Tag Archives: Shortfall

Commentary

Can we tax the rich enough to pay for all of Obama’s spending?

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The libertarian Cato Institute says no way. (H/T ECM)

Excerpt:

Funding the new health-care plan on the backs of households making $200,000 or more per year would require permanently increasing their annual total tax payments by about 50 percent. So, for example, a household that currently pays $50,000 in federal income taxes would need to pay another $25,000. Remember, however, that Social Security and Medicare already face enormous shortfalls. Shoring up these programs — another Obama campaign promise — would require collecting 328 percent more tax revenue from the rich. No, we didn’t forget a decimal point: That is three hundred and twenty-eight percent.

And what follows from taxing the rich?

[…]A major tax increase causes the tax capacity of the rich to shrink gradually as two factors kick in. First, many of the households falling into Obama’s “rich” definition are married couples in which both partners are working professionals. When tax rates rise, the lower-earning spouses in these couples tend to work less. Often, they quit work entirely. Second, many of the “rich” are budding entrepreneurs and small-business owners. They finance their operations using their own after-tax income, or with after-tax resources from family and friends. Small-business innovation is the fuel for long-term economic growth. In fact, many of the largest companies in the United States today were either small or nonexistent just 25 years ago. Killing small business kills the American economy.

Why do ivory tower socialists like Obama seem incapable of thinking through the consequences of his utopian policies for all parties concerned? You can’t assume that people are just going to sit there and let you rifle through your pockets to redistribute their money to everyone who voted for you.

(By the way, if you are thinking that “preventative care” will cut medical costs, think again. The CBO says no way.)

News

California Democrat leader says free speech is terrorism

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Speaking out against tax increases is terrorism!
Speaking out against my tax increases is terrorism! Give me your money, and shut up!

Stop the ACLU links to this LA Times interview with California Speaker of the House Karen Bass. As you know, California is in the worst financial crisis in all 50 states. Karen is very angry that Republicans are pressured by voters to vote against tax increases. She thinks that Republicans should vote like Democrats, regardless of what their constituents want.

Excerpt:

How do you think conservative talk radio has affected the Legislature’s work?

The Republicans were essentially threatened and terrorized against voting for revenue. Now [some] are facing recalls. They operate under a terrorist threat: “You vote for revenue and your career is over.” I don’t know why we allow that kind of terrorism to exist. I guess it’s about free speech, but it’s extremely unfair.

See, California is running a 24.3 BILLION dollar deficit, which is half the deficit that Canada is running this year. It’s so bad that they are issuing IOUs to contractors. And the Democrats think that tax hikes are the answer. By the way, her background is “community organizing” as well.

Hot Air has more here:

There’s a lot of stupidity and tyranny locked into those few words.  The First Amendment guarantees the right to petition the government for redress of grievances, even apart from the “free speech” issues Bass casually discards.  Elected politicians are accountable to the people who elect them in a free society.  Politicians do not acquire lordly status when they go to the Assembly, or anywhere else.

Usually, politicians are smart enough to at least pay lip service to getting feedback from their constituents.  Instead, Bass calls them “terrorists” for … what?  Calling their representatives and telling them not to raise taxes even higher, in the state with the sixth-highest per capita tax burden in the nation?  Expressing their opinions?  Telling politicians they won’t get their support if they vote for a tax hike?  That’s democracy, not terrorism, although I’m hardly surprised that Bass can’t tell the difference.

…Beware the politicians who consider dissent terrorism.  They’re either idiotic beyond belief, or tyrants waiting for an opportunity.  Bass might just be both.

Remember when dissent was the highest form of patriotism? Yeah, now dissent makes you a terrorist. This is what secularism and socialism amounts to: disagree with me and you’re the worst person in the world and anything I do to you is morally justified.

There is no difference between communists in North Korea and communists is the United States. They believe the same things. They are just on different stages of the same road to serfdom.