Robert Reich on Tavis Smiley - must watch TV

[NRaleighLiberal]

sorry - can't seem to embed the video, but it is at the link

http://video.pbs.org/video/2276247187

[1StrongBlackMan]

1. Posted to for future viewing.

[Sherman A1]

2. K&R

Always love Robert Reich....

[nanabugg]

3. Thanks for posting. It was great!!! nt.

[BlueStreak]

4. I know Reich is not an accountant or MBA, but I wish

people would explain the simple truth as to why "trickle down" doesn't work. It really isn't that complicated.

When tax rates are higher, that is an incentive for businesses and wealthy individuals to INVEST in the economy. When you invest in a new business or an expansion of an existing business, that investment is tax-deductible. If tax rates are higher, that means the government is essentially matching your investment.

When tax rates on corporations and the wealthy are low, that is an incentive for them to park their money and not invest in their businesses. That is the most basic reason why trickle-down never works.

And likewise, when business tax rates are higher, that means the effective cost of hiring employees is lower, because the cost of salaries and benefits is tax-deductible.