Effect of tax increase on those earning more than $250,000
Consider that most everyone agrees that small business provide the majority of jobs. Some estimates are as high a 70%. New job creation has been represented in Small Business Publications at 95% of new jobs are created by small business.
Increasing the tax on those people who provide the jobs and enable millions of people to own homes, and spend money in the economy. If you increase the taxes on those people you then create a disincentive those people to grow their business. Or even start a small business to begin with.
Most of those jobs are not union jobs but are jobs people hold because of the freedom to be rewarded for their effort based on their value to the business.
Now if those jobs go away the only available jobs are with large corporation or government jobs. These are jobs that tend to be represented by unions.
So kill small business and it could be argue that unions with receive new membership because they are the only game in town.
In the 50's and 60's union jobs represented a larger proportion of employed workers, industries like steel, manufacturing were historically highly unionized. But over time those jobs were exported overseas when the cost of employment exceeded the ability to operate a business and return a profit to those who invest their savings for retirement. We see the results of this wit the pension liability to the auto industry that in America essentially collapsed and without government bailouts would have gone bankrupt. Aside from lost jobs, the default on the union negotiated pension benefits would have disappeared and shown the true cost to productivity that unions provide. Millions broke and an economy totally destroyed.
---
Phil Smith
"An unlimited power to tax involves, necessarily, a power to destroy; because there is a limit beyond which no institution and no property can bear taxation."
--John Marshall, McCullough v. Maryland, 1819
Increasing the tax on those people who provide the jobs and enable millions of people to own homes, and spend money in the economy. If you increase the taxes on those people you then create a disincentive those people to grow their business. Or even start a small business to begin with.
Most of those jobs are not union jobs but are jobs people hold because of the freedom to be rewarded for their effort based on their value to the business.
Now if those jobs go away the only available jobs are with large corporation or government jobs. These are jobs that tend to be represented by unions.
So kill small business and it could be argue that unions with receive new membership because they are the only game in town.
In the 50's and 60's union jobs represented a larger proportion of employed workers, industries like steel, manufacturing were historically highly unionized. But over time those jobs were exported overseas when the cost of employment exceeded the ability to operate a business and return a profit to those who invest their savings for retirement. We see the results of this wit the pension liability to the auto industry that in America essentially collapsed and without government bailouts would have gone bankrupt. Aside from lost jobs, the default on the union negotiated pension benefits would have disappeared and shown the true cost to productivity that unions provide. Millions broke and an economy totally destroyed.
---
Phil Smith
"An unlimited power to tax involves, necessarily, a power to destroy; because there is a limit beyond which no institution and no property can bear taxation."
--John Marshall, McCullough v. Maryland, 1819
posted by Phil Smith at
4:49 PM
0 Comments
