Left pours on its tax the rich snowjob
President Obama’s only hope for winning a second term is through class warfare, and the media will be only too happy to help him in this endeavor. Far too many people believe that all our financial problems would be solved if the rich were forced to pay their fair share.
According to IRS data, the top 5 percent of taxpayers have annual income over $160,000, earn 35 percent of total adjusted gross income and pay 59 percent of the total income taxes. In 2008 this group paid $606 billion in taxes. If they were taxed at 90 percent of their income they would pay another $2 trillion in taxes. This amount would wipe out the annual deficit with $400 billion left over to retire the national debt in about 50 years.
Sound too good to be true? It is.
Even if this punitive tax rate of 90 percent had no impact on behavior (which is a pipe dream), the $2 trillion sucked out of the private economy represents 88 percent of the annual private investment which allows the economy to grow and create jobs.
The economy would not continue to just stumble along it would take a nose dive.
The answer is to cut government spending to the point where tax revenues will not only pay for current spending but will gradually pay down the national debt.
In order to prevent a near term increase in unemployment, the spending cuts must take place over a period of several years to allow a growing private economy to compensate for the decline in government spending.
Republicans must launch and maintain a massive campaign to educate people about these economic facts of life. William H. Clark Springboro, Ohio