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Happy Tax Day – Taxing The Rich Still Won’t Work

Posted by cann0nba11 on April 15, 2013

For some reason, the president and his supporters believe that the solution to our financial woes is to simply have rich folks like him pay just a little bit more in taxes. They don’t see massive governmental overspending as overspending. And, if you consider the fact that the president expects Americans to think that the impact of a 2% sequester cut will cause mass hysteria, you are also expected to accept the idea that current government spending is just barely enough to keep America going. So how much will raising taxes on individuals?

Take a look at this chart:Taxes3

In 2010, the Federal budget called for $3.6 trillion in spending with the expectation of $2.3 trillion. Of that $2.3 trillion, $950 billion (47%) came from individual income taxes. Within this group the top 10% of earners (people making more than $116k/yr), paid 45% of all personal income tax revenue, totaling $427B.

Let’s put aside for the moment the obvious question of “why does our government need to spend, in one year, $1.3 trillion more than it expects to take in. And, let’s also ignore the fact that this single year of governmental overspending costs more than ten years of those evil Bush “wars that we couldn’t afford.”

Taxes4

The chart above shows that even if we double the tax rate for the top 10% of taxpayers, it would have only a modest effect on the deficit, the gap in spending versus revenue would still be $800 billion. I think it is important to note that even that $800 billion dollar gap after soaking the rich and middle-income Top 10%-ers is still more than twice than that of any previous president, with the single exception of the massive bailout spending authored by Democrat-controlled Congress and signed by lame duck president Bush in his last year.

deficit

Today, Obama’s new budget (his first in four years), calls for spending $3.7 trillion with only $2.4 trillion in revenue expected. Yes, every year this administration has offered trillion dollar deficits. This year it’s a gap of $1.4 trillion. For some perspective, even if we doubled EVERY American’s taxes (from $950B to $1.9T), we would still have a gap of $500B just for this year. And that $500 billion gap is still more than any previous president.

Bottom line, Obama math doesn’t work. We cannot tax our way into prosperity. If you get results from stimulus, the results go away when the stimulus funds run out. We need real economic change, not divisive ideological rhetoric. We need to stop arguing about gay marriage. We need to stop legislating useless anti-gun legislation. We need to start using our brains.

If you think that we can fix our problems by taking more money away from Americans, you are not opening your eyes, you are letting emotions cloud rational thought. There is simply NO way that asking the rich to “pay their fair share” will have any impact on our financial situation.

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