With looming budget deficits and record spending, Obama is once again going after "The Rich" as a way to "pay for" his historic levels of debt spending. This seems to be the fallback position for every liberal administration going back to the days of LBJ.
There theory is that since "The Rich" have more, they should pay more than their "fair" share to help the less fortunate via government spending. History has proven this ideology wrong.
According to Richard Vigilante, co-author of "Panic: The Betrayal of Capitalism by Wall Street and Washington," the argument against raising such taxes is clear. "Every single time we've cut capital gains taxes, the revenue from capital gains taxes has gone up, not down. Because you get more investment, stock prices go up, bond prices go up, and as those things go up, the government collects more capital gains tax revenue."
Donald Rehr, a professor at George Washington University, argues “the wealthy invest that money in publicly held companies in private firms in entrepreneurs -which create more jobs, create more products and create more service and create more wealthy.."
"So it's not like they go home to their big mansion every day," he says, "and look at their pile of money on the floor and say, 'hey let's count it again just for fun. They don't do that. They invest it."
Obama promised during his presidential campaign that no one making less than $250,000 per year would see "one-cent" in tax increases. His latest proposal however add taxes for singles making $200,00 and couples making $250,000. By the way, if a "couple" makes $250,000, doesn't that mean they make $125,000 each?
So much for another Obama campaign promise.
Other great posts:
http://hotair.com/archives/2010/04/06/here-we-go-top-wh-advisor-says-its-time-to-start-thinking-about-a-vat/
http://www.citizeneconomists.com/blogs/2010/04/12/economic-events-on-april-12-2010/
http://www.talkingpointsmemo.com/archives/2010/01/is_obama_a_deficit_peacock.php
http://deliciousquotes.com/?p=39
Apr 12, 2010
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President Reagan got it right- lower taxes equal greater revenues. This bunch in Washington know it, but they won't do it. They believe if they punish the rich, their voters will love them.
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