Here’s How to Fix the Economy!

Here’s How to Fix the Economy! by The Elephant's Child

November 7, 2010, 5:37 pm
Filed under: Capitalism, Economy, Freedom, Taxes | Tags: Creating Jobs in the Private Sector, The Free Market Solution, What Does Governemtn Do Well?

My most recent post which indicates why I believe the government should get out of the energy business, and the video that asks “Why Can’t Chuck Get His Business Off the Ground?” are just two of my frequent posts about my belief that government needs to keep out of the business of business.

If they want to rescue the economy and create jobs, they might start with eliminating (yes, eliminating! permanently) the corporate income tax.  Businesses don’t really pay a corporate income tax anyway, consumers do.

If the corporate income tax goes up, the cost of goods goes up.  If the corporate income tax is eliminated, the cost of goods goes down, they sell more, they have more business, and they soon need to hire more people.  The administration would fret about the foregone taxes, but increased business means more income for everyone.  You could even call it a “multiplier effect” if you wanted to — maybe then they’d go for it.

In that vein, there is a wonderful post at Maggie’s Farm, on a solution for the economy.  Don’t miss it.

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