Should There Be A Tax Cut?

I receive an interesting email from a constituent. "Please vote against this bill for tax cuts for the people called wealthy. If passed, this bill forces the schools to promote levies.; The burden falls squarely on the property owner. But the money slides nicely into the governor's pocket and his cronies. Its all smoke and mirrors."

My response which I would like to share with you.

"Government does not pay taxes. Only those that work and produce pay taxes. There are two ways to increase tax revenue. One way to increase revenues is to increase tax rates. This method can slow the economy and actually cause tax revenues to fall. I believe that tax rates are so high that it is actually causing tax revenues to decline. A tax cut will stimulate the economy and increase tax revenue."

The second method of raising taxes revenue is to grow the private sector of the economy. A $50 billion economy at a 5 percent tax rate yields $2.5 billion in tax revenues. A $60 billion economy at 5 percent will generate $3 billion in tax revenue.

Lowering tax rates which leaves more wealth in the hands of the private sector allows the private sector to grow. So I do not see a tax cut as benefiting only the "rich" but actually benefiting us all because the private sector has the ability to grow and create jobs and create wealth.

Also, the poor pay very few income tax. If any income tax relief is given, it must be given to those that pay taxes.


Rep. Thayn
https://chumly.com/n/11bf1be