The debate over Obama's and the Dems' planned tax increases on the 50% of those who are still paying taxes reminds one of that great policy mind and tax expert, Alvin Lee of Ten Years After.
In "I'd Love to Change the World," he wrote:
"Tax the rich, feed the poor, 'til there are no rich no more."
Arthur Laffer, in a great Wall Street Journal op-ed today - quotes JFK as saying,
"Tax reduction thus sets off a process that can bring gains for everyone, gains won by marshalling resources that would otherwise stand idle—workers without jobs and farm and factory capacity without markets. Yet many taxpayers seemed prepared to deny the nation the fruits of tax reduction because they question the financial soundness of reducing taxes when the federal budget is already in deficit. Let me make clear why, in today's economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarged the federal deficit—why reducing taxes is the best way open to us to increase revenues." (Emphasis mine)
Says Laffer, "Anyone who is familiar with the historical data available from the IRS knows full well that raising income tax rates on the top 1% of income earners will most likely reduce the direct tax receipts from the now higher taxed income."
These tables showing tax receipts, would seem to support Laffer's view, as the years 2005-2008 show the highest tax receipts.
Peter Morici, in today's Baltimore Sun, adds, "Raising taxes now would kill the economic recovery, push unemployment well above 10 percent and boot the real problem, runaway spending, to President Obama's successor." Morici asks, "Why do we want to discourage successful people from keeping their wealth in the U.S. and creating jobs?"
Add to this today's AP story, "As spending by wealthy weakens, so does economy," and anyone who cares about the health of our fragile economy should be worried about the prospect of Obama's tax-raising scheme.
Don't believe me? Ask Alvin Lee.