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A Simple Economic Truth America's Super Rich Don't Want Us to Know About

Taxing the rich is good for everyone--even the rich.

A Simple Economic Truth America's Super Rich Don't Want Us to Know About | Alternet

For the past 32 years, Americans have been living a lie. It's a lie that helps out rich people and screws working people, and it's a lie that needs to be called out.

The people promoting this lie - most all of them rich people themselves - have been so good at promoting this lie that pretty much everybody believes it. It's even asserted as fact, without contradiction, in the mainstream media. But it's a lie.

The lie is that raising income taxes on rich people and hugely profitable companies hurts economies and even leads to unemployment. The truth is that raising income taxes on rich people and hugely profitable companies actually helps economies and causes companies to hire more and more people, thus lowering unemployment.

What makes this lie particularly relevant right now is that the French Constitutional Council - their court that decides what's constitutional and what's not - has just agreed with the new socialist government that it's totally legal to raise the very top income tax rates on very wealthy individuals and hugely profitable corporations to 50 percent (effectively 75 percent when you add in their other taxes like our FICA that funds healthcare and retirement).

The lie that tax increases - like the one the French Constitutional Court just approved - raise unemployment, and that tax cuts reduce unemployment, is widely believed because, like so many Big Lies, it has a small germ of truth at its center. That germ of truth is that when people who spend all (or nearly all) of their income every year - poor people and working-class people - have a little more money in their pocket, they spend it. That increases economic activity - there's more demand for goods and services. To meet that demand, employers hire more workers.
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