Liberals are so funny sometimes. They want to tax, tax and tax some more.
And they would rather use “taxes on the rich” as a political weapon than actually increase federal revenues. Or so it seems.
Liberals decry all the “trillions” of dollars that the wealthy are hoarding and want to stick it to them even more by raising taxes, not on the money they are hoarding, because in America we only tax income. So far. Although in the UK they are already talking about taxing money you have sitting around in a bank or under the mattress. The wealthy have scaled way back on their investing because they fear the confiscatory tax policies of the Progressives. And further taxing that little bit of investment will only serve to make the wealthy pull all of their money out of investments – and out of the economy.
What we really need is for the wealthy to invest more of their money. To get up off that green stuff. Spread it around.
And the way to get them to do that is by lowering the taxes and making the risk of investing more attractive. That way, the money that is sitting in a bank somewhere not doing anything will get back in curculation and provide some much needed jobs for the 23 million Americans out of work or those who have given up looking.
The only way they can actually get a tax break is by risking more of the money they are hoarding.
So lowering taxes on investment income is only a tax break if the people with the money actually put it back in circulation. Then the tax man can reach it.
And unlike raising taxes on their income, they really don’t mind risking more of their money if they are not going to get soaked by Obama if their investment succeeds. But the ting is, even if they lose money on an investment and never have to pay taxes on it, the money is still back in circulation.
Let’s call it voluntary redistribution.
The “trick” here is to get the money flowing again. The money we borrowed for the Obama “stimulus” idea failed. Borrowing more money will not make the wealthy get back into the economic game on the scale we need. The only way to do that is to make it attractive for investors to invest.
With the dark cloud of Obama’s tax policies looming on the horizon, the rich will continue to hoard money. There is nothing Obama can do at this point to convince those with money to put it back in the economy. After getting to know him for the last 4 years, the window of opportunity for him to revive the economy has slammed shut.
Increasing taxes on investment will produce less investment and cause more monetary hoarding.