There is perhaps no better advertisement for an Ivy League education that this comment from a student of two such fine institutions;
“Steve, the math is the math. You can’t lower rates and raise revenue, unless you’re getting revenue from someplace else,”
That student was Barrack Hussein Obama. He is right if you ignore economics and assume that the economy never grows…never and you want to over simplify to fool voters. Oh you also have to assume that citizens don’t adjust their behavior based on what things cost and that includes how much taxes there are (i.e. more income tax = less money to spend or higher sales tax means your income does not go as far). I happen to think that is his intention. That is all that I can surmise since we are told that he may just be the smartest president we’ve ever had. HIs above quote says he is either dumb or a liar.
Economics in the economics…
First what happens – historically when taxes are raised?
“periods of higher tax rates are associated with sub par economic performance and stagnant tax revenues. In other words, when politicians attempt to “soak the rich,” the rest of us take a bath. Examining the three major United States episodes of tax rate reductions can prove useful lessons.”
Second what happens – historically when taxes are lowered?
“There is a distinct pattern throughout American history: When tax rates are reduced, the economy’s growth rate improves and living standards increase… tax revenues grow and “rich” taxpayers pay more tax when marginal tax rates are slashed. This means lower income citizens bear a lower share of the tax burden – a consequence that should lead class-warfare politicians to support lower tax rates.”
This video explains the principle, the “Laffer Curve”;
The thing to remember is that rates do not equal revenues. So increasing tax rates does not automatically tax increase revenues. To imply or state that as Obama did is a lie. Shame on 60 Minutes’ Steve Kroft for not challenging him.
Also why is there rarely a mention of several key facts:
- Nearly fifty percent of American workers do NOT pay income taxes.
- The top percent of wage earners pay MOST of the income taxes.
- Folks who continue to tell us that they don’t pay enough taxes (i.e. Warren, Barrack, etc.) NEVER volunteer to pay more taxes.
- You (Barrack and Congress) wouldn’t need to steal so much of our money if you CUT spending…real cuts…not cuts sometime in the future…not cuts over ten years that don’t even equal the money you spend in six months…money that you borrow each year from China.
- Stop the spending!
- Stop the spending!
- God just stop the spending!