Update: McCain Selects Gov. Sarah Palin as Running Mate

[Schneed10]

OK, ask and ye shall receive.

Obama proposes to increase taxes on big business, small business, and citizens who make over $250,000. These groups are responsible for employing nearly 100% of the American workforce.

Now, think of the money flowing into these companies and businesses as a river. The government is like a dam in that river. The more they tax, the more they choke off the river, and the less water/money actually flows into the businesses downstream.

The less water/money that flows into these businesses, the less water there is for fishermen to find work, and the less fish there are to catch. The less money there is for companies to use, the fewer people they can afford to employ, and the fewer new products and services they can afford to bring to market.

Result? Unemployment invariably rises when taxes are increased. Look at history, it'll show it.

When businesses are forced to cut back on goods and services they offer, they are forced to try to make money in other ways. The most common is increased prices on existing services.

Result, higher prices (inflation) for the daily goods and services we all rely on.

You might say that inflation has gotten out of control even with the Bush tax cuts in place. That's true, but it's not the result of the tax situation. We've experienced inflation in food because of increasing demands for corn and rice to develop ethanol. As demand goes up, prices go up. Corn and rice is used to feed cows and chickens, making it more expensive to feed animals, meaning prices for meats and dairy have gone up. In addition, we've seen increased demand for food products as other huge nations like China and India have developed, and now have the funds to eat finer foods that we Americans enjoy, increasing demand and therefore prices for more than just your basic corn and rice.

In other words, had taxes been higher than they were under Bush, inflation would have been EVEN HIGHER than it already has been. These global changes in demand would have been no different under a different tax structure. It would be entirely inappropriate and categorically incorrect to blame inflation on the Bush tax cuts.