Freedom New Mexico
President Barack Obama pledged Tuesday to raise taxes on the rich, pitching it as a way to reduce the deficit while protecting programs that help children, the elderly and the most sympathetic members of society.
He said opponents would oppose tax increases for the rich as an “article of faith,” and a matter of fairness.
“I don’t need another tax cut. Warren Buffet doesn’t need another tax cut. Not if we need to pay for it by making seniors pay more for Medicare,” Obama said, predicting that most wealthy Americans would agree with him.
That may be the case. Buffet, Bill Gates and other multi-billionaires have become famous for saying “raise my taxes.” They can so easily afford it.
The speech was moving. It was delivered in such a convincing manner that anyone who disagreed with it may feel like a orphan-loathing, puppy-kicking sociopath who wants to starve old people in order to make billionaires even happier.
Unfortunately, it is not that simple.
Obama spoke about the need to invest in important causes, such as clean energy and pharmaceuticals. Then he explained that in China, “businesses” are investing in research labs and solar facilities. Yes, in communist China the government counts on “businesses” — not government — to invest in that which may have value to the people and government. We weren’t really supposed to process the word “businesses,” because Obama was using his statement to sell the idea of our government investing more in these causes.
In China, where capitalist prosperity is a relatively new economic engine, government leaders have not developed an illusion of government creating wealth. That’s the failed system China is leaving behind.
Yes, the multi-billionaires of the United States can easily afford more in taxes without feeling it personally.
But they will have less money to invest in clean energy, research, innovation, production and speculation of all sorts. They will put more of the wealth they’ve created into government, and less into ventures that create private-sector jobs and shared prosperity — which are the only source of revenue any government has, once we get past the illusory value of fiat-cash production and debt.
Obama spoke to the hearts of Americans who do not want to see themselves or their loved ones forced to sacrifice. He spoke of tax cuts as expenses to government, in order to create a sense that government grants millionaires and billionaires the wealth they have earned. No sane individual wants to see the elderly uncared for, or to see children starving in the streets, especially if it is for the cause of government giving more to the rich.
But we cannot reduce debt or grow the economy by reducing the liquidity of the wealthy. We should not justify it by indulging in a mythical concept that says government must “fund” the act of leaving money in the hands of those who have earned and produced the most.
And we mustn’t forget that the vast majority of the wealthy whom Obama will target for tax increases are not millionaires and billionaires. They are small business people and CEOs with six-figure incomes and small numbers of employees. They are people who invest in their businesses everything they can, creating new jobs for additional taxpayers.
To raise taxes in this economy is like a business raising prices in response to sluggish sales to customers with less to spend. It won’t work. It will result in a downward spiral, which is what we can expect for the American economy if Obama succeeds at raising taxes on any sector of an economy that’s struggling to survive and produce.