Thursday, January 18, 2018

Tax Cuts and Prosperity

Arthur: What is his punishment for? Answer me!
Ganis: He defied our master, Marius. Most of the food we grow is sent out by sea to be sold. He asked that we keep a little more for ourselves, that's all.
--King Arthur

Current arguments against tax cuts, claiming that they do little to spur incomes or investment, are foolish. Taxes forcibly take production from people. Income is, by definition, an individual's rightful share of output generated by productive effort. When people keep more of their production, their incomes are higher. Simple math.

Investment comes only from production that has been set aside (a.k.a. 'saving'). When people keep more of their production due to tax cuts, then more resources are available for saving and, consequently, for investing. Again, simple math.

The plethora of announcements since the recent tax cut bill was signed into law--announcements of bonuses and raises for workers and of investments in plant, property, and equipment, merely demonstrate the obvious.

Stated differently, tax cuts advance prosperity. Only those who blindly worship the State would attempt to argue otherwise.

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