Tuesday, November 6, 2012
Taxes The fallacy of the Republican tax cut panacea
Posted by Max Brantley on Tue, Nov 6, 2012 at 8:39 AM
Ernie Dumas writes this week about the growing evidence that Republican dogma — that cutting taxes for rich people boosts the economy — doesn't work in theory or in practice.
We may be on the verge of getting a third example in Arkansas. If Republicans gain a majority and slash income tax receipts, it will certainly make the rich richer. But it will make government services — and employees and beneficiaries — much poorer. From Dumas:
The idea has always had a certain seductive charm, as long as you don’t think about it more than a minute. Then you have to ask yourself, does a business hire workers simply because the owner is going to keep more of his profits this year or next year and needs a place (the pockets of new employees) to park his new profits, or does it hire because the company needs more workers to meet a demand for more of its goods and services? Why, the latter of course. If there is no demand for more of your goods, no amount of tax savings will make you hire a new clerk or start a new
production line. Tax savings have absolutely nothing to do with it, unless taxes are so high that the owner would keep little or none of the extra profits from increased production. And that is not the case—not in the United
States, and certainly not in Arkansas. Even in the worst possible case, at current tax rates a businessman will keep two-thirds of his extra profits.
Speaking of Tax Cuts
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Fact: Speaker Davy Carter made it up as he went along
May 14, 2013The media's rapture with House Speaker Davy Carter continues. Latest is a gushing profile of Carter at the top of Talk Business' 10 Best Legislators list. /more/
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Legislature's 'wrong-headed' approach to tax cuts
April 19, 2013It's all over but the gold-counting for the Arkansas legislature's orgy of tax cuts for the rich and businesses. /more/
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What, me worry? Beebe to sign tax cuts
April 19, 2013Gov. Mike Beebe said today that he'd sign a raft of tax cut bills — heavily tilted toward the wealthy — that could reduce state income by $140 million or more in three years. /more/
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Morning report: Won't you go home Arkansas legislature?
April 19, 2013The Friday morning warmup: * THE RUSH TO ADJOURN: "Deliberative" is not a word that applies to the death rattle of the Arkansas legislature — not when the Senate rushes out, with virtually no debate, $150 million or so in tax cuts on everything from baling wire purchases to multi-million-dollar windfalls on unearned income for corporate capitalists. /more/
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Who'll be big winners in tax cut spree?
April 17, 2013If the Republican-majority Senate follows the Republican-majority House in expanding the Obamacare financed expansion of Medicaid today (I think they will), doors open on tax cuts for the well-to-do. /more/
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Chamber endorses 'private option' Medicaid plan
March 28, 2013This ought to cinch it. The masters of the universe have spoken: The Arkansas State Chamber of Commerce/Associated Industries of Arkansas has today announced its support for the “private option” healthcare coverage approach currently under discussion by members of the Arkansas General Assembly and the Governor’s office. /more/
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Expansion likely leads to feds paying for tax cuts in Arkansas
March 27, 2013In pushing for his tax cut yesterday, Rep. Charlie Collins mentioned the possible healthcare expansion deal. /more/
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Democrats find a populist issue?
March 27, 2013Is the Democratic Party finally coalescing around a message? It wouldn't be hard. /more/
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Speaking of tax cuts for the rich
March 21, 2013Rep. Charlie Collins is doing his part for the wealthy with state income tax relief. /more/
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Now come the tax cuts
March 21, 2013The legislature is close to rolling out the final outline of the tax cut parade. /more/
- More »
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