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10-28-2008, 04:53 PM #11
Senior Member
Obama Bombshell Redistribution of Wealth
"Lower taxes increase company productivity. Through increased productivity the company is able to generate more product that may be high in demand. Leading to a high amount of trade in volume. Allowing for more tax revenue to be generated."
- i can see how lower taxes increase company profitability but how do lower taxes increase productivity? generating more product does not increase demand - increased demand generates more product supply, even if a business has to borrow money to increase supply...if the demand is there, it will be met...nobody walks out of walmart empty handed because corporate taxes are too high
decreasing taxes can increase demand, especially among the lower and middle classes who spend almost all of their disposable income...obama claims that he will reduce those taxes...YAY! decreasing taxes to the rich doesn't increase demand because they can already buy everything they need, and they still have high savings rates...the trickle down tax cuts for the rich theory is dead
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