"It would be nice if we could keep every tax break, but we can’t afford them," Obama said. "Because if we choose to keep those tax breaks for millionaires and billionaires, or for hedge fund managers and corporate jet owners, or for oil and gas companies pulling in huge profits without our help – then we’ll have to make even deeper cuts somewhere else."
Hear that, people? The government "can't afford" to let you keep any more of your money than they decide is best for you! Aside from the class envy engendered by the rhetoric of "tax breaks for millionaires and billionaires, or for hedge fund managers and corporate jet owners", the fact is, as was experienced by JFK, when he lowed tax rates, when you lower tax rates, you increase tax revenues to the government because there is more activity generated. People have more incentive to invest in their businesses when there is a monetary gain expected.
Obama, however, is on the record of saying that he favors raising taxes, even if lowered tax rates generated more income to the government, for the sake of "fairness".
"Pay as you go". Gosh. We should remind Obama of this between now and 2012 to ask him how his massive "stimulus" bills were "pay as you go"? Where were the other cuts in spending, Mr. Obama?
Expect to hear the mantra of "tax breaks for millionaires and billionaires" over and over again between now and election 2012. Remember, with Obama, it's not about fixing the economy or putting people back to work, it's about "fairness". If everyone (except the ruling class which he so conveniently seems to be a part of) is equality broke, then it's "fair". If everyone (except the ruling class which he so conveniently seems to be a part of) has crappy health care, at least it's "fair"!
If gas is five dollars a gallon and bologna is ten bucks a pound and you can't turn your thermostat higher than 67° in the winter time, at least we'll have the satisfaction of knowing we really stuck it to those corporate jet owners...who used to employ us for good wages!
H/T Memeorandum
Cross posted at LCR, Say Anything.
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The Free Market Principle of Equal Justice Under Law suggests that special tax credits be repealed. Government cannot be in the business of subsidizing market activities that would otherwise be unprofitable, while taxing profitable industries at the full rate.
ReplyDeletehttp://www.freemarketprinciples.com
Repeal of tax credits to industry might not even be seen as a tax increase. It could be called a spending cut. If it makes the democrats in congress feel better to call it a tax increase, we should be happy to accommodate.
With all due respect, selective tax cuts for the politically favored is worse than tax cuts for no one.
We can eliminate all subsidies to industry and call it a tax increase.
"Government cannot be in the business of subsidizing market activities that would otherwise be unprofitable, while taxing profitable industries at the full rate."
ReplyDeleteIf you're talking about the helium reserves, in case we ever need a fleet of blimps again, or mohair subsidies, I'm right there with you.
To arbitrarily remove business deductions from the oil companies, however, based on the politics of class envy, constitutes a regressive tax on the poor and middle class.
Raising taxes in a recession is not a good idea. even for the sake of "equality".
Flatten the tax and remove the subsidies after a recovery. Lowering taxes increases taxable activity which benefits both the government revenue and the individual, which is what the government should be doing now.
A rising tide lifts all boats, to coin a phrase.
Yeah, I wrote about this sort of thing last week when I discussed property rights... see
ReplyDeletehttp://aconservativeteacher.blogspot.com/2011/06/lesson-in-property-rights.html