Up Tax Burdens, Lose Jobs
Thursday, March 25th, 2010It’s not rocket science, but yet people don’t seem to understand that blindly raising taxes on corporations and the wealthiest among us isn’t actually a good solution. Think about it: the wealthiest people in the U.S. didn’t get that way by writing a lot of checks. Keep raising taxes on them, expecting them to bear the onerous burden of extra taxes to support unconstitutional reform bills and other political projects, and they’ll simply move their money around in ways which means its no longer accessible to the U.S. Though it’s hardly the case in all situations, usually the wealthiest among us are that way through their efforts and productivity. It makes little sense to me to say that those who are capable of producing more than their fair share of the productivity in this country should be punitively taxed for their efforts, but I tend to believe that one should be compensated properly for their efforts and contributions. For an interesting debate on the subject, read the debate on the Economist.
A similar argument holds true for corporations. You can’t just reach into your bag of tax tricks and throw a few more taxes at corporations and expect them to just bend over and take it. Corporations aren’t tied to a locale. If the tax burden becomes too much, they can relocate to states or countries where they can get a better deal. As technology advances, this will only become easier to accomplish. Want proof? Then just read this story.
I’m not saying that the wealthy and the corporations shouldn’t pay their share (using more logical tax policy, preferably), I’m simply saying we need to stop thinking with a victim’s mentality and expect others to take care of us just because they’re better off. The results may not be the rosy raking in of loose cash that people expect, and may actually end up with more people losing jobs and greater economic hardships for all.

