The Human Brain
New member
Actually increasing taxes can benefit the economy in quite a few ways, first it ultimately results in a lower inflation rate, second it allows funding of much needed public services...something people absolutely refuse to admit we need and the private sector will often not subsidize, for example building roaRAB, upkeep on government property and funding the states creates jobs, funding education creates economic opportunities...
Third, artificially low taxes on capital gains and the rich relatively punishes the middle class, the group largely responsible for the spending that fuels economic growth. Economic growth is largely demand side not supply side.
Latin America has become full of dirty socialist states flush with cash with booming economies and specifically booming middle classes which is driving unprecedented levels of growth in the region. It is in fact true that when taxation and government spending open up opportunity for the majority of the country instead of the top 1% and fraction therein the economy grows.
Third, artificially low taxes on capital gains and the rich relatively punishes the middle class, the group largely responsible for the spending that fuels economic growth. Economic growth is largely demand side not supply side.
Latin America has become full of dirty socialist states flush with cash with booming economies and specifically booming middle classes which is driving unprecedented levels of growth in the region. It is in fact true that when taxation and government spending open up opportunity for the majority of the country instead of the top 1% and fraction therein the economy grows.