- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: What is the economic impact of dropping bags of cash?
Posted on 11/17/14 at 6:57 am to RogerTheShrubber
Posted on 11/17/14 at 6:57 am to RogerTheShrubber
quote:
If you're shifting from one sector of the economy, the only people who will believe it's a net positive will be those who benefit. Sure it's great to circulate money but if you're just moving it around, you aren't doing anything revolutionary.
Someone has to manufacture all of those big wheels and fancy cell phone covers...someone has to import them, warehouse them, retail them, build the infrastructure for all of that. It is supply side economics from the bottom up...and the only difference is where the infusion of cash is coming from.
Traditionally it comes from earners keeping more of their own money, bottom side up supply side gets the mooney from those earners and supplies it to the recipients. And that is the rub...and the thing that supply siders should just admit...it sucks to be taxed. It really is as simple as that...you don't have to come up with all sorts of convoluted and often wrong theories as to why it sucks...everyone knows it sucks, plain and simple.
Posted on 11/17/14 at 7:04 am to germandawg
quote:
And that is the rub...and the thing that supply siders should just admit...it sucks to be taxed. It really is as simple as that...you don't have to come up with all sorts of convoluted and often wrong theories as to why it sucks...everyone knows it sucks, plain and simple.
I'm searching for a point here, Dawg - surely you recognize that when taxation rises, the benefits of tax minimization schemes start to override actually engaging in the economic activity - the secondary benefactors - tax deferred investments (shelters) and tax specialists do better in that environment, but you won't get a proportional increase in the activity you want to tax.
Taxing exists largely for 2 purposes - 1 is to raise revenue and another is to punish behavior - much beyond the normal extraction rate (give or take 20%) creates a disincentive to further activity, in favor of these secondary actions. THAT is the point of the supply side theory - not only does it "suck to be taxed" as you so eloquently put it - it also generates diminishing or counter-productive economic returns to the taxing authority - unless the entire point is to depress the taxed activity.
Both of those parts are required to understand the supply side theory.
Popular
Back to top
Follow TigerDroppings for LSU Football News