Want Economic Prosperity for Everyone? Cut the TOP tax rates, not the bottom.
The biggest problem with President Obama’s view of tax policy is that he, like most Democrats, sees the tax code not as a way to pay for government, but as a way to redistribute wealth. Note how often Obama talks about who “deserves” or “needs” a tax cut. But need or “fairness” is irrelevant – the purpose of any tax plan should be to effectively fund legitimate government activities, NOT to function as a massive welfare program. Yet that is exactly what America’s new brand of socialist Democrats believe.
The problem is that by financially raping our most successful citizens in order to subsidize the least successful, Obama and the Democrats are sowing the seeds of economic disaster. Throughout the last century, countries that have followed the same “tax the rich” path have seen their economies disintegrate – the current woes besetting much of Europe today are the predictable result of such policies.
But history has given us the blueprint for economic prosperity. After England’s failed experiment with massive taxes and government control of every major industry after World War II, the Brits had the good sense to finally elect Margaret Thatcher. She immediately took bold steps to return most industries to private sector control, and cut the top marginal tax rates. The result was a short period of painful readjustment, followed by a dramatic upturn in prosperity. Sadly, once Thatcher was gone, it wasn’t long before the socialists regained their influence, dragging England back into the economic doldrums.
Here at home, the disastrous affect of the presidency of Jimmy Carter was finally ended when Americans voted (in a landslide) for Ronald Reagan. And what did Reagan do? Did he pander to the parasite class by cutting the already low taxes of those at the bottom of the ladder, as Barak Obama persists in doing? Did Reagan spend the first 3 years of his presidency whining about “inheriting” a bad economy. Absolutely not.
On the contrary, Reagan immediately slashed the top marginal rate from a ridiculously punitive 70% to just 28%. The result was one of the longest and most prosperous recoveries in history. The so-called “Clinton economy” that Democrats are so fond of referencing was due in large part to the actions of Ronald Reagan.
But more importantly, Reagan did not feel any need to apologize for cutting taxes on the top earners – instead he was able to clearly and cogently explain to the American people the reasons for his actions. And they listened. They also elected him to a second term by another landslide.
Fast forward to today, when it is almost impossible to find a single Republican who has the guts to propose cutting the top marginal tax rates. Even Mitt Romney, whose business acumen surely has taught him the value of cutting taxes on job creators, and how doing so benefits those in the lowest brackets, seems unable to make the case to the public.
Obama’s latest proposal is to keep the so-called “Bush era tax cuts” for everyone EXCEPT those making over $250,000 per year. In reality, the best course would be the opposite – let the cuts expire for everyone BELOW $250,000 – in fact, we should lower their taxes even further, and make them PERMANENT. Why? Well, first, such a move would genuinely stimulate business investment and hiring. Second, we have gotten to a point where the bottom half of working Americans already pay NO income taxes as it is, so bringing these people back into the tax base would give them “skin in the game” – no longer would they be “freeloaders” with no stake in tax policy.
Note that Romney only meekly objects to Obama’s latest proposal to retain tax cuts on the LOWEST brackets, rather than the highest. It’s as if Republicans have been so intimidated by the false charge of supporting “tax cuts for the rich” that they can’t even manage to explain to voters the proven economic benefits of cutting the top marginal income tax rates, as well as the capital gains tax – jobs. Ironically, if you really care about those at the bottom of the economic ladder, the best thing you can do is cut taxes on those at the top.
The old saying is absolutely true, “I never got a job from a poor guy.”
Now, I’ll grant you that Romney’s tax proposal that, among other things, drops the top marginal rate to 25% is certainly a great start, but how many average people even know about it, let alone understand why it is a good idea? If we are ever going to extricate ourselves from the current Carter-like malaise we are in today, we need BOLD and AGGRESSIVE leadership, not timid and tepid defense of “me-too” political compromises.
Romney, and every other Republican, should be shouting from the rooftops the need to slash the taxes on the those who are most likely to create jobs. If they don’t, the parasite class will re-elect Barak Obama, as well as a whole new crop of anti-free market socialist Democrats. And THAT would be disastrous for everyone.
John Caile – HAVEGUNWILLVOTE