Remember the last time we raised taxes? What year was it? Oh, right, it was two weeks ago!
You’d think it had been 20 years the way President Obama and other Democrats are demanding yet another tax increase. But they are. Obama said in a press conference on Monday that if Republicans think they’re going to get any spending cuts at all, they’re going to have to give him even more tax increase as part of the bargain.
Now why weren’t the tax increases that Republicans accepted in the fiscal cliff deal enough? It’s not that they weren’t substantial. In total, they represent the biggest tax increase this nation has ever seen. No, the reason they weren’t enough is that the deficits we’re running are so massive. Do you realize how much $1.2 trillion is? If you imposed a tax of 100 percent on everyone who makes $500,000 a year or more, it would barely raise enough to cover it – and that’s assuming the disincentive you’d create wouldn’t cause them all to just stop working, which it would.
Now some Democrats, like Howard Dean and Richard Durbin, are admitting they really want to raise taxes on the middle class, since that’s where the money is.
This is insane. For one thing, the federal government does not need to spend $3.7 trillion a year. Obama refuses to admit this, but it’s the truth. For another thing, raising rates isn’t the right way to raise revenue. Economic growth is. We need policies designed to achieve GDP growth of 4 percent or more. That’s when you’re creating wealth, creating jobs and raising government revenue. The Democrats’ way, imposing one tax increase after another, has never worked and will never work.
