Corporate America likes Obama a lot more (despite their rhetoric) than they did FDR. And FDR created more jobs than any other President in US history. And unlike Obama, FDR actually threw corporate executives in jail.

Raising taxes helps in all sorts of ways. But before I tell you why, take note that raising top marginal income taxes has NEVER FAILED to stimulate the economy, increase GDP growth, and lower unemployment.

However, lowering top marginal income taxes has resulted in bubble economies that lead to major crashes each and every time. A major tax cut in the early 20's was followed by the Republican Great Depression of 29. The major tax cuts of the early and mid 80's was followed by the stock market crash of 87. And the Bush tax cuts were followed by The Great Recession.

Once we're in agreement doggy that this is, in fact true, then I can explain why this is the case.

Doggy, it is a logical fallacy to say that because B follows A, it doesn't necessarily mean that A caused B. Some other factor could have played a more major part. This is always the case with economics.

But consistant and repeated results should lead us to some basic conclusions. Below is a graph that tracks tax rates decade by decade to economic performance in the same time period. I took a look at decade long numbers because it helps to see the overall trend, it helps eliminate those outside X factors, and since most Presidencies come in 8 year spans, one can gage one set of polices with another.

I'll let you make your own conclusions.  

-- Modified on 12/21/2010 4:01:54 PM

Here is a graph that shows the share of income among the top 1% compared to the bottom 80%. Take note that they seem to have inverse relationships. As one goes up the other goes down, and vice versea.

Consumer spending is some 70% of all demand in the US economy. What does this graph tell you will happen to consumer spending if tax rates are lowered on the wealthy?

-- Modified on 12/21/2010 4:08:29 PM

Here is a graph showing federal revenues verses expenses after the last three major tax cuts (one in '81, one in 86, and one in '03.

Note that the typical conservative talking point is that cutting taxes stimulates the economy, leading to more economic activity, which results in more total tax receipts. Or as I like to call it, an idiotic theory that Art Laffer drew on a napkin.

But regardless of what I think of it, look at what actually happened when those tax cuts went into place.

There will be no democrats in office.its not by choice but out of desperation. If obama can he would screw,us, but he cant because the protectors of constitution wont let him. Tea party is alive and well and we all know who is leader,, alaska finest. So nice to have all these liberals threading water.so ww,pripous,ben,gagambler, can stick it we know where. Obama is doing this only to win,another election, rem em ber tea party people, to all people forget democrats, switch to tea party