Thread: Economics "Soak the rich" is pure folly
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Old 07-08-2011, 09:03 PM   #20
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Quote:
Originally Posted by alnorth View Post
True enough. I'm just saying the equation has a few more variables than just "top tax rate greater than 35% = economic death".
The equation has 2 variables that matter...

X: Tax Revenues
Y: Tax $'s spent

When Y > X then we have a problem and you have two choices...

A Tax more
B Spend less

Every household in America deals with similar variables, just replace Tax $'s with income. and when a household continues to spend more than they have in income they go in debt and eventually go broke, file bankruptcy, etc.

This is why spending cuts have to take the front and center over tax hikes.
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