Liberals what good is raising taxes at the rate the government is spending our money?
First, there is no evidence that tax increases will actually solve our troubles. On the contrary, years of data from around the world show that when nations try to solve a fiscal crisis primarily by raising tax revenues, they tend to fail. In contrast, fiscal approaches based on entitlement reform and spending cuts tend to succeed. American Enterprise Institute economists Kevin Hassett, Andrew Biggs and Matthew Jensen examined the experiences of 21 Organization for Economic Cooperation and Development (OECD) countries between 1970 and 2007. They found that countries with successful fiscal reforms, on average, closed 85% of their budget gaps with spending cuts. The countries with failed reforms, on average, relied at least 50% on tax increases. President Obama's strategy falls firmly in the latter camp. After discounting the accounting tricks that create fictitious spending cuts, the president's plan would impose about $3 in tax hikes for every $1 in spending cuts. That is, his approach would probably land America in the "failed attempt" column. Five years down the line, we would be in the same fiscal mess we are in today, just with higher taxes and a bigger government. Second, tax hikes aimed at small segments of the population wouldn't raise much in revenues. Consider the "Buffett Rule" that the president spent many months promoting. According to the Joint Committee on Taxation, it would raise about $47 billion over a decade. The federal government currently spends about $4 billion more per day than it takes in. The Buffett Rule, then, would raise about enough next year to cover 28 hours of government overspending. Heritage Foundation economist Curtis Dubay finds that closing the deficit solely by raising the two highest tax brackets would require hiking them to 159% and 166%, respectively. Third, as economists and business executives have noted repeatedly, raising taxes on families earning over $250,000 per year is effectively a massive tax hike on small businesses. Most small businesses today organize as S-corporations or other pass-through entities; their income is taxed as personal income. A study by Ernst and Young shows that Obama's proposed tax hike would force these small businesses to eliminate about 710,000 jobs. Moreover, these households already bear a great deal of tax liability. According to the most recent Internal Revenue Service data, those earning $250,000 and above -- roughly 2% of all taxpayers -- earn 22% of income, but pay 45% of all federal income taxes. Simply put, increasing tax rates on the wealthy is not a serious approach to solving America's fiscal woes. The problem is purely one of excessive spending, not inadequate taxing.
Asked By: Wrp - 12/6/2012
Best Answer - Chosen by Asker
My question is, why pay taxes when the government just prints money?
Answered By: Libertarian Confederate - 12/6/2012
Additional Answers (5)
Good cutting and pasting, but spending is down under Obama. http://www.truthdig.com/eartotheground/item/report_under_obama_taxes_deficit_and_spending_all_down_20120516/
Answered By: ★Ŕ♡MΛŔƐ★ - 12/6/2012
Another wasted cut and paste rant that only serves to show you do not understand the proposals. No one thinks simply raising the rates on the top 2% will solve our fiscal woes. There are also cuts being proposed. Also ending some loopholes in the tax code would increase revenues... More
Answered By: March2 - 12/6/2012
You copied and pasted a column written by a member of a conservative think tank. Now try and express an opinion in your own words and convince us that you actually know what you are talking about. For all you know, what those columnists are saying could be completely wrong. But you repeat it because it matches your... More
Answered By: Davros - 12/6/2012
because with the tax hikes we can fund obamas government for 9 days. and that is a step in the right direction.
Answered By: half honky half donky - 12/6/2012
if you just look at America, the economy has done best when the incremental tax rate was the highest. that may not be correct from the standpoint of dogmatic ideology, but empirically it is a fact. The last time we generated surpluses, the tax rate was 39.6%. Both the Reagan tax cuts and the Bush tax cuts caused a... More
Answered By: lare - 12/7/2012
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