The dual effect of high growth creating higher income that's taxed by government at all levels, combined with lessening demands placed on government that occurs during economic prosperity, is a worthy objective.
Sentiment: POSITIVE
A properly designed tax system can strike a balance between helping the poor and, at the same time, giving people the incentive to work.
Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.
The basic idea that if you increase government spending or you cut people's taxes that stimulates the economy and lowers the unemployment rate, is a very widely accepted idea. It's in every economics textbook, that's what we teach our undergraduates, and I certainly try to teach them the truth.
I can't imagine an argument that says that raising marginal tax rates on high income people, many of whom are business owners, is a recipe for economic growth.
Government should concentrate on building up infrastructure and skill development. Simplification of taxation is another important area.
It was an absurd theory that by cutting taxes you would increase government revenues, because the growth of the economy would create an overflow of taxes that would fall into the government coffers.
When you reduce taxes on higher earners it's vital to be reducing them on lower earning people as well so the nation shares in the approach.
All the measures of the Government are directed to the purpose of making the rich richer and the poor poorer.
I believe that all the measures of the Government are directed to the purpose of making the rich richer and the poor poorer.
Reducing the tax burden is necessary to produce economic growth.