Monday, 3 December 2012

Phony versus Real

Taxing millionaires and billionaires is a slogan.  There is an interesting story in today's WSJ about the results of England's recent experience of taxing the rich.  They raised the tax on taxpayers making more than $ 1 million annually from 40 % to 50 %.  Guess what?  Tax revenues collapsed, while the number of tax returns reporting $ 1 million or more in income fell by more than 50 %?  That is a preview of our future if Obama gets his way.  Obama's soak the rich scheme will lead to lower revenues, a higher deficit, and a weakening economy.

Meanwhile, the entitlements march on. National debt, now at $ 16.3 Trillion will be $ 22 Trillion by the time Obama leaves office, if we are lucky.  It could be $ 25 Trillion if the economy falls apart because of Obama policies.  Taxing rich folks brings in $.08 Trillion per year, assuming you believe Obama's assumptions.  That means the national debt will be only $ 24 Trillion by 2016, not $ 25 Trillion..  Big deal! Taxing the rich is a phony issue of no substance.

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