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Will raising taxes on the rich help the economy and create more jobs?

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The presidents of my two favorite think tanks, Arthur Brooks (AEI) and Edwin Feulner (Heritage) explain in this USA Today editorial.

Excerpt: (links removed)

First, there is no evidence that tax increases will actually solve our troubles. On the contrary, years of data from around the world show that when nations try to solve a fiscal crisis primarily by raising tax revenues, they tend to fail. In contrast, fiscal approaches based on entitlement reform and spending cuts tend to succeed.

American Enterprise Institute economists Kevin Hassett, Andrew Biggs and Matthew Jensen examined the experiences of 21 Organization for Economic Cooperation and Development (OECD) countries between 1970 and 2007. They found that countries with successful fiscal reforms, on average, closed 85% of their budget gaps with spending cuts. The countries with failed reforms, on average, relied at least 50% on tax increases. President Obama’s strategy falls firmly in the latter camp. After discounting the accounting tricks that create fictitious spending cuts, the president’s plan would impose about $3 in tax hikes for every $1 in spending cuts.

That is, his approach would probably land America in the “failed attempt” column. Five years down the line, we would be in the same fiscal mess we are in today, just with higher taxes and a bigger government.

Second, tax hikes aimed at small segments of the population wouldn’t raise much in revenues. Consider the “Buffett Rule” that the president spent many months promoting. According to the Joint Committee on Taxation, it would raise about $47 billion over a decade. The federal government currently spends about $4 billion more per day than it takes in. The Buffett Rule, then, would raise about enough next year to cover 28 hours of government overspending. Heritage Foundation economist Curtis Dubay finds that closing the deficit solely by raising the two highest tax brackets would require hiking them to 159% and 166%, respectively.

Third, as economists and business executives have noted repeatedly, raising taxes on families earning over $250,000 per year is effectively a massive tax hike on small businesses. Most small businesses today organize as S-corporations or other pass-through entities; their income is taxed as personal income. A study by Ernst and Young shows that Obama’s proposed tax hike would force these small businesses to eliminate about 710,000 jobs. Moreover, these households already bear a great deal of tax liability. According to the most recent Internal Revenue Service data, those earning $250,000 and above — roughly 2% of all taxpayers — earn 22% of income, but pay 45% of all federal income taxes.

Simply put, increasing tax rates on the wealthy is not a serious approach to solving America’s fiscal woes. The problem is purely one of excessive spending, not inadequate taxing.

Revenues haven’t changed substantially over the last decade, but government spending is way, way up. That’s what’s causing us to go into debt – massive government spending on turtle tunnels and Solyndra. We can do better than socialism.

Videos

The Great Global Warming Swindle Channel 4 documentary

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Details:

The film, made by British television producer Martin Durkin, presents scientists, economists, politicians, writers, and others who dispute the scientific consensus regarding anthropogenic global warming.

The film’s basic premise is that the current scientific opinion on the anthropogenic causes of global warming has numerous scientific flaws, and that vested monetary interests in the scientific establishment and the media discourage the public and the scientific community from acknowledging or even debating this. The film asserts that the publicised scientific consensus is the product of a “global warming activist industry” driven by a desire for research funding. Other culprits, according to the film, are Western environmentalists promoting expensive solar and wind power over cheap fossil fuels in Africa, resulting in African countries being held back from industrialising.

The film won best documentary at the 2007 Io Isabella International Film Week.

A number of academics, environmentalists, think-tank consultants and writers are interviewed in the film in support of its various assertions. They include the Canadian environmentalist Patrick Moore, former member of Greenpeace but for the past 21 years a critic of the organisation; Richard Lindzen, professor of meteorology at the Massachusetts Institute of Technology; Patrick Michaels, Research Professor of Environmental Sciences at the University of Virginia; Nigel Calder, editor of New Scientist from 1962 to 1966; John Christy, professor and director of the Earth System Science Center at University of Alabama; Paul Reiter of the Pasteur Institute; former British Chancellor of the Exchequer Nigel Lawson; and Piers Corbyn, a British weather forecaster.

Famous economist Thomas Sowell has written about the documentary in National Review.

He likes it:

Distinguished scientists specializing in climate and climate-related fields talk in plain English and present readily understood graphs showing what a crock the current global-warming hysteria is.

 

[…]There is no question that the globe is warming but it has warmed and cooled before, and is not as warm today as it was some centuries ago, before there were any automobiles and before there was as much burning of fossil fuels as today.

None of the dire things predicted today happened then.

The documentary goes into some of the many factors that have caused the earth to warm and cool for centuries, including changes in activities on the sun, 93 million miles away and wholly beyond the jurisdiction of the Kyoto treaty.

According to these climate scientists, human activities have very little effect on the climate, compared to many other factors, from volcanoes to clouds.

These climate scientists likewise debunk the mathematical models that have been used to hype global-warming hysteria, even though hard evidence stretching back over centuries contradicts these models.

Take a look. I liked this documentary so much that I purchased the DVD of it.

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News

Poll: More people believe in an afterlife than believe in God

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J. Warner Wallace tweeted this study from the Institute of Education at the University of London.

Excerpt:

More people may believe in an afterlife than believe in God, according to a nation-wide survey of Britons born in 1970.

Almost half – 49 per cent – of those surveyed earlier this year by the Institute of Education, University of London believe that there is ‘definitely’ or ‘probably’ life after death. Only 31 per cent have said that they believe in God, either without doubts (13 per cent) or with some doubts (18 per cent).

Researchers at the IOE’s Centre for Longitudinal Studies are canvassing more than 9,000 members of the 1970 British Cohort Study. The study, funded by the Economic and Social Research Council, is following a group of people born in England, Scotland and Wales in spring 1970. It collects detailed information on many aspects of people’s lives including health, wellbeing, and financial circumstances. The latest survey, at age 42, is being carried out between May and December.

While members of the 1970 cohort have been asked about religion at earlier points in their lives, the current survey is the first to make the important distinction between religious upbringing, affiliation, practice and belief.

An analysis of the first 2,197 responses shows that 32 per cent of interviewees were not brought up in any particular religion, and an equal number said they were raised in the Church of England. Fourteen per cent said they grew up as Christian (no denomination) and ten per cent as Roman Catholic.

However, when asked if they currently see themselves as belonging to a particular religion, 47 per cent said no, followed by 21 per cent who said the Church of England. Fifteen per cent felt they were Christian (no denomination) and seven per cent said they were Roman Catholic.

Seventy-four per cent of respondents reported never or rarely attending religious services, followed by 16 per cent who attend services less than once a month. Seven per cent attend services once a week or more.

I’m pretty sure that you need to have a God there if there is an afterlife, because if there is no God, then there is no grounding for souls that can survive the death of the body. I think that what’s going on here is that people like the idea of having an afterlife, but they don’t like the idea of being accountable to God. That’s why they hold two mutually incompatible beliefs.

I think that this study tells us a very important thing about how people view religion. Somehow, people have gotten the mistaken impression that religion is like choosing what to eat or what to wear. You choose what you like. You choose what makes your family and friends like you. But imagine if doctors, engineers and scientists operated like that. It strikes me as psychotic to choose a religion based on your feelings. Religion, at the minimum, is a set of propositions about the way the world is. To believe in a religion is to accept it as true, and to take on the epistemic and moral obligations – to know true things and to do right things. To anyone who denies that religion is like any other form of knowledge, then you need to prove that. In my own religion, we have testable claims that can be evaluated using the methods of logic, history and science.

You know this study reminds me of a formative experience I had when I was younger. I remember talking to a project manager when I was a brand new software engineer, and her telling me that she had grown up Baptist but it was “too strict” so she became an atheist. Also, God had allowed her to fall off her bicycle when she was young and she chipped her teeth. So she knew there couldn’t possibly be a loving God. But anyway, she asked me if I believed in souls for animals. I surveyed a few philosophers and concluded with J.P. Moreland’s view, that animals don’t have souls. She said that her dog was going to Heaven when she died. I told her, look I would like it if my cockatiel went to Heaven (he is was about 8 then, and is 24 now) but I have to accept what is true. She looked at me like I was crazy to say such a mean thing. I will never forget that conversation. Back then, I had limited exposure to church and didn’t realize that most Christians are exactly like her. We really need to stop with the postmodern, relativism, universalism and get back to reason and evidence.