http://www.progressiveu.org/373_bonehead_economics_101#comment-22628
In a comment, I contradict a more liberal view on economics.
To summarize, when you increase costs, you cause people to lose jobs. 35% of the costs from major corporations comes directly from taxes (also take into account that corporations can be legally double taxed, because they are legal entities seperate from the people who run it)
You do not start a business to be socially responsible, if the owner is greedy.. GOOD! he SHOULD be! if he is greedy, he will use good business sense to earn the most money, which means GOOD CONSUMER PRICES! Not only this, more money will be spent on EXPANSION which means JOB CREATION. Guess what? when you increase taxes to fund programs such as welfare or social security, you increase costs, and you decrease incentive. So not only do you decrease the amount of profit the company can make, you cause that company to start compensating (because remember, in a free market the proprietor's first goal is to earn a profit.. that's the ONLY reason he started the business, to earn money) So, he fires a bunch of people, those people become jobless the owner has less money to reinvest into his company and to expand, so the economy stagnates a little.
What do you do once you finally move to almost full socialism? You decide that "businesses are greedy entities and don't care enough about people" so you FORCE them to care (by taxing and spending the money for them) So.. what's the incentive to start a business in the first place if making a profit is THAT difficult? That is the decreased incentive which liberal economics cause, and in the long run, it willl cause great problems. more and more people will lose their jobs, and there will be a steady decrease in job creation due to economic stagnation.
• 
• 
• 
• 
• 
You are one of the few to point out the obvious that everyone seems to somehow miss, good job!