“If we tax investment in job creation more, you will get less of it…This looks like to me not a very good sign, because it looks like the President wants to move down the class warfare path.”
Class warfare is as good a description as I’ve seen. Raising taxes on “millionaires and billionaires” won’t bring in very much revenue when compared to the $1.5 trillion that is needed under the president’s “plan.”
The clearest signal that the president’s plan is not about fixing the deficit? From the Tax Policy Center, as reported in the Wall Street Journal:
..all households with incomes of more than $1 million…are expected to pay an average of $845,000 [in income tax] this year…even doubling their tax burden would raise just $19 billion a year at a time when deficit reduction is being measures in trillions of dollars.
So, the president’s plan comes down to, “make those rich bastards pay.” But adding taxes to those who are most likely to invest in new businesses, and hence, new jobs, is counterintuitive as a means of reducing unemployment. As a means of reducing the deficit, simple math is sufficient: $19 is about 1.3% of $1.5 trillion.
But it feels good, doesn’t it, to whack at the hobgoblin of “the rich?” A pity it won’t achieve the desired result. Unless the desired result is for the president and his leftist cronies to wallow in that oh-so-good populist feeling.
The conclusion: the president, once again, places his leftist ideology ahead of the nation’s economic health. His plan will likely be D.O.A. in the House of Representatives, which will be a boon for Democrat senators, who may be spared the need to go against “their” president to defeat it.