Raising taxes equals lost jobs (Update 2)

June 9, 11:22 AMPortland Civil Rights ExaminerDianna Cotter

This is a very simple concept.

One that California is now grappling with to the tune of a 24 Billion dollar budget shortfall, and is the perfect example. They raised taxes again and again to pay for Socialist programs, and now businesses have left the state, closed their doors and those “Rich” people who could have moved out. California can no longer pay for all of those people now dependent on the government for their income.

If you want an example of Socialism failing, just look at California. Its staring you right in the face. That state is now seriously contemplating cutting welfare and other similar programs completely. Down to zero. Those folks are going to be left high and dry by a system the came to depend on as opposed to depending on themselves for their own livings. And given the climate in California for starting a new business, it does not seem at all likely they will go out and create an income for themselves either.

California got to where it is based in a very very simple concept. Raise taxes on Businesses and Corporations and you increase their cost of doing business.

To remain competitive and not raise their prices, they must cut costs, usually in the form of jobs. This does two things, reduces the payroll taxes the business pays to the government reducing government income. It also puts a former employee onto Unemployment, thereby COSTING the government more, again reducing revenue. Its a double loss, with absolutely zero gain.

Anyone that says raising taxes is the answer is completely ignorant of this very simple and basic reality. Either because of deliberate manipulation of public ignorance, or because they stand to benefit from it personally, both of which are immoral.

Yes, this is also calling a spade a spade.

Now, go and raise taxes further, and a business will fire more employees. Or close its doors and fire all of its employees, or it will go out of state where it is cheaper to do business. Perhaps it will go out of the country as Microsoft just recently announced to the Federal Government if the Fed increases taxes again.

Let’s be very clear on this. If you want to pay for all of your socialist programs, you had better get out of the hole you are still digging with your higher taxes mantra. The only way you are going to be able to afford any of those programs is to go out and earn it. That is done by stimulating business, and making it cheap to run, and enabling new businesses to start. Create the atmosphere for business to HIRE people instead of encouraging them to FIRE them.

The only answer is to stop digging the hole of higher taxes. A very simple axiom that any 4 year old can understand is this: If you want to get out of a hole, stop digging it deeper, and get out of the hole. Then you start filling it back in.

Any questions? No? Good. Start cutting corporate taxes and watch government revenue go through the roof.

The increasing Unemployment Rate may, and it should be stressed, may be slowing. This only means that fewer people will lose their jobs, but there will still be hundreds of thousands of people losing them. It may be a step in the right direction, but the patient is still bleeding. If that bleeding is to stop, then the government must stop sawing off the limbs of the patient. There is absolutely no question that raising any taxes of any sort at this point in time will have a very negative effect on employment. Immediately you will see a great number more unemployed, and those already on the roles won't be able to find new work, because businesses won't be creating any new work.

If you want to increase Government revenues, increase the ability of business to do business, enable it to hire people and get them to work and start making a profit. That is the only way you can, with sustainability, increase Government revenue.

We as Americans have the civil right which includes the right to pursue our own happiness, onerous government taxation that drives businesses out of existence is a violation of that principle. Perhaps it is time for a new Amendment to the Constitution; with out a 2/3rd's ratification by the States through Convention, the Federal Government can not raise taxes. The same should be done for the State Governments. That will squarely put the power back into the hands of the people and force Government to only spend what it has on hand. Just like the average person must do in balancing a household budget.

Enough is enough, Government at all levels has gone too far. It is far past time we as Americans stood up to the lunacy that says to us, oh well the government will take care of you, we will just raise taxes on those still making money. That is a fallacy. What is true is just as Margaret Thatcher put it, "Socialism is great until you run out of someone else's money".

This Nation has run out of someone else's money.