TAX THE RICH INSANITY

Letter to the Editor

http://www.lakelandtimes.com/main.asp?SectionID=11&SubSectionID=11&ArticleID=16607&TM=80579.27

Lakeland Times – Chuck Boyd – 1/11/2013

TAX THE RICH INSANITY

Obama and his dumb-o-crat cronies are incessantly repeating that insane proposal that increasing the tax rate on the rich will solve all of our economic problems.
With the overwhelming amount of historical contradictory evidence it's obvious that all Democrats can't be that stupid. That leaves one and only one explanation for this universally proposed non-solution by Democrats:

Create extreme class warfare and divisiveness in order to sway a totally clueless electorate to keep them in office.
(i.e. teach the poor and middle class to hate the rich)

Dozens of competent economic analyses have shown that the cancellation of the Bush tax cuts for the rich would perhaps pay for about 1 week of the current daily deficit and have absolutely no effect on our long term debt and deficit.
Previously I reported on that enlightening example of comparing 1920 to 1929.

In 1920 the top tax rate on the rich was 73% and the three poorest brackets of tax payers paid 40% of taxes collected for that year.

In 1929 the top tax rate on the rich was 25% and the three poorest brackets of tax payers paid <7 collected="collected" for="for" o:p="o:p" of="of" taxes="taxes" that="that" year.="year.">

        Simply stated, increasing the top tax rate hurts the poor and middle class

Let’s take a different perspective in looking at our “terrible” tax problem.

Obamacrats assert that we don’t have a spending problem and therefore refused to put real spending cuts, debt limit, or entitlement reform on the table for the current negotiations regarding that fiscal cliff. So the current level of spending necessary to continue all the

Now we’ll isolate the problem down to just one year. What level of taxation is required to offset this $3.796 trillion spent in just one year? Since it is incontrovertibly proven that just modifying marginal tax rates is essentially worthless, a recent analysis of an option of 100% “total income” confiscatory tax rate on the rich was examined.

The question then is how do we define the “rich” in order to cover the spending for one year? The table below shows an accelerating confiscation of income by redefining downward the annual income of the “rich”.

•           $10 million per year - less than 24 days of federal spending

•           $1 million per year - 72 days of federal spending

•           $200K per year - six months of federal spending

•           $100K per year - $3.765 trillion taxes collected (still short by $30 billion) 

Thus even the ridiculous option of confiscation of 100% of the income of all tax payers making over $100K cannot fund our current annual levels of spending.

As I asserted previously, the rich didn't get that way by being stupid. When a government institutes a newer higher tax rate, the rich are experts in knowing ways to hide their income from tax collectors. An excellent recent example is the result of Britain's Prime Minister raising the top tax rate to 50%. In 2009 16,000 Brits reported income in excess of 1,000,000 pounds. In the year following the tax hike only 6,000 Brits reported income above 1,000,000 pounds. Where did those 10,000 millionaires go? (Also tax revenues decreased by 7 billion pounds.)
And then there is the case of France's Socialist President Francois Hollande's announcement of the new 75% tax rate on the French rich. One analyst reported:
"The end result is all too easy to predict. The steady flow of entrepreneurs and businesses out of France, which has already been taking place for some time, will now turn to a flood of money leaving Paris and an exodus of high wealth individuals, who will flee to the promised land of Britain, Switzerland, Singapore – anywhere they don’t have to hand over three quarters of their hard-earned money to the government. 

When they elected Hollande in the Spring, France’s voters knew what they were getting. A big government administration hell-bent on implementing failed socialist dogma regardless of the economic damage it would inflict. Hollande’s France should serve as warning to other countries that may be tempted to take the same path. Killing economic freedom and frightening away the very talent you need to attract in order to create jobs and spur economic growth is a recipe for economic decline."

An obscure, somewhat respected scientist (totally unknown to anti-science Democrats) by the name of Albert Einstein said:

“Insanity: doing the same thing over and over again and expecting different results.”

Bottom line is that British and French millionaires are now voting with their feet and if Obama has his way, a similar exodus from the U.S. will follow. It’s already happening internal to the U.S. in those Democrat dominated tax insane states of California and Illinois.

Northwoods Patriots - Standing up for Faith, Family, Country - northwoodspatriotscomm@gmail.com