EDITOR OF REDSTATE
Obama admits using tax policy to promote “fairness” not to raise revenue
Using taxes on investment to make things fair will only make people poor.
Ladies and gentlemen, when Barack Obama succeeds, the country fails. Look no further than this interview with Charlie Gibson:
GIBSON: All right. You have, however, said you would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, “I certainly would not go above what existed under Bill Clinton,” which was 28 percent. It’s now 15 percent. That’s almost a doubling, if you went to 28 percent.
But actually, Bill Clinton, in 1997, signed legislation that dropped the capital gains tax to 20 percent.
GIBSON: And George Bush has taken it down to 15 percent.
GIBSON: And in each instance, when the rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down.
So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?
OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness.
There you have it. Barack Obama is not interested in raising revenue to fund the government. He is interested in to keep people from making money — because it is fair.
What’s worse is Obama goes on to prove how terrifically academic he is and has no grounding in real world economics. Gibson challenges him again:
GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.
OBAMA: Well, that might happen, or it might not. It depends on what’s happening on Wall Street and how business is going.
Put it to you this way Barry: business won’t be going on at all on Wall Street if you jack up the capital gains tax.
The only refreshing thing in this whole exchange is Obama admitting he is not using tax policy to raise revenue, but rather to distribute fairness across socio-economically divergent pools of people.
Other than that, though, it is scary that the guy just over half the nation thought was qualified to be President has zero sense when it comes to fostering a healthy economy.