We are about to see the Laffer Curve in action
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“… the price of her enormous tax raid would ultimately be paid by workers. This will manifest in not just lower pay rises and job cuts, but we can also expect firms to increase everyday prices to compensate.”
It’s what happens when there’s no political backbone to tax the wealthy. The workers, the poor, and elderly bear the burden, once more.
Tax wealth, not work.
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Governments need tio learn to live below their means like the rest of us.
Dodge the Taxman!
The Captain
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On that point, the USA is actually doing pretty good. The problem is that we are not taxing enough to cover those expenses.
The US govt expenditures as a % of GDP is 36% as of 2023. Compare that to other 1st world countries and we are below average:
https://www.imf.org/external/datamapper/exp@FPP/USA/FRA/JPN/GBR/SWE/ESP/ITA/ZAF/IND
UK is at 44%
France is at 57%
Spain 45%
Portugal 42%
Belgium 54%
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The article mentions the cost increase of National Health and an increase of the minimum wage, with the “burden primarily shouldered by employers”. These costs will be passed on, one presumes.
How else does the UK pay for an increase in the minimum wage or rising health costs?
DB2
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Waste and Fraud don’t matter?
The Captain
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The problem is that we may already be at ‘peak tax’
Sure it does. Get rid of that 8% and we are still not taxing enough.
$500B/$6016B
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Everybody hates the taxman, like dentists and lawyers, until they need their services. Streets, highways, police, schools, a standing army… we all know the story. They cost money. Therefore, we need taxes.
A healthy audit of government expenditures would be great. But politics prevents that in a constant battle, too often for personal gain and increasingly favoring the wealthy, not the greater good. So, the wealthy tilt the board entirely in their direction; and weaken government so they can get ever more rich and powerful, without restraint. Where does that leave the 99%?
They want to eliminate the IRS and income tax and privatize government assets, so they lose another source of revenue and run up debt. Ruining a government by loading it with debt and bleeding it dry of revenue will bring havoc to everyone, except maybe Putin or Xi.
We’ve got to preserve and improve what we have or the alternative will be very bleak for all of us.
It must be a genetic component to yearn for destruction, rapture, and end times. I’d rather build a better world and enjoy this life.
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Yup. As noted before, the previous Gov of Michigan, a “JC” himself, passed two rounds of "JC"tax cuts. How did he pay for them? Started taxing retiree’s pension benefits, which used to be exempt, raised taxes on the working poor, and cut funding that cities and counties use for public services.
Steve
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Completely false but writing sentences is so easy.
Notice there was zero proof in the article for those claims. Just more garbage piled on.
The wealthy in the UK called for higher taxes on themselves with the gilt market meltdown. The rich needed to tax themselves to pay themselves.
We are about to go there.
People who are really slow did not learn anything from what was going on in the UK 2022 or will not learn anything from US 2025.
They can be “raptured” at any time. So why do they delay doing it? What could be more profitable?
Sure. But those are boogeymen. There is not enough waste and fraud to make a dent (possible exception for certain military expenditures). But some people sure believe there is. Almost 80% of the budget is mandatory spending. And there is no way the remaining 20% is all or even mostly fraudulent and wasteful.
You want to solve the problem? You have to raise taxes on corporations, you have to raise taxes on wealthy, and you have to decrease military spend.
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Same old, same old, same old that has never worked.
Do the same old and expect a better result?
I doubt it. What I think is much better is to incentivise people to put their money to work. Tax the new revenue. Tax the larger economy.
The Captain
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America had its golden days back a few decades ago, when the corporations were taxed and the rich were taxed. It’s been downhill ever since Reagan started worshipping the rich.
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In the UK, the main corporate tax rate is 25% which is pretty much at the world average. The highest individual tax rate is 45% which is the same as France and Germany. As for military spending, that’s on the way up.
DB2
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Because, as we’ve seen over 40 years, trickle down doesn’t work. The wealthy buy assets and charge rent, raising the prices on everything, making it hard to produce new revenue when so much is going to pay rent. It’s a vicious cycle down.
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Captain that was pure nonsense. We have had supply side economics that is why it did not work.
The Germans had demand side economics with higher taxes and it worked.
We get to switch places.
The rich will be begging for higher taxes in month or two when the tax cut goes through. If you cant follow that why are you here?
No, they won’t. They will move elsewhere and let others make the profit in the US. They have no clue about how real business works. Sound familiar? Who is exclusively focused on taxes and ME !! ME !! ME !! ???
It has nothing to do with moving elsewhere.
They have the controlling interest in US treasuries which underpin their financial tools. They can not walk away.
They need to raise taxes on themselves to pay off the debt owed to them.
That is at the end of the day how the system works.
The current lack of comprehension of this fact is why we are being mismanaged.
While you are typing frantically…the rest of us do not have enough money or the means of production to pay them properly.
And yes the current management will not raise the taxes. The country will sit in a great depression.