This is the economic analysis of the AFL-CIO, as presented earlier today in a presser titled, "An Oregon Senator wants to Repeal Measures 66 & 67?"
" **Newsflash** - when the wealthiest Americans get tax breaks they invest that money in stocks and bonds and multinational corporations, put it away in savings, and take it out of circulation."Just once I'd like to read something intelligent from the AFL-CIO. If they can't see that increased taxes puts pressure on businesses to reduce costs--including labour--then maybe they should send away to economics land for an employee who could point out what increasing costs through increased taxation,
ceterus paribus, does to producers of goods and services. You can't magically whisk away money from the producers of goods and services without impacting those producers.
Likewise, reversing high taxation returns revenue to producers. And guess what? They use it to produce goods and services, and among the inputs of the production process are employees. Labour.
Should the AFL-CIO be able to see the connection between profitable businesses and happy workers? I think so. But the kind of rhetoric coming out of the AFL-CIO is not encouraging. I'd counsel that instead of "jobs with justice," they should concentrate on jobs.
