Thursday, November 15, 2012

Give Obama And The Democrats Their Wish On Raising Taxes On The Rich

Last Friday, I caught the first 40 minutes or so of the Rush Limbaugh radio talk show.  Early in the show he seemed to agree with a conservative writer who had written the following:  "...just get out of the way, Boehner and McConnell. Give Barry & Co everything they want; and let a corrupt media chronicle it. Harry 'Dingy' Reid wants to change the filibuster rule so tell them "No Need!" we are just going to vote 'present'.  Rush followed up by saying "He has a point...'

Well, I'm not sure that we should give a blank check to Democrats to do anything they want; but, I do think we've lost a lot of ground on the issue of tax cuts for the rich.  It appears that the general electorate believes Barack Obama when he tells them that the rich should pay their "fair share" by paying higher taxes, and, that "they won't miss it [meaning the money]", and further, that the economy flourished under Clinton when taxes were higher for the wealthy.  This Obama win was clearly borne out by the fact that, in the exit polling, 60 percent said they favored higher taxes on the rich.  In California, 54% of the voters approved Prop 30 which primarily target the higher taxes on the rich.

Of course, anyone with a modest understanding of how our economy works knows that raising taxes on small businesses and the job creators in our country will only result in an even weaker economy than we have now.   Maybe another recession.

As far as the higher taxes under Clinton is concerned, their impact was dwarfed by the fact that we were in a complete tech revolution in this country and in the industrialized world.  Many falsely believe it was just because of the dot-com explosion but, in fact, it was in everything tech; including PC's, home software apps, video gaming, cellphones, medical equipment, and so on.  More importantly, a lot of people who had never bought a stock before were making big money buying almost anything tech.  Of course, all this created an economy that wasn't "apparently" being hurt by Clinton's higher taxes.  I say "apparently" because as soon as anything dot-com came to a screeching halt -- this following the burst of the dot-com bubble in the stock market -- the economy headed south; with Clinton eventually handing a recession over to "W" Bush.  A not-so-small point that Democrats and the media seemed to have forgotten about those supposedly golden Clinton years.

Personally, I say: Republicans step aside and quit trying to hold the line on keeping the Bush tax cuts for the high income earners.  Only, then, will American voters learn the lesson that tax increases on anyone have consequences.  Even if those consequences have to be another recession and higher unemployment.  Once and for all, let's take the "tax cuts for the rich" issue out of theoretical argumentation and prove which political party is actually right. Maybe, then, in the 2014 mid-term elections, the Republicans can retake the Senate and reverse the mess that will have been created with Obama's higher taxes and ObamaCare.  It could also pave the way for a Republican president being elected in 2016.

On last thing.  If higher taxes were so great for the economy under Clinton, why shouldn't we be calling for all the tax rates that existed under his presidency?  In other words, let "all" the Bush tax cuts expire.  Surely, this economy would take off like a rocket!

--- United State Senate Democrats: On Taxes, The Voters Have Spoken

No comments: