Taxation

The Author is going to attempt an Essay, as he has been off-line for a few days, not keeping up with his reading.

Economists, Business Interests, and the Conservative Right(drifting into the Fascist Neocons) all believe Taxation remains the labor of the Devil. They maintain Taxes drag down the Economy, retard Business investment, and creates huge Accounting Costs for American industry. Taxes stand condemned for Unemployment, loss of Business profits, and when funding Welfare transfers--tantamount to killing Business incentive. They, on the other hand, stand first and foremost in the line to gain patronage by way of Government supply contracts. They finish by saying that Taxes, if they must be paid, should be paid by Consumption--not Income or Business Profits.

Study of the American economy will state that Taxes, especially Business taxes, are relatively low currently(in terms of real percentage rates paid). The American economy fought WWII with much higher real percentage rates of taxation. The wild growth of the 1950s-60s had much higher real percentage rates of taxation. Even the Reagan Years held a much higher real percentage rate of taxation. The Boom of the 1990s can even be seen, at least by this Author, as finding origin in a shift of taxation from Consumers to Business profits in real percentage rate terms. Propaganda relies on the fact that if you tell a Lie often enough, People will begin to believe it, even knowing it is wrong. There is no evidence that simple Taxes, as contratemps excess-charge taxation, causes economic imparment. The American economy between 1940-2001 belies such economic dogma.

There exists ample evidence that Government deficits, Current Accounts deficits, and Trade deficits all cause economic imparment. Government deficits can be elimated by a real percentage rate of taxation--without economic injury. Current Accounts and Trade deficits can be vastly reduced or eliminated by a effective real percentage rate of taxation. Taxes actually cures a vast array of economic adverse effects.

Consumption taxes are extremely regressive with adverse economic effects(refer to previous Post). Tariffs get a bad rap, and serve to control Production patterns which can be adverse to an economy(again Previous Post). Income Taxes, when properly set, provide an equitable method of tax payment. Business taxes do not impede Investment(Capital accumulation comes from a central banking system plus financial instruments), provide the best curb to Inflation(better than Fed rates), and take pressure from Consumers--who propel the Economy. lgl