February 5, 2015

DON'T TAX WHAT YOU DO WANT:

Why wages aren't rising (Stephen Moore, 2/04/15, Washington Times)

[W]hen you raise the tax on investment, you get less investment. When businesses invest less, fewer workers are hired, and existing workers have less machinery, technology, computers and equipment to work with. This means they can't be as productive on the job and their wages stagnate.

Incomes rose in the 1980s and 1990s when investment taxes fell under Presidents Reagan and Clinton. Wages have stagnated under Mr. Obama as taxes have risen on capital.

The nearly flat growth in middle incomes is, in part, a result of the higher taxes on the rich.

A landmark study on this topic by economist Kevin Hassett of the American Enterprise Institute looked at business tax rates and wages around the world. He found that business taxes were inversely related to average wages. This is, in part, because capital flees from places where tax rates are rising.



Posted by at February 5, 2015 6:36 PM
  

blog comments powered by Disqus
« ANTI-VAX/ANTI-MORAL: | Main | HER ACHIEVEMENT WAS MUCH GREATER THAN THAT: »