John Maynard Keynes on Taxation

The avoidance of taxes is the only intellectual pursuit that still carries any reward. Taxation is a device used to implement wrongful money extracting from the citizens of the United States. At this rate most ideas or implemented theories on the current economic government will eventually die out. I concur that the optimal opinion of the people would to lower taxes in each state. It makes economical sense to do according to the research I submitted many years ago. A simple theory I proposed logically makes sense, and many Americans can take it into accordance. Put modestly if inflation is lowered then that will result in employers making capital investments, which would then have an outcome of hiring more employees. This will hence leave to major investment created by investors, which will then restore the economy and mend the failing growth. The fact that other economists believe that taxes are beneficial are completely incorrect. It is quite a blasphemy that the hard-working American citizens should have to pay extra money to a government economical system, which is clearly failing. Employers will not increase employees to produce items, which will not be sold due to an incompetent demand. I also theorize and believe the lower the business conditions the more capital investment shall be reduced. I strongly believe those business shall not take to advantage investment opportunities, which effects the reduction of overall expenditures and employment. It is my overall principal to say the conglomerate spending in the economy has a direct effect on output and inflation. The Great Depression was occurring during my span of existence. The ideas presented above were my attempt to understand the mystery of it all. I believe optimal economic performance could quite indeed be achieved. It is just the means by how this could be done. Going back to the stimulating issue of taxation, I believe lower taxes will approve current economics performance. I have always repeated the same phrases with taxation into regards taxes will stimulate demand, the Depression would have turned around in a heart beat if my beliefs and theories were implemented! You see, the aggregate demand by the activist stabilization and economic intervention policies by the government are constantly influenced. I believe in a demand-sde theory, even though this will help the economy in the short, run I guarantee it will be proven to work. Aggregate demand is completely influenced by a plethora of economic decisions that occasionally behave spontaneously. Now fiscal and monetary policies can affect aggregate demand. There are quite a few principles I also believe in relating to aggregate demand. Also according to my well popular beliefs the changes in aggregate demand have a short run outcome on real output along with employment. Inflation rises, when unemployment falls. In the long run, we are all dead. Fluctuations or changes in spending or also government expenditures could quite cause the output to fluctuate as well. We all know that government spending will increase, which means output will hence increase. I also strongly believe in the multiplier effect. This meaning output increases by a multiple of original change, which originally cause it. The multiplier must be greater than zero, which is the only snag in my theory. Now, prices and wages respond quite slowly to change in supply and demand. This will then result into small shortages, for a brief period of time, and along with that surpluses mostly regarding labor. Milton Friedman acknowledged, “under any conceivable institutional arrangements, and certainly under those that now prevail in the United States, there is only a limited amount of flexibility in prices and wages.” Yes all of this relates back to taxation because everything is linked together, to help the struggling economy.  I strongly do not believe any type of unemployment is ideal. It is thoroughly subject to the caprice of aggregate demand, and because prices adjust gradually! This is the only way the economy will for sure work out. I believe and many of my followers believe unemployment to be high on average too variable. There needs to be much theoretical justification. Recessions and depressions I believe are not part of the economic business cycle, and just are market responses to unattractive opportunities. Also my followers and fellow philosophers believe in advocating activist stabilization policies. This will reduce the amplitude of the business cycle. The government cannot know when to fine tune everything at full employment. Changes in policies, can always mess up some of my theories. Changes affecting the economy could take months to restore proper balance. I truly believe that unemployment needs to be resolved. All of the evidence I have research concludes the costs of low inflation are very minute! The government action which regulates economic value judgments are based on macroeconomic fluctuations significantly reduce economic well-being. The government has to improve its free market system. That is not even an option. There is a definitive way to cure recessions if my theories are utilized.  Now on regards to the current economic state in 2014 I have many opinions. How come the modern economists did not listen or implement my practices and theories. Raising taxes will not make the economy better or lower the national debt. I have been repeating this phrase and many others up to my death. If an item is pricey, then point blank less people will buy the specific product. Let us take for example a watch. Some watches cost thirty dollars others cost five-thousand. Why would you get more of a more expensive watch, when the only purpose is to tell time.  This concept relating to cost is also similar to that of income. A peaked income will result in the less income you will finally see. Taxation is always fluxed when incomes rise. The government often times takes too much of the citizens money. The economy is swimming with tax dollars, we will most likely never see again. The government does not let the people have full knowledge of every issue arising. Back to the original idea of raising taxes. It is an idea not even worth mentioning in the recession. Raising taxes will just wreck havoc amongst the entire nation! There will be pandemonium in the streets, and chaos spread through the country. It is just an extra weight added onto each loyal citizen. Extra taxes mean less income, and less spending, which fuels the economy. Nor should the argument seem strange that taxation may be so high as to defeat its object, and that, given sufficient time to gather the fruits, a reduction of taxation will run a better chance, than an increase, of balancing the budget. Income needs to be maximized, and result in reveues. “For to take the opposite view today is to resemble a manufacturer who, running at a loss, decides to raise his price, and when his declining sales increase the loss, wrapping himself in the rectitude of plain arithmetic, decides that prudence requires him to raise the price still more–and who, when at last his account is balanced with nought on both sides, is still found righteously declaring that it would have been the act of a gambler to reduce the price when you were already making a loss. From a business perspective it s not logical to say the least to raise prices in a time of need. Cutting prices on the opposite spectrum will increase sales, which the same ideas should be applied to taxes. Raising taxes does not improve the problem, it just creates an even grander one. Once again repeating my previous statements, the solution is to not raise taxes. Even though it seems by looking at much of the data the tax rates have been lower, the government creates hidden taxes. With so many taxes being in the modern world, I am quite content I am not living in this era. This generation will be swimming in debt and recession if the taxes are not regulated or lowered. It seems there is taxation on telephones, gas, cable, almost everything, which can cause inflation and higher prices of goods. It seems nothing I said in regards to taxes have stuck with this government. Back in my day my theories were proven, but it seems today there is no logic involved with decision-making. Why should the government raise taxes if I have repeatedly stated taxes should be lowered in order to get out of a recession? All in all, like I have stated throughout my entire rant….the solution to get out of debt is to not tax the citizens.