people. Until that happens we are simply in a downward spiral to where ever the bottom may be.

[CTyankee]

10. Agreed. That's why I think John Kerry's Infrastructure Bank is our only hope right now.

If we combine that with a real push for Green Energy we'll have another boom. If not I agree that we're circling the bowl and getting flushed away...

[grahamhgreen]

11. Well said!

Of course, the R's have a running meme to the contrary!

[aValanche]

2. Well,

Isn't it true that 3% of the population holds 95% of this countries wealth? Really, what is the point of wringing that 5% dry? I mean, it doesnt even make sense.

[aquart]

4. No, shit, Sherlock.

They actually like the way high taxes keep out the riffraff.

[Starry Messenger]

5. k&r

[xchrom]

6. Recommend

[JohnnyRingo]

7. Only mentally disturbed CEOs would cut back to get in a lower bracket.

I can hear the boss now: "Tell our customers to go elsewhere, high taxes on our profits are forcing me to lay everyone off and halt production".

Supply side economics throw the entire concept of supply & demand out the window. Somehow it assumes that feeding business with breaks creates an unwarranted supply that then seeks a demand, instead of the other way around.

[jwhitesj]

9. +1

[JustAnotherGen]

8. Read it yesterday

I live that blog. If you go back and read comments on older posts of his - he really does a good job of snark towards the wealthy. Kind of says - you aren't all that. Now stop being so self important!