They think that taxing "them" (big oil, the rich, big pharma, etc.) will exact revenge for the libs inability to carve out a successful life for themselves. Their well-intentioned legislation over the years to improve the condition of the middle class and low income earners has always had the opposite effect.
DYNAMIC EFFECTS OF PRESIDENTIAL CANDIDATES' TAX PLANS Sens. John McCain and Barack Obama have sharply different visions of how taxes affect economic activity and what modifications to the current system should be made, say economists Stephen J. Entin and Michael Schuyler.
Sen. McCain's tax plan focuses mainly on enhancing economic growth and job creation by reducing marginal tax rates on labor and capital income and by improving economic efficiency. Sen. Obama's tax plan focuses mainly on income redistribution by raising marginal tax rates.
When fully phased in, and all economic adjustments are made:
The McCain tax plan would increase the private sector portion of gross domestic product (GDP) by about 2.7 percent, and the Obama tax plan would reduce it by about 3.5 percent. The difference in private sector capital accumulation would be 15.8 percent or $4.1 trillion in favor of McCain. Hourly wages before-tax would be up 2.2 percent under McCain, down 2.6 percent under Obama. Hours worked would be 0.5 percent higher under McCain, and 1 percent lower under Obama. The dynamic economic response to the McCain proposals would fully offset the cost of his four major tax elements: the lower corporate and estate tax rates, partial expensing, and the rise in the dependents exemption, for a net revenue gain of about $16 billion.
The dynamic economic response to the Obama plan would be to reduce tax revenues. However, his business tax increases ("loophole" closings) would result in higher corporate tax revenues, but not as much as a static revenue forecast would indicate. His increases in the two top marginal income tax rates, in the tax rates on capital gains and dividends, and other marginal work disincentives, would depress revenues, resulting in a net revenue loss of about $53 billion a year.
Source: Stephen J. Entin and Michael Schuyler, "The Candidates' Tax Proposals: Their Impact on Taxpayers and the Economy," Institute For Research on the Economics of Taxation, Policy Bulletin No. 92, October 20, 2008.
The delusional bastard libbies, always looking for something for nothing, seem to believe that taxing businesses into the dumpster will some how benefit them. It is hard to imagine that anyone, even libbies, can be that stupid. Their core problem is greed and envy which seems to blind them to rational thought. Libbies, the lowest form of humanity.
They think that taxing "them" (big oil, the rich, big pharma, etc.) will exact revenge for the libs inability to carve out a successful life for themselves. Their well-intentioned legislation over the years to improve the condition of the middle class and low income earners has always had the opposite effect.
"It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now ... Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus."
– John F. Kennedy, Nov. 20, 1962, president's news conference
"Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government."
– John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964
"In today's economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarges the federal deficit – why reducing taxes is the best way open to us to increase revenues."
– John F. Kennedy, Jan. 21, 1963, annual message to the Congress: "The Economic Report Of The President"
"It is no contradiction – the most important single thing we can do to stimulate investment in today's economy is to raise consumption by major reduction of individual income tax rates."
– John F. Kennedy, Jan. 21, 1963, annual message to the Congress: "The Economic Report Of The President"
"Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort – thereby aborting our recoveries and stifling our national growth rate."
– John F. Kennedy, Jan. 24, 1963, message to Congress on tax reduction and reform, House Doc. 43, 88th Congress, 1st Session
With a top rate now of 35% it's much harder to support the idea that rates are too high.
Since we experienced such strong economic growth during the Clinton administration and balanced the budget as well, we can consider that very strong evidence that tax rates were about right.
And please don't trot out that BS about corporate tax rates being too high. As I've said before, the tax burden matters far more than the tax rate and corporations are taxed much less in the US now than in the past.
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