Wisdom from Miss O’Hara . . .
If I may quote:
Anyhow. Most Americans, being economic ignoramuses for whatever reason, usually jump up from their La-Z-Boy and cheer when they hear that taxes are being raised on some sort of money-making operation. Of course, they don’t realize that raising the tax rate on the corporation will inevitably mean job loss, lower investment in other area businesses, and a general shrinking of the local or even national economy – higher tax rates on anyone is a bad idea, regardless of reason. One can explain these things – or at least attempt to do so – to folks, but they blow you off and tell you that you don’t know what you’re talking about. You’d have better luck explaining quantum physics to a six-year-old.
And back to me . . .
This is sooooo true! Trust me. I love to spend money. Who doesn’t? (Well, Ebenezers, of course . . .) But for the most part, we are a nation of consumers. We consume, consume, consume. We consume food, we consume clothing, we consume gas, we consume vehicles, we consume houses, furniture, entertainment, on and on and on. WE CONSUME! And all those things that we consume have to be produced by people who are in the employ of ack! corporations. And when those corporations are taxed, they can’t afford to employ those people. (Which lends itself to the minimum wage equation as well — if I have to pay $6,000 to 5 people, when I’ve only budgeted $5,000 — well, I’m probably going to have to let one of those people go.)
Anyway, higher taxes slow down everyone’s consumption of products! I can’t buy as much as I might have before higher taxes. The corporations can’t employ as many people as they might have before higher taxes/minimum wages.
It’s not rocket science, is it?