Saturday, August 8, 2009

Why taxing the rich STILL doesn't work!

Seventy five years of economic data have shown that taxing the rich does not work, yet President Obama and House Progressives continue to push for increased taxes on the 'wealthy' to pay for their extravagant spending, to the tune of 10 trillion in deficits over the next 10 years. They use data from the Uberliberal Citizens for Tax Justice, who's founder, Steve Wamhoff, has tied himself to outdated keynesian economic models. These models have never worked effectively during a recession, because they are based on the idea that business and investors are making so much money, skimming a little off the top shouldn't be a problem. During a recession, however, investors look for tax shelters and businesses look to cut costs and find tax-friendly markets (hence the fantabulous economic growth of Arizona over the last 30 years while California's huge economy has lagged). A complete explanation of this idea, borne out in the economy over the last 30 years, comes from the Heritage Foundation. Written by independent economist Curtis Dubay of the Tax Foundation, the arguments are based on what has worked in government political practice for raising revenue, not proposals based on balance sheets and thought up by a college student. In truth, the connection between Wamhoff and Raul Grijalva is much more laughable than the policy statements Wamhoff has been paid by the Arizona Congressman to write. Using a donor's relative to write policy statements smacks of conflict of interest, Raul, but such are the ways of Community Organizers.

No comments:

Post a Comment