Higher Tax Rates on Wealthy Won’t Draw More Revenue from Them

The higher the taxes that Obama wants to impose on the wealthy, won’t generate more revenue for the government from them, according to Stephen Moore, a member of The Wall Street Journal editorial board.  And reasoning shows higher rates on the wealthy would slow the economy down, giving them less income and thus cutting their tax payments.  The solution to the revenue problem, which Obama fails to admit that needs done is to cut tax rates, which would strengthen the economy, provide more income to everyone, and thus boost tax payments from the wealthy.

If you aren’t making any money, then your taxes are lower.  “The country needs an economy that will create more of the ‘millionaires and billionaires’ that Mr. Obama loves to excoriate, not more taxes from those who already exist,” Moore says. “Total taxes paid by millionaires fell by almost $100 billion between 2007 and 2010. The drop resulted not from too-low tax rates, but from the severe recession and an anemic recovery since 2009 that thinned the ranks of the wealthy.”

The history of the last 100 years is that “lower rates have shifted the tax burden onto high-income earners and away from the middle class while maintaining the tax code’s progressivity,” Moore writes.

Newsmax

In the 1980s, then President Ronald Reagan cut taxes across the board with the top rate sliced to 28 percent from 70 percent. The economy boomed and taxes paid by those Americans in the top bracket rose every year during the decade’s expansion, Moore says. The portion of taxes paid by the top 1 percent gained to 25 percent in 1990 from 18 percent in 1981.

The economic growth created through lower tax rates over the years has benefited the middle class too.

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4 Comments

  1. Hello,

    You seem to have an alternative point of view from me. I wrote a blog piece entitled, “Taxing the richest does not kill jobs.” I honestly want to know the reasoning from your point of view, so I found your blog post interesting. Here’s my post:

    http://thegreatantagonizer.wordpress.com/2012/11/15/taxing-the-richest-does-not-kill-jobs/

    I’d be interested in your analysis.

  2. Janet

    The problem here is that Obama doesn’t just want to tax the super rich, but also individuals making $200,000, and $250,000 for married couples. Stands to reason, if one were to tax these rich, they will cease to invest. Less investment earnings = less money to tax. With no investing, no jobs are created, simple fact. Therefore, less revenue is coming in to the feds, so as a result, the next group to be taxed will be the middleclass, as there’s no way around it. Why should we take from them anyway, as it’s money they earned legally, just so government can keep spending? Since when does government/a president decide when one has earned enough money?

  3. Figgy

    Well antagonizer, I hope you don’t mind if I use the same specious argument biden used in the debate. Namely, your whole piece is a ” bunch of malarkey” based on the same faulty reasoning obama likes to use. The rich didn’t get rich by being stupid and they’re not just going to roll over and let someone take their money. If you have checked the news lately you’d see that companies are already laying off people and cutting hours because they cannot afford obamacare ( which you may remember the Supreme Court found was indeed a TAX !!) Obama’s whole need to “tax the rich” emanates from his desire to redistribute the wealth. I won’t say that’s being “socialist” but…it IS one of their MAIN tenets.

    So, here’s my plan for a fair and equitable means for obama to raise revenue. He needs to determine the amount he needs then divide it among those who voted for him as they have evinced a desire to voluntarily give their money to Washington. Meanwhile, give the innocents who knew better than to vote for him a free ride from his onerous taxes/penalties.

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