Comment Re:Going Out of Business USA (Score 1) 982
First off, when the original poster claims that "Yes the USA Labor is Cheaper, it is our TAXES that are so DAMNED expensive", I disagree that the "The poster is not saying that cost of living is not the problem", as you claim.
In the Northeast US, a worker will typically pay income tax not only to the federal government, but also to the city, county and state in which they live. Once they have received their paycheck, they will go and try to buy various things. However everything they buy has a sales tax levied by the city, county, and state. Over and above sales tax, there are special taxes for given goods like gasoline, tobacco products, vehicles, etc.
Agreed; however, many of these taxes also go to lower the cost of goods. Taxes that go towards making roads so I can get to the store to buy goods cheaper and they can be transported to the store cheaper reduce my total cost of goods. They also make it cheaper for employees to get to work and make finding/switching jobs an easier proposition due to the social safety net; both of which make the cost of working less for the employee and thus put downward on employment.
Ad infinitum - police, fire, the CDC - all of these reduce the risk, and therefore cost, of going out into the world and trying to earn a living. It is much too simplistic to say that taxes are inherently bad for the economy and every tax percentage can be tacked on to the cost of employment. And while lowering taxes might have a positive effect on employment, blaming our taxes for unemployment is disingenious and overly simplistic.
In the Northeast US, a worker will typically pay income tax not only to the federal government, but also to the city, county and state in which they live. Once they have received their paycheck, they will go and try to buy various things. However everything they buy has a sales tax levied by the city, county, and state. Over and above sales tax, there are special taxes for given goods like gasoline, tobacco products, vehicles, etc.
Agreed; however, many of these taxes also go to lower the cost of goods. Taxes that go towards making roads so I can get to the store to buy goods cheaper and they can be transported to the store cheaper reduce my total cost of goods. They also make it cheaper for employees to get to work and make finding/switching jobs an easier proposition due to the social safety net; both of which make the cost of working less for the employee and thus put downward on employment.
Ad infinitum - police, fire, the CDC - all of these reduce the risk, and therefore cost, of going out into the world and trying to earn a living. It is much too simplistic to say that taxes are inherently bad for the economy and every tax percentage can be tacked on to the cost of employment. And while lowering taxes might have a positive effect on employment, blaming our taxes for unemployment is disingenious and overly simplistic.
