Friday, February 6, 2009

Why tax credits?

You need tax breaks to; keep businesses in the state or country if the taxes make it difficult if not impossible to make a profit businesses will close or move, individuals need tax breaks both sales and income to have disposable income so they will spend money, the more they spend the more jobs they save and create. The economy can only be saved by the private sector creating more jobs. Taxes do nothing, the CCC set-up after the stock market crash in 1929 was failing it was only America's entry into WWII that pulled us out of that. What type of jobs can you create with taxes that will create real income to the state? To continue as a state you can not just tax your employees to get the money to pay them. Unless the state is going to start making, computers, beer, tires some sort of consumable to sell they need to do everything they can to encourage private sector businesses. If not they have to set up an ongoing business for profit. The government is not set up for that. What we need is government realignment so we do not need as many taxes as we have. Corporations need to do their part also which is be realistic about profits. A large part of this meltdown was caused by stock traders and CEOs not being satisfied with a 5-10% profit they want 25% or more. If they didn't get it the closed that plant or store, it might have been making a 10% profit but the greedy ones wanted 25% or better so they felt it was losing 15% closed it and took away jobs. Pure greed is what caused this, a greed never seen before. It would behoove these people who make millions doing nothing to remember that money is useless unless you can convert it into something pleasurable. If you do away with all the workers who's going to create electricity, make movies, booze what have you. All you end up with is a worthless pile of paper because there will be nothing to buy with it.

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