5 Quick Questions about Barack Obama’s Tax Increases On the Rich


Higher taxes on the rich have been the holy grail of Barack Obama’s presidency. He spent four years talking about it, ran his reelection campaign on it and was willing to take the nation over the fiscal cliff to get it.

Now, he has gotten his wish. Taxes on the wealthy have gone up.

1) So, is this going to fix the deficit? No, the deficit is actually getting larger because of new spending in the fiscal cliff deal.

2) Did we only raise taxes on the rich? No, of course not. The payroll tax went up, too.

3) Will it create more jobs? No, in fact it will slow down job creation a bit because it will take money that job creators could have used for investment and move it into the government’s coffers.

4) Will it help the economy? No, in fact it will probably slow down the economy a bit by transferring money from the private sector to the government.

5) So, what did raising taxes on the rich actually accomplish? It reduced “inequality” by helping to make everyone a little poorer and it made a great campaign issue for Obama. So, there’s that.

So, if as expected, the economy continues to splutter along, the jobless rate stays high and the deficit remains huge, the question for Obama then becomes, “Now what?”

Related Articles

58

Newt’s Tuesday Blogger Conference Call

I just finished with a blogger conference call held by Speaker Gingrich in which he tried to further explain where

0

OBAMA’S DHS: DRONES, HOLLOW POINTS, AND SECRECY

What has our Department of Homeland Security metamorphosed into? Our third largest government agency has been stockpiling weapons and ammunition

15

Priorities: Obama Used Autopen To Sign “Fiscal Cliff” Legislations

Roughly since mid-November (NMP) Obama has been Cranking up the pressure on passing “fiscal cliff” legislation. He’s been excoriating Republicans.