High Taxes on the Rich are GOOD FOR a Consumer Economy

In a comment to the Gephardt Health Care piece below someone wrote something about Europe giving people health care helps their economy do well “despite” their high tax rates. That set me off. I wrote:

What do you mean Europeans do well “despite” their high taxation?

If you look at our history and compare tax rates with economic growth, you’re in for a surprise.

But maybe not a surprise, if you think about us as a consumer economy, and when the tax base is shifted upward the burden of supporting the government is less on the broad mass of consumers, so they are better able to support the consumer economy.

High taxes on the rich are GOOD FOR a consumer economy. Concentration of the wealth at the top is BAD FOR a consumer economy.

AND on top of that, the way they USE the tax dollars is better for the people there. Health care, pensions, etc.

After all, who is our economy FOR?

And one more thing. Taxes don’t “take money out of the economy.” That’s just focus-group crap that sounds good as long as you don’t start thinking for yourself. Taxes on the rich put money back into the economy. Here’s how: If you tax a rich person, and spend that tax money building a road, what you get is you employ a hundred people and you also get a road.

Maybe a better example is if you tax the rich and use the money build a solar power plant you employ a thousand people, get a source of renewable energy, stop importing so much damn oil from the Middle East, and also stop putting so much damn carbon into the atmosphere! (Tax the rich MORE and use LESS oil! If Bush or Cheney read THAT their heads would explode!)