This attack on the rich and business by President Obama and other liberals is the cause of this economic malaise we find ourselves in. There is zero data to support the types of policies that Obama espouses, and plenty of data that show raising taxes on the top earners in America results in reduced hiring, reduced tax revenue for the government, and a reduction in overall economic activity.
Here are four case studies you can research:
John F. Kennedy
John F. Kennedy dropped the tax rate on top earners 15% and reduced corporate taxes 5%. The result was an increase in the amount of money flowing into the federal treasury. Economic activity boomed after the tax cuts went into effect.
– John F. Kennedy, Nov. 20, 1962, president’s news conference
“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”
The State of California
California was facing a budget deficit in the early 90s and Gov. Pete Wilson raised taxes in 1991 to cover it. But, this increase in taxes did not result in a corresponding increase in revenue to the state treasury; the result was a decrease in revenue in 1992-93 (down 2.1%) and again in 1993-94 (down 2.1%). Only after the tax hikes expired in 1994-95 did the state see an increase in revenue to the state treasury. California provides a rich history of bad tax policy that has resulted in years of budget deficits. Ironically, in spite of this history, Governor Jerry Brown is once again proposing a tax hike on the rich to cover his states deficit woes. We now see some of the fallout in California for decades of punitive tax policies. California is swimming in red ink, and the wealthy (along with their businesses) are moving out of that state in record number.
President Jimmy Carter
Our economy during the Carter administration was a mess. Marginal income tax rates on the wealthy were at 70%. Although Carter had campaigned for office on a platform of cleaning up our tax system, he never suggested that the tax rate of 70% on the wealthy was one source of our economic woes. Carter also increased the capital gains tax rate 10%. This along with an energy policy that rationed the sale of gasoline and other ill conceived policies led us into a deep recession.
President Ronald Reagan
Ronald Reagan dropped the tax rates on the wealthy from 70% to 28%. Not only did Reagan lower taxes on the wealthy, he simplified the tax code in general and reduced taxes on businesses. During Reagan's presidency the unemployment rate dropped from 10% to 4%. The dramatic changes in tax policy under Reagan ushered in the second longest peacetime economic expansion in U.S. history. Interestingly, revenue into the U.S. treasury increased; the revenue continued to increased until George H.W. Bush increased tax rates in 1990.
It may make liberals feel good to soak the rich, but all the data we have and the historic precedent indicate that tax hikes on anyone, particularly the wealthy and business, only hurt Americans of all income levels by slowing down our economy, increasing unemployment and making it more expensive to live and do business here.
This video shows that soaking the rich to bail us out of our economic problems and our budget woes is more than not effective, it isn't even possible...