03-02-2009, 12:26 AM
Eventually, taxes will be so high that it will shut down most trade . Taxes hurt the consumer, the seller, the manufacturer.
The black market will become robust.
Since all taxes are paid by the consumer in the end consumers will buy less. When consumers buy less, companies that make and sell products will sell less.
When companies sell less, they tend to employ less people.
When companies hire less people , less people are employed.
When less people are employed, less people have money to buy goods.
This is so simple.
When Taxes are lowered every one winds up with more wealth.
When everyone has more wealth they buy more stuff and more people are employed.
If the government keeps it's taxes low it actually raises more tax money to pay for roads, bridges, etc.
The black market will become robust.
Since all taxes are paid by the consumer in the end consumers will buy less. When consumers buy less, companies that make and sell products will sell less.
When companies sell less, they tend to employ less people.
When companies hire less people , less people are employed.
When less people are employed, less people have money to buy goods.
This is so simple.
When Taxes are lowered every one winds up with more wealth.
When everyone has more wealth they buy more stuff and more people are employed.
If the government keeps it's taxes low it actually raises more tax money to pay for roads, bridges, etc.