Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Interesting comment by laughingriverin my dKos thread:

the reality is that what is needed is significant tax increases on high income earners and businesses in general.

Taxes act as an incentive for business to invest in labor and growth because what they don't pay out for either in any given year they will have to pay in taxes. So if a company has to pay 50% on a 50 million profit then its better for them to invest that profit in rewarding their employees and or investment in expansion, etc. And of course the revenue the government receives by taking a higher share of the money supply just forces more money to stay here to  be recycled into the economy rather than sitting in non-contributing money pools which is where most of it is sitting now as more and more income is controled by fewer and fewer people as is the total wealth.

Right now its much less risky for a businesses and individuals to just dump money into the markets and take the 15% capital gains tax as its less that income taxes and its far far less risky than investing in new manufacturing plants, employees, expansion of even starting up a new business.

Raise taxes and all of that goes away as individuals and businesses will once again have incentive to invest in America and Ameicans again...

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Thu Apr 6th, 2006 at 03:28:14 PM EST

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