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Amen and thank you. Economists at orgnizations like Citizens for Tax Justice (www.ctj.org) and the Center for Economic and Policy Research (www.cepr.net) and others still find from modern studies that businesses and investors do NOT make decisions about hiring and increased productions based on tax levels.
THE 62% TOP TAX RATE - this excellent read puts things in perspective. In the 1980's American's became one of the lowest taxed nations in the world - sadly, we are now one of the highest taxed nations in the world. Here are the facts: http://online.wsj.com/article/SB10001424052702304066504576343611464445594.html
Why do we keep accepting as gospel the idea that the more money that's spent on education within in the state, the better the economic climate will be? Is there a direct correlation between university administrators' salaries and the unemployment rate? Comparing the ratio of state funding to the university with tuition doesn't take into account the fact that tuition has skyrocketed in the last decades. Of course the ratio will change under those circumstances.
Attempting to justify the theft of wealth through taxes by saying that this redistribution is a general economic positive is not only disingenuous, it's morally wrong.
we tax cigerettes because it reduces smoking, i.e., society gets less cigerettes. That is a pillar of econmoics: whatever we tax we get less of. Why then would we tax income? Why would we want less income? The report from the 1950's correctly suggested taxing consumption instead of income, we would get less consumption and more wrok. That's the way to roll! Also you lefties say businesses dont consider taxes, but every CEO on CNBC says they do. Check out Deere's CEO letter to Gov Quinn of IL. Tax rates matter to leaders.
leg620 - "Comparing the ratio of state funding to the university with tuition doesn't take into account the fact that tuition has skyrocketed in the last decades."
You don't think that tuition has increased because State funding has decreased perhaps? To answer your correlation question, my son was accepted at every University he applied to, including the $U. He's going to Wisconsin, at much lower cost than Minnesota. Where do you think he's most likely to stay after graduation? States need educated workers. The cost of a University degree increasingly will determine where students are educated, and where they are likely to stay and work.
olsonb5 says if we tax consumption, we could get less consumption and more work. Where do you think work comes from? In the U.S. the bulk of our economy, like it or not, comes from consumption. The recession was largely caused by consumers stopping their consumption.
If you are going to compare spending on higher education then to now, you need to take into account several major differences. Back then Mn did not have technical colleges or vocational schools. Back then, there was no MNSCU and St. Cloud State, now the largest school in MNSCU, did not exist. Normandale community college did not exist, and on and on... The level of spending on post-secondary education in MN does not compare to now. Therefore, trying to say that increased spending on post-secondary education will result in a certain level of economic activity based on a 60 year old study, is not relavent.
I realize the main point of the article is the effect of higher income taxes on economic activity, but one of the main outcomes of the old study was that spending the increased taxes on higher education resulted in a better econmomy. I don't doubt the study then, but you can't apply the same argument to today's situation.
If we increase slaes taxes we get less consumption, if we lower income taxes we get more work. Your facination with consumption and "govt investment" has led us to record debt and deficits. You dont solve a spending additcion by spending more. We need to spend less, work more and save/invest. Thats what the Chineese are doing enmasse.
Dear aklemz: The recession was caused by poeple buying too much house (over consumption) and not working enough to pay for their McMansions. work more consume less- that's the motto!
Economists are like weathermen. Worthless. If looking for creating a budget leave them out. Look at prior times and decide what has worked. We have had federal tax cuts for 12 years and according to economists who believe this creates jobs appears false. NAFTA appears false. Good article but goes against the thinking of the no tax tea baggers.
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