Honestly, the High-Tax, Redistributive Agenda is that Destructive
Posted by Heather Edwards on September 11, 2010
Larry Gellman writes about the need to be honest about jobs and the economy, and to stop criticizing Obama’s bad economic policies, in his September 8th opinion piece at the Huffinton Post, where he calls on politicians and the news media to stop making rational conversation impossible by “filling the airwaves and print with so many lies and distortions.” Lies and distortions? God forbid that anyone would claim that wealth redistribution is an inefficient mechanism, or that increased taxes will diminish business output and further hurt the economy!
Apparently, even Forbes is guilty of such blasphemy: they argue that an expiration of 2001 and 2003 tax cuts will “sink the economy and kill any hope of a jobs-led recovery.” The U.S. Chamber of Commerce additionally noted that “the most important thing….for the economy is to take action immediately to prevent massive tax increases on America’s consumers and businesses.” With an expiration of the cuts, marginal income tax rates will increase for every taxpayer, as will dividends and capital gains tax rates. But according to Mr. Gellman, the “truth” is that rich people and CEO’s are responsible for high unemployment and the country’s economic woes in general.
Let’s be honest: yes, the economy was bad prior to Obama taking office, but the many-varied reasons for that extend far beyond the claims of the author and are the subject matter of another day’s blog post. However, the tax increases that Obama proposes, which are based on a stated wealth-redistribution philosophy, are empirically proven to lessen capital quantities, which in turn decreases demand for labor and the availability of jobs. The progression is logical: higher taxes, less money for reinvestment and labor, fewer available jobs, decreased purchasing power for the general population, and a continuously stalled economic recovery. Workers wind up bearing the bulk of the tax burden, not wealthy CEOs.
Contrary to Mr. Gellman’s belief, the majority of Americans are not confused about where the truth lies. They don’t need information to be “framed” in a particular way (the implication is that it must be suitable to liberal opinion); they are living the reality, and are smart enough to know that systemic disincentives to growth, such as higher taxes, needs to be adequately addressed. Making the nation’s shareholders and CEOs a scapegoat is far too simplistic, and borders on the irrational. Mr. Gellman, let’s be real when discussing jobs and the economy!
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