"Most people understand why taxing those who create jobs (generally upper-income people) will mean the creation of fewer jobs. Economists may argue about how many jobs will be destroyed for any given tax increase on job creators, but no one who understands the law of supply and demand will argue that there is no effect. Likewise, most people understand that a business that has to endure many expensive regulations will not have the funds to create as many new jobs or will be forced to increase prices for its products or services to cover the cost of the regulations. Higher prices mean fewer sales and, hence, fewer jobs. None of the above is rocket science, so most people "get it."
Current U.S. gross domestic product (GDP) is $15.6 trillion. If the economy grows at an average of 2 percent annually over the next eight years (in real dollars), GDP will be $18.3 trillion in 2020. (In reality, the economy has grown at an annual rate of about 2 percent since the end of the current recession in the spring of 2009, and now it is growing at less than 2 percent.) However, if the economy grows at an average rate of more than 4 percent, as it did from 1982 through 1989 under Ronald Reagan or from 1995 through 2000 under Bill Clinton), GDP will be about $21.4 trillion in 2020, or almost 20 percent larger in real terms than at a 2 percent growth rate."
Read more: RAHN: Tax-raisers lack compassion - Washington Times http://www.washingtontimes.com/news/2012/oct/15/tax-raisers-lack-compassion/print/#ixzz29asITWtr
Follow us: @washtimes on Twitter
There's nothing so hard about this formula - if it's more expensive to employ people, fewer people will be employed. You don't hire a lawn man because it costs "too much". What if you could get 10 hours of lawn work done for five dollars? You'd be hiring! It's too obvious. Thus, it makes one question the motives of those who are smart enough to see this simple truth, but behave as if it were not true.
Current U.S. gross domestic product (GDP) is $15.6 trillion. If the economy grows at an average of 2 percent annually over the next eight years (in real dollars), GDP will be $18.3 trillion in 2020. (In reality, the economy has grown at an annual rate of about 2 percent since the end of the current recession in the spring of 2009, and now it is growing at less than 2 percent.) However, if the economy grows at an average rate of more than 4 percent, as it did from 1982 through 1989 under Ronald Reagan or from 1995 through 2000 under Bill Clinton), GDP will be about $21.4 trillion in 2020, or almost 20 percent larger in real terms than at a 2 percent growth rate."
Read more: RAHN: Tax-raisers lack compassion - Washington Times http://www.washingtontimes.com/news/2012/oct/15/tax-raisers-lack-compassion/print/#ixzz29asITWtr
Follow us: @washtimes on Twitter
There's nothing so hard about this formula - if it's more expensive to employ people, fewer people will be employed. You don't hire a lawn man because it costs "too much". What if you could get 10 hours of lawn work done for five dollars? You'd be hiring! It's too obvious. Thus, it makes one question the motives of those who are smart enough to see this simple truth, but behave as if it were not true.
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