The higher the tax rate (the price of doing business), the less business will be done.  The greater the opportunity in business, the greater the opportunity for the poor.  When jobs are relatively scarce and hard to find, people will start to bid down their labor rates (pay) to at least have a job.  The simple supply and demand law of economics applies to labor as well. 
This leaves those less experienced and talented out of work or needing to drop their wages to keep their job.  When businesses are plentiful because of lower prices of doing business (tax rates), businesses need to bid up their job offers to attract the better talent.   A few percentage points of jobs available, creates much high pay for everyone and giving those with less talent and experience more opportunities. 
Congress once passed a tax thinking it would only effect the rich.  A large yacht tax was levied.  Many of the rich bought, serviced and lodged their yachts outside the taxing authority and within a very short time, many thousands of yacht related businesses closed or scaled back, thus significant job losses occurred.  
Picture
Blog coming soon
On a side note, the new tax brought in very little and overall taxes decreased due to all the businesses and employees losing their earnings, thus paying less income taxes.  YES, the poor were harmed the most.
Blog: The Poor are Harmed the most by the Effects of the Laffer Curve
While this example was clearly seen, most are not as evident, although they are still very real.  There are many businesses that have never been started because they could not get a loan. In many cases, they could not get a loan because of the excessiveness of the existing national debt.
Uncle Sam borrows so much that would otherwise be lent to start businesses. For many good reasons, the poor are on the bottom of the list to get loans to start businesses.  The more capital available, the further down that list has their businesses funded.   The poor are harmed most by greater government debt.  
 


Comments

02/11/2015 1:09am

i agree with your post that within a very short time the tax was repealed because the poor were harmed the most.you have given best conclusion through out this.thanks

Reply
04/10/2015 5:44am

I like your concept about metal as well as currency.According to me i think gold is good opportunity for investing money in market because the price of gold can be mostly change in market which gives the good result to us as compare to currency.

Reply
03/31/2016 2:55pm

I agrree with you taxes suckes I am aginst them totally I mean why do they created this system on the first place I cant understand :(

Reply
05/22/2016 5:54pm

All taxes and all increase in the taxation reforms are harming the poor and middle class segments. It is the critical and analytical segments of the right and brightness. It is the produced and induced with the seeds and all motives of the betterment.

Reply



Leave a Reply

    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.

    Archives

    August 2016
    July 2016
    May 2016
    November 2015
    September 2015
    February 2015
    July 2014
    May 2014
    April 2014
    March 2014
    January 2014
    September 2013

    Categories

    All