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Politics : Right Wing Extremist Thread

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To: Neocon who wrote (13040)	7/25/2001 12:54:44 PM
From: TimF	Read Replies (3) of 59480

It is possible for income to be depressed due to the tax burden, to be sure, but it is not necessary. The fact that one would have a greater income with tax relief is misleading. It is rather like experiencing a deflation in the currency, where the buying power is increased, leading to a windfall. In the future, all it means is that raises will be adjusted downward, until a new equilibrium is reached. I disagree. One would have a greater income and it would not be inflationary. The money is spent by the government instead of being spent by me. Either can lead to inflationary pressures. You commented before that the market sets the rate for my labor but the market clearing rate will be lower when labor and income are taxed. Sure the rate is still determined by the market but the market result is different in response to the tax. The demand for the work I provide might be said to be X abscent taxes, and X-y if the company has to pay me enough so that my take home pay stays the same as it would be without taxes. And it is X-y-z if you include the lowered demand caused by taxes on my employer for hiring me. What is true is that if costs cannot be efficiently passed on, there will either be a marked depression of income or a loss of jobs. If the company just passes on the increase costs and pays me enough so that my nominal take home pay is just as much as it would be without the taxes, and everyone else also does this, then you have inflationary pressure and my real pay will be lower even if my nominal pay is not. My point is not the high taxes are no problem, but that moralizing about them in such terms as claiming "theft" is not analytically sound....... Its very sound. My wealth is taken by force or threat of force. Perhaps extortion would be a better term then theft and it may be extortion for a good cause or it may be termed necessary extortion but it is still extortion. Tim

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