Quote:
Originally Posted by afc wimbledon
Two points, when goverments contract in a contracting economy it has the effect of amplifieing the contraction, thus taking a recession into a depression.
The problem is not what goverments do during a recession, it is what they due during a boom, goverments, under a Keynsian system need to contract during periods of growth and then expand during recessions to slow the contracting effect.
Second point, I believe individuals and business are taxed seperatly therefore in increase on income tax should have no effect what so ever on business, it is also very simple to ensure this, that the tea party morons and their very smrt very rich shepherds don't call for this is a clear sign they don't care or believe tax increases for the over 250,000 will affect small businesses at all.
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First point- Has that been proved in history? The only depression I've read about appears to have been lengthened and deepened by high taxation and government spending. The only thing that righted that ship was a World War.
Second point- I've read and heard most small businesses in the States operates under their owners individual tax accounts. There must be some disadvantage to running your business through its own tax accounts.