Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (108082)	6/11/2001 2:57:55 PM
From: flatsville	Read Replies (1) \| Respond to of 436258

>>>It's obvious that your having a difficulty understanding how high tax rates create disincentives in the economy and how lower tax rates increase economic activity.<<< It's obvious you don't recognize how other tax treatments likely affect business activity to an even greater degree than individual rates tax rates for the rich...I haven't even gone into business related tax credits, R&D credits etc...not to mention direct government grants for R&D. These amounts can easily dwarf any marginal investment from the rich due to a tax rate deduction and IMO result in much more economic activity bang for the buck when properly targeted. >>>They have an eroding tax base because businesses and individuals have chosen to vote with their feet and move to a location with lower taxes.<<< I have found that taxes often go up in an urban area after the move to the suburbs was well underway for any combination of demographic, real estate price and logistical concerns. The move begins for reasons other than high taxes. Higher taxes is an effect not the cause of the mass move out of many urban areas. Cities are very good at whoring themselves to attract new businesses and allowing old ones to expand through tax abatements. Individual looking to rehab homes for personal occupation can even apply for these in some cases. Companies and individual still bail. Occasionally you'll find a city that has a head tax and/or an income tax which makes staying or locating even more unattractive. Again these kinds of taxes are usually adopted after the city tax base has already eroded.