As we move forward from a bad debt ceiling deal that Republicans indicated wouldn't include raising taxes, there's a renewed push by the president and the legacy media to raise taxes.
“President Obama and many of his fellow Democrats continue to call for higher taxes on the wealthy. And, according to results of a CNN/ORC International Poll released Wednesday, many Americans agree that it's the only way the country can dig itself out of its current economic mess...
But just how many rich people are there? And are there enough of them for a tax increase to really make a dent in the United States' trillions of dollars in debt?...
Yet, even though these high-income earners are a minority, Obama says the proposed tax increases would boost revenue by $750 billion over a decade.
It's not quite the multi-trillion figure the U.S. needs to pay off the deficit, but for many of those who responded to the CNN/ORC International poll it's evidently a good enough start.”
-- CNN http://money.cnn.com/2011/08/11/pf/tax_increase_rich/index.htm
The point missed in the article above--and apparently by many in the public--is that $750 billion over a decade is $75 billion/year out of a deficit that has been running at more than a trillion dollars per year for the last three years.
Even draconian and confiscatory tax increases on the wealthy would not be enough to substantially decrease the deficit without endangering economic activity.
The fact that the poll indicates that the public might support such tax increases on the wealthy despite the fact that the increases would not materially change our fiscal situation is evidence not that raising taxes is a good idea, but rather that Democrats have largely succeeded in their class warfare rhetoric.
The larger problem is that Democrats are playing with the idea of raising taxes on the wealthy which distracts from the reality that massive spending cuts must be instituted.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 29th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom