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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (623673)	8/9/2011 4:32:33 PM
From: TimF	Respond to of 1577024

You used the term "work harder". Different things in different cases, your talking about a huge number of people and organizations they will act differently. One of the more common responses is likely to be less hours spent working. Others will demand extra pay to make up for the higher tax cost, which can lead to lower employment, higher prices for goods and services, or some combination. encourage more tax avoidance (legally reducing your tax burden).... like Hedge Fund guys do when claiming their hundreds of millions are cap gains? If you like that so much, well you'll get a lot more of such activities as tax rates climb. What the hedge fund managers do doesn't really cost them anything, so the lower taxes paid is pure profit. Many other examples take money or effort or sometimes risk, so people don't do them as much with lower tax rates, but as rates climb the cost of the avoidance becomes a more and more sensible investment, as does the cost of lobbying for new tax breaks. The same applies to the risk of evasion. Take 10 percent and people usually take the other 90, take the 90 and people might risk penalties or even jail to pay nothing. In between you get larger and larger numbers of people who start taking the risk. and deference (pushing tax liability in to future years). That's been routine for everyone for decades, would be impossible to totally prevent except for the little guys... It happens much more at higher rates. Capital gains taxes provide the clearest example of this. Drop the rates and you get a lot of realized capital gains that you can tax. Increase the rates and revenue from the tax usually goes down. You still didn't say how not spending creates jobs? Less government spending means less government taxation and borrowing, which allows for more private spending and investment creating more jobs, and in particular more jobs producing something that people actually want and are willing to pay for. Government can pay people to dig holes and pay other people to fill them in, that (if you ignore the fact that the cost for the program comes from the private sector and taking it destroys other jobs) create jobs, but its a net loss to the country not a gain.