Filed under: Capitalism, Democrat Corruption, Economy, Law, National Security, Taxes | Tags: President Barack Obama, Raising Taxes Hurts Growth, Spending is the Problem
The current debate over the “fiscal cliff” is an empty one, built upon a false premise. The debate pretends to be about raising tax rates to solve our current crisis. The claim is that it is the failure to tax the rich, or that the rich have not paid enough to prevent the present crisis.
If President Obama get his way, is proposed tax increases, to make the rich “pay their fair share,” on the top 2% of earners would fund the federal government for about eight days. If we taxed Americans earning over $1 million on 100% of their income, we would raise at best about $600 billion in revenue, which would not make even a significant dent in our over sixteen trillion dollar debt.
Taxing “the rich”is not a real solution, only political game-playing. Every dollar the government takes is another dollar used unproductively. Every dollar removed from the private sector and wasted in the hands of bureaucrats is a dollar that will not fund a payroll, hire someone who desperately needs a job, purchase goods or pay for services.
President Barack Obama has no intention of cutting back on spending. He has solar panels to support, cronies who want to build wind farms, electric cars to support, a “green fleet” to fuel. Or perhaps to hire more employees for the voraciously growing government. It takes some doing to add another trillion to the budget each year. That’s a lot of spending.
The president says we have no time for spending reforms. Increasing the taxes paid by the rich is too important, we must do it right not, and maybe he’ll look at spending a little later. This is what Democrats do. See that big orange bulge? That’s interest on the debt, that’s unreformed entitlements and ObamaCare — did you think ObamaCare was going to cut the cost of health care?
The federal government plans on spending $1 trillion more next year than it did four years ago. If we spent at 2008 levels combined with the revenues of 2012, next year we would have a deficit as small as $89 billion. Was the size of government we had in 2008 not big enough? Was there a vast outcry for more people, more buildings, more bureaucracies?
A serious plan would extend the tax rates we have had for 12 years. That would encourage business because they would know what to expect. They would be able to plan, knowing what their taxes will be. If they could plan, and keep a little more of their own earnings, they might even start to grow and expand and hire workers. That beats squeezing a few more bucks out of “the rich,” the people who invest and build and already pay 70 percent of all taxes.
There is a long history that clearly shows that raising taxes depresses the economy. Democrats just can’t get it through their heads. They want to spend, and to spend more they need more money.