The Long Version

Retired broadcast journalist. Blogging helps scratch the itch. Recovering exRepublican – Sober and still Conservative.

Posts Tagged ‘Tax

Raising Taxes Does NOT Raise Revenue: Debunking the Liberal Myth

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The politics of taxation are about to get a smack down.

The left argues that we need to tax the most affluent among us at a much higher rate than we currently do because, they have more and therefore should pay more.  That argument is fine as long as the word “fair” is left out of the debate.  Because making someone pay more of their income by percentage than someone else is simply not fair.

The right argues that we should tax the most affluent among us at a lower rate, suggesting this will encourage wealthy Americans to spend more of their disposable income to spur the economy if indeed they have more disposable income due to lower taxes.  The “trickle down” effect is disputed by the left as non-existent, arguing tax breaks for the wealthy do not translate into job growth or a better economy for the middle and lower classes.

Time to put the argument to rest and I believe this explanation of the Laffer Curve does just that.  Take the next 6 minutes and get a solid education on the economics of taxation from a UCLA Professor of Political Science and Economics.


 

This would give ample weight to the idea that corporate and individual income tax should not be higher than 33% and probably best between 25 and 30%.  Like former President Bill Clinton said at the Democrat National Convention, it’s arithmetic!

The numbers are hard to refute and even harder for the left since it was someone from their side that came to the end conclusion.

Despite the vast majority of Democratic opinion that rails against the Laffer Curve’s theoretical constructs (at least when it comes to lower-level tax rates), Dr. Tim Groseclose, Professor of Political Science and Economics at UCLA, claims that its tenets are “very uncontroversial among economists.”

President Obama’s plan will increase taxes on those making over $250,000 from 33% to 36%.  If he gets re-elected, it will be interesting to see how the Laffer Curve comes into play.

The Laffer Curve could turn Obama and the Democrats tax plan into a real “Laffer”.

 

Written by DCL

September 10, 2012 at 4:14 pm

Tax the Rich and Solve What?

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Tax the Rich!The cry is getting louder and louder with the President holding the Bull Horn.

OK.  What if we did raise taxes on the rich and made them pay their “fair share” (with no definition of fair coming from the left).  Would that finally solve the budget woes the country is in?

Let’s look at the math.

In 2008 (latest data available) there were 1,400,000 returns filed by people in the top tax bracket $392,149.  Their total income was 1.7 trillion dollars.  They paid 400 billion in taxes at 23% leaving them with 1.3 trillion after taxes.  The deficit is 1.5 trillion.

Since the deficit is 1.5 trillion and they only have 1.3 trillion left they would need to be taxed at an additional 115%.  Since they are already taxed at 23% their total tax bill would need to be 138% of what they made.

Of course those numbers are for federal income taxes only.  These taxpayers also paid sales tax, property tax, state income tax, and of course all of those fun little hidden taxes we love and adore.

So, now that we’ve taxed all wealthy Americans into poverty, with no solution to the budget or deficit problem, what do we do next?

That question is directed at you, the Left, since your bright idea to tax the rich doesn’t work out so well.

Let the spin cycle begin…

Source(s):
The Tax Foundation

Walter Williams, an economist, author, and syndicated columnist, truly clarifies the absurdity of going after the rich to solve all of our financial woes in this country.

Politicians, news media people and leftists in general entertain what economists call a zero elasticity view of the world. That’s just fancy economic jargon for a view that government can impose a tax and people will behave after the tax just as they behaved before the tax, and the only change is more government revenue. One example of that vision, at the state and local levels of government, is the disappointing results of confiscatory tobacco taxes. Confiscatory tobacco taxes have often led to less state and local revenue because those taxes encouraged smuggling.

Similarly, when government taxes profits, corporations report fewer profits and greater costs. When individuals face higher income taxes, they report less income, buy tax shelters and hide their money. It’s not just rich people who try to avoid taxes, but all of us – liberals, conservatives and libertarians.

What’s the evidence? Federal tax collections have been between 15 and 20 percent of the nation’s Gross Domestic Product every year since 1960. However, between 1960 and today, the top marginal tax rate has varied between 91 percent and 35 percent. That means whether taxes are high or low, people make adjustments in their economic behavior so as to keep the government tax take at 15 to 20 percent of the GDP. Differences in tax rates have a far greater impact on economic growth than federal revenues.

So far as Congress’ ability to prey on the rich, we must keep in mind that rich people didn’t become rich by being stupid.

See the Walter Williams full column here.

Written by DCL

May 15, 2012 at 12:46 pm

Tax The RICH! Sounds Good, Solves Little

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I ask for common sense.  I ask you to look at the math.  I ask you to dig down deep.  I ask you to be honest.

Is increasing taxes on millionaires in this country more about helping pay off the debt OR making jealous people feel better?

Watch and consider.

http://plus.cnbc.com/rssvideosearch/action/player/id/3000083556/code/cnbcplayershare

Class warfare is not a healthy thing for this country.

It’s got to stop!

Written by DCL

April 13, 2012 at 2:45 pm

Your Tax Dollars at Work

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I’d venture to guess that every U.S. taxpayer knows his or her tax dollars are often spent in ways that he or she would not agree with, would consider wasteful, or would say is just plain foolish.  But in a time when government spending is truly out of control, talk of tax increases is becoming more than just talk, and millions of Americans are either out of work or working for much less income than they were just a few years ago, you’d think someone with a brain would be looking at the more frivolous and unnecessary tax expenditures and cutting them off.

But then, that would be assuming anyone in control of the government purse strings actually had a brain.

Here’s a little something to chew on.  Be careful not to bite your tongue off as your chewing grows more vigorous…

WSB TV in Atlanta has discovered that the State Department is spending millions of dollars to save mosques overseas.  This coming on the heels of an announcement by a government commission suggesting the US eliminate the interest education for home mortgages as a way to reduce spending…  Oh how times have changed.

A $770 million project to rebuild Cairo’s sewer system, paid for by the U.S. State Department’s USAID program is where the money for the mosques is coming from.  How exactly does the government explain to the American taxpayer right now, whose having an extraordinary time paying bills and making ends meet that this is why we took these taxes out of your paycheck, so we can fund this?  Oh that’s right, it’s the government.  They don’t have to explain their actions to us.  Besides, we’re too stupid to understand what it all means anyway, just ask our President and select members of Congress.

Egyptian-American human rights activist Nonie Darwish told Channel 2 Action News anchor Justin Farmer that trying to buy respect in the Middle East only shows our weakness.
“This part of the world has a lot of respect for power and America is not showing its power, it’s showing its appeasement. They are laughing all the way to the bank,” said Darwish.

Darwish was born in Egypt and is now a former Muslim. Darwish told Farmer that she moved to America and has written several books critical of radical Islam. Darwish said that most of the mosques in Egypt are run by extremists who have ordered former Muslims like herself to be killed.  “We are rebuilding mosques to support the radicals, not to support the moderates. We are building mosques to issue fatwas of death against people like me,” said Darwish.

Other items being paid for by our tax dollars include computers in mosques and internet service.

Hope your tongue is OK…