Follow along. This works with any big business, but I'll use a Cessna worker here as an example.
Cessna hires Joe for $20/hr (round numbers, please). Joe goes to work and makes his $40,000/year. Joe pays his bills, pays his taxes and has some money left over. Joe now has a disposable income. Joe says, "hey family, why don't we go on a vacation? We'll go to Disney World!".
Joe buys 4 airline tickets on ABC airways, 5 nights in DEF hotel, 4 Disney tickets, food, etc. The airline has to have someone working to check him in at the ticket counter. Because Joe is giving the Airline his disposable income, they can afford to do that. Now that money gets taxed again (it was taxed already when Joe earned it and now it's being taxed when Susan the airline ticket girl gets her share...and the company pays taxes on it before that, so it gets taxed twice actually...of course Cessna and Joe already paid tax on the money to begin with). Someone has to load the bags. Because Joe's disposable income is coming in as revenue, the airline hires a baggage handler. That money also gets taxed again (read above). Then the airline needs FA's, pilots, mx, etc. Because the airline is getting revenue, they can afford those things. That income is taxed again.
Then Joe gets to Florida and rents a car. The car rental place has to have someone working the desk, someone working the lot, someone to maintain the cars, etc. They can afford it because someone is giving them money. ...and the money gets taxed again.
Then Joe gets to the hotel. The hotel needs front desk, housekeeping, someone to set up the breakfast, etc. They can afford that because Joe's giving them some of his money. That money gets taxed again.
Then, Joe goes to Disney World to see the Mouse. He buys tickets and food and the Goofy hat with the long ears and a picture of his kids with Donald Duck, who oddly enough never seems to be wearing pants, then he buys them a shirt, etc, etc.
You have to have someone at the ticket window, at the gate, security, someone to play inside the Mouse and Duck and Goofy costumes, someone to sell the merchandise, someone to take the pictures, someone to prepare the food, someone to sell the food, someone to clean the park, ride operators, actors (or "cast members" as Disney Employees are called), band members, supervisors, etc.
Disney can afford all of that because....well, because they're Disney...but maybe they hired another guard because Joe's revenue came in and they could afford to do that while not decreasing bonuses to Bob Iger. That money all got taxed again...but instead of the business paying 25% (round numbers), they're paying 15% because of others in the workforce (like Joe and the extra guard and the cook and the janitor and the cast members and the ticket girl and security, etc.) that are also paying taxes.
The government's pockets stay full. Joe can afford his family. Someone out there can afford a 2-seat trainer. It's a circle. You put in the quarter and get on the horse...you go up and down...and around. Circular like a circle.
The point is...
We have to produce something here in this country if we're going to survive. That's the only way to solve these problems. If we're not making cars and airplanes and computers and clothes and books and widgets to sell not only to each other, but to the rest of the world...we're not producing revenue. Revenue to do things like pay our bills and pay our taxes so we can have things like schools and roads and a strong military, yadda yadda.
Instead, we'll let companies produce products in other countries and sell them here for a fraction of what it cost to purchase an American made product. But who's going to buy it? The guy on Unemployment that got laid off from the GM factory? The furloughed pilots? The guy with a graphic design degree that has started his new career....flipping burgers at McDonald's because no one's hiring his position because they aren't making any money?
Where does the money come from to purchase these products?
What could
possibly go wrong with a plan like
that?
-mini
.
