Quote Originally Posted by Monty3038
Good question.

Increasing taxes reduces incentive to keep your business here or to make money here. That in turn reduces the income here, which reduces tax revenue.

Reducing taxes encourages spending and investment in the country, thus increasing overall revenue by increasing the tax base.
Except that historical facts disagree. The biggest booming economy with the highest purchasing power from the middle class in history was during a time when taxes on the wealthy were much, much higher than now, and were possibly too high.

Even if you were right, you're neglecting all the huge negative impacts of reducing taxes too low. More importantly, too low on the rich. Correct tax policy has nothing to do with how it affects investment, but how it affects middle-class purchasing power. After all, investments are worthless without a middle class, and the stronger the middle class the better the investments.

The reign of Reaganomics in US has been what you say the solution is, yet it is doing absolutely nothing to benefit us now (as it never did). We're not lacking supply, but demand. This is the same as not lacking investment, but purchasing ability, and the same as not lacking wealthy people, but lacking middle class. We're not lacking in a small percentage of people with gigantic wealth, but in high enough wealth of the median income bracket to drive the economy.

Also, you don't seem to be cognizant of the actual situation here because taxes are not going up for anybody but the wealthy, and they're only going up 3% while that's still drastically low, and this isn't happening till like 2011.

You know, we got out of the Depression largely due to huge increases in taxes on the rich, and that's still not the best way to do it. All the tax revenue was necessary to create a strong middle class, but if FDR could have borrowed or printed enough then it was possibly the suboptimal approach, yet it still worked.