Okay, so this debate has been going on for over a week now in the Beltway.  All this talk about raising the debt ceiling, and how it has to be accompanied by revenue measures and spending cuts. Revenue measures, by the way, are code for tax increases.  So why isn’t anyone using the data I’m about to present to you for their argument?  In recent years it’s becoming more and more evident that tax rates don’t determine the tax revenue, but the production of the economy. This is not, and never will be, about raising revenue, it’s symbolic.  Putting a tax on corporate jets, yachts, top incomes, etc only hinders the economy. Putting taxes on anything only discourages that behavior. it’s not just the top income earners that get discouraged.  (We can talk about how progressive income taxes suppress the wages of lower income earners later.)  Don’t get me started on how many jobs were destroyed when the government decided it would be equitable to tax the yacht industry. There’s plenty of middle class people who assemble the hundreds of thousands of parts that go into assembling a yacht for John Kerry. The government is taking money that was earned by hard working people and putting it in the hands of a grossly overspending government.

Look, Bush wasn’t my favorite president either, but the guy had annual deficits that ranged from $200-500 Billion/year.  And that was considered unprecedented. The new incompetent in Chief is posting TRILLION and a half deficits his first few years in office every year with a horrible economic report to show for it. A similar deficit is expected for next year.

$1 Trillion was spent on the stimulus (after inflation) and even still over half of the jobs created since President Barack Obama stepped into office have been created in Texas.  I’m charging all of my readership to please find out how much of the stimulus money was given to Texas. I would bet my bottom dollar that a very small percentage went to Texas.  This is all about giving the Democrats some sort of fairness or bully issue to campaign on for 2012. “Look, I made those fat cats pay more to help with the economy.” And at the same time it’s spun to pose Republicans as being cozy with the rich.
I’ve got news for many of you.  The top 10% of income earners pay around 70% of all the taxes the federal government takes in.  Fairness means something else to everyone, but don’t most of you think that’s fair? Or if you don’t you probably are like me and think it’s unfair that the bottom 50% of income earners pay nothing.

Read it and weep, here’s why raising taxes isn’t the solution:

There have been dozens of tax code reforms, tax rate changes, restructuring, etc. And regardless of all these efforts to raise more revenue the government has almost always taken in 19% of gross domestic product. The evidence is clear that the ‘revenue issue’ is not a ‘rate issue’ but a growth issue for the economy.  Clinton-Worshiping-Democrats of anyone should know this better than anyone.  During what was almost surely the best decade ever in the stock market and we had surpluses.  Ever wonder why? Because when unemployment is low and the economy is growing, you don’t have this little problem of 5 or 6 MILLION unemployed people who are paying nothing in taxes because they aren’t earning any money or producing anything. Much less buying things like they used to and fueling the economy even more.  If you don’t know this yet, know it now, we have a mainly consumer and service based economy. When you slow consumption with unemployment it takes a double toll on the economy.  I don’t think we can reasonable expect unemployed people to keep buying the same standard of groceries and other consumer goods they used to buy when they were employed.

I have to think that putting the now 7 million people back to work has to be a better strategy than collecting a few percent more income from a few hundred thousand millionaires. The numbers are just astronomically significant to where the statist agenda is.  Money is better off in the hands of the government than successful people who work every day to produce goods and services that the economy wants.  I’ve got news for you, the only reason rich people are rich is because they keep doing the things that made them rich. Ditto for the poor.

Would you believe the president mentioned we should extend unemployment benefits again? You can already collect benefits for 99 weeks.  How much longer should people be able to collect unemployment? Forever? Some democrats off of their rocker might agree with that.

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