Since then, Obama has raised taxes on everyone and admitted he was completely wrong to blame the Bush tax cuts for the government debt problem by reversing course and extended the Bush tax cuts.
But he also promised that he would work hard in the last two years of his term to achieve his goal of increasing the tax on the ‘wealthy’ – because he believes it would increase the fairness – between the rich and the poor.
Despite Obama’s many economic policy failures, reflected in the high unemployment rate and massive government budget that is nearly completely out of control, his cunning use of words like ‘wealthy’ and ‘fairness’ resonate with people’s natural instinct to envy our neighbors.
The obvious solution is to increase the education of the public with the truth about these lofty claims to tax the ‘wealthy’.
The truth is that envy creates poverty and decreased prosperity.
Here are five reasons …
- Higher tax rates discourage wealth production, by discouraging productive behavior. Higher taxes on saving, investing and income, cause people to avoid these things and leads to lower living standards for everyone and lower revenue collected by the government – forcing cuts in government programs. Raising taxes does not help the poor, but rather increases poverty.
- Higher tax rates generate less government revenue, as shown by the Laffer Curve and proven several times in history as illustrated in the video below.
- Progressively higher tax rates on the rich, hurt the poor the most. As the poor suffer from the increase in unemployment and drop in non-profit contributions by the rich, and these conditions cause a drop in higher education of the poor and middle-class, which prolongs there income level perhaps by an entire generation or more.
- Higher corporate and income taxes drives jobs overseas, as the global economy forces nations to compete for labor and capital. The U.S. is already among the highest nations for corporate tax rates and the evident of job losses can be found in every industry. Obama’s tax plan is would increase the loss of jobs, increasing the unemployment and poverty.
- Progressive tax rates, lead to higher tax rates on everyone. Because before the money is ever collect, local and federal governments begin expanding programs and spending. And when the money doesn’t come in as projected because of the previous four points that I made, the politicians turn to higher sales tax and property tax to make up the difference.
Obama’s class workfare and progressive tax rates are the source of the problem. It is the already high tax rates that continue to punish the poor and increase the poverty in America. Obama’s war on the rich are punishing the poor and the middle class.
Here is a video from the Cato Institute that further explains.