As Obama and his allies seem less and less likely to cut any spending, all the while insisting on $1.6 trillion in tax increases, wholly ignored are facts and data. Even if we ignore the fact that Obamacare raises taxes on the middle class, Obama has claimed that only the wealthiest Americans would see a tax increase, and that the middle class had nothing to fear. While a family of 5 with a household income of $200,000 a year is certainly comfortable, they could hardly be described as anything but middle class.
A couple of days ago Thomas Sowell wrote an article discussing the value of the new book by Stephen Moore called “Who’s The Fairest of Them All?”. This book takes on the economic lies propagated by the media, the left, and increasingly many politicians on the right. Liberal’s capacity for self deception always amazes me, as their prophet and martyr John F. Kennedy even knew that cutting taxes helps the economy, and can even lead to more revenue being collected by the government. Even John Maynard Keynes knew that cutting tax rates could increase tax revenues!
Which is why it should be obvious by this point that the left is not at all interested in improving the economy. They are far more interested in “fairness”, because apparently when everyone is equally impoverished, the world will be a better place. And according to Thomas Sowell, the book reveals that when Republican Calvin Coolidge, and Democrat John F. Kennedy each lowered the tax rates, more tax revenue was collected from high income earners!
There is nothing mysterious about this. At high tax rates, vast sums of money disappear into tax shelters at home or is shipped overseas. At lower tax rates, that money comes out of hiding and goes into the American economy, creating jobs, rising output and rising incomes. Under these conditions, higher tax revenues can be collected by the government, even though tax rates are lower. Indeed, high income people not only end up paying more taxes, but a higher share of all taxes, under these conditions.
In discussing Moore’s book “Who’s The Fairest of Them All?”, Sowell says that many positions of the left and right have switched since Kennedy’s time, when Senators Bob Dole and Barry Goldwater were against reducing the top tax rate from 91% to 70%. But unlike today’s Republicans, JFK had a response when critics claimed he was cutting taxes for the rich, and favoring the wealthy.
President Kennedy argued that it was a tax cut for the economy, that changed incentives meant a faster growing economy and that “A rising tide lifts all boats.”
If Republicans today cannot seem to come up with their own answer when critics cry out “tax cuts for the rich,” maybe they can just go back and read John F. Kennedy’s answer.
On Sowell’s recommendation I am going to buy the book “Who’s The Fairest of Them All?”, since dispelling liberal myths is one of my favorite pass-times. I just wish people would look into the facts before blindly calling for massive tax increases in the name of fairness. Since lowering tax rates actually means the rich will end up paying more money, and a higher percentage of all tax revenue collected, it would be foolish not to “reward” the rich with lower tax rates, so that they can keep paying for our government; let the tide come in and raise us all. As it stands we are ready to cut off our nose, to spite our face.