I've always been somebody who has held firmly onto the belief of lower tax's for the rich, and competitive Corporation tax.
Because the truth is, when you start levying massive taxes on the people in our economy that, as a relatively small demographic, provide the vast majority of jobs in the country, then we make them poorer, and that has a direct consequence, a more detrimental consequence on the middle and lower classes then if they themselves where to pay higher taxes.
It holds back the class that essentially lead the industries and create the industries in our country that is responsible for massive amounts of foreign trade, global competitiveness, employment and treasury income. Tax them more, they spend less. They spend less, our industries grow less. Our industries grow less, we have unemployment, and we loose our competitiveness. If that happens, we soon find ourselves staring down the blazing hole of a recession. And for what? An artificial sense of "social justice"?
Sure, taxing the rich a lot of money will reduce the deficit in the short term, but the long term effects on the potential of our industries to maximize on innovation and profit diminish. If that happens, they go abroad, and we may aswell just give handouts to everybody until we are left with nothing more than cobwebs in our safe banks.
But does trickle down economics really work?
The rich are constantly exploiting tax loop holes, sending the vast majority of their wealth beyond the reach of the government, consuming national resources and failing to pay their due share. Thus, do the under-taxed rich become a drain on national budgets and resources, as opposed to helping boost the economy?
Above all however, how can we be sure that Cutting the top tax rate will lead to income and wage growth?
There is no way we can stop people from sitting on their money, and if we cut taxes in the hopes of achieving something that ultimately does not materialize we end up poorer then what we where when we began. Hence, nor does it follow that we can always increase employment levels.
So are we better off distributing poverty? Like a "Trickle up poverty" theory of economics?
Or can we simply solve our problems by cutting taxes for the rich and increasing the minimum wage for employee's working at the richest corporations?