why raising Corporate taxes is a problem

here is the thing. if the economy is failing (which it is) how is the government going to save it?

the answer: it can't

the government gets its funding from two main sources: taxes and it prints its own.

if it just prints the money to cover the shortfall that we are seeing then we will have inflation, maybe even hyper-inflation. that is VERY bad. don't believe me? look at what Mugabe has done in Zimbabwe. we are already being threatened by high inflation rates. so Obama (or any government) can't do that to fix it...

that leaves taxes to collect all the necessary funds for the 'relief' programs (Social security, Welfare, Unemployment, TARP, Bailouts, etc). now here's the thing, individual citizens are suffering in the economy and are making less money, so you can't increase their taxes without causing more harm. so who can the government tax? Corporations, of course! i mean, they are greedy and make too much money anyway (sarcasm is present). i will admit that some corporations are greedy and corrupt, but the vast majority of them are not. most of them are trying to keep producing in a stagnant economy. so when you increase taxes on them, that cuts into the earnings and revenue and the company needs to compensate in some way. the company has two ways to do this (1) increase the sale price of their product, or (2) cut costs. in order to increase the sales price to compensate for the proposed tax increase, most companies would need to up the price between 10%-30%. They wouldn't be able to sell very much in a sinking economy by doing that, now would they? so that leaves them with cutting costs. guess what is the easiest and most efficient way to cut costs? get rid of employees. that is right, lay-offs.

so increasing the corporate tax will lead to more unemployment. which leads to further recession, etc. i believe the term we are looking for is 'a vicious spiral.'

so here is a suggestion for employers that i heard and I think it is good enough to propagate. if you are having trouble deciding which employees to let go. just go to the parking lot, and find the cars with 'Obama' stickers. after all, they did want change...