By Daniel B. Kline
While the nation struggles with unemployment and economic problems, our delusional president clings to the idea that raising taxes will solve the problem. President Barack Obama refuses to back away from the idea that it's okay to raise taxes on “millionaires,” a word he not so subtly uses as a swear – as if success happens by accident and anyone with money does not deserve it.
Raising taxes takes money out of the economy. Whether you raise taxes on rich people, poor people or anyone in between, you take dollars out of the economy and put them into a government sinkhole.
Obama preaches the notion that rich people don't pay their fair share. Never mind that we have a graduated tax code and the more you make, the more you pay, our president wants those of us who are not millionaires to believe that our problems can be solved by confiscating more from those who have been fortunate enough to get wealthy.
Of course, we should close loopholes in the tax code that allow businesses and certain people to avoid being taxed. Everyone should pay their fair share, but nobody should pay more than that.
Our president would be better off preaching lower taxes for everyone. Historically, lower taxes equal higher revenues for the government. That's because if we put more dollars into the hands of the people who actually earn them, those people find a way to spend them.
At the bottom level that might mean some small luxury spending – maybe a movie ticket or modest meal out. As we climb up the economic chain, though, more dollars in pocket means increased spending. Perhaps a middle class couple will finish their basement or maybe they will start a small business. At the the top of the chain, we might see luxury goods purchases or larger companies being started.
Put more dollars into the our wallets and the economy cures itself. Raise taxes to fund misguided federal programs (more bailout money anyone?) and nothing improves. To fix the economy we need less government, not more.
Instead of raising taxes, how about trying something different and lowering all taxes by 10%? Cut income taxes, sales taxes, capital gains taxes, taxity taxes, the tax on taxes and any other taxes I might be forgetting.
I, for one, promise that if you put more of the money that I earn – with absolutely no help from the federal government – I will spend it. Put 10% more cash in my pocket and I'll go out to dinner more and I'll just buy more stuff.
If everyone does that (what a surprise) that money creates jobs and brings in tax revenue. Doesn't that make more sense than more confiscatory taxes where the money disappears into Washington?
If what we're doing doesn't work, why wouldn't we try something different?
Daniel B. Kline's work appears in over 100 papers weekly. He can be reached at email@example.com or you can see his archive at dbkline.com. You can listen to his podcast or buy his book, Worst Ideas Ever, at Worstideasever.com.