Monday, October 29, 2007
Higher Rates/ Lower Revenues
Wrangel and the Dems have announced a gigantic tax increase in their quest to 'fix' the Alternative Minimum Tax, and one that makes the tax system much more steeply progressive.
They even describe giving increased 'tax refunds' (aka handouts) to people who dont pay taxes as a 'tax cut'. Its buying votes. Steeply skewing the tax system to milk the productive and hand out free goodies to all and sundry is a sure recipe for decline and poverty. The government's total take of the national income will go up even if you dont factor in the fact that the GNP will spiral down as a result of this bill.
How can these morons (the libs) be aiming to make the same disastrous mistake all over again? High, steeply progressive tax rates crush the economy, raising the cost of existing government giveaway programs. The European Socialist countries have 10-15% unemployment rates and zero growth. There is no example, either now or any time in history, where the policies advocated by the Dems today have not added up to economic disaster. The people who will be most affected will be the Boomer/Yuppies, smugly secure, clutching their fat 401k statements and looking at the plump, well-funded pension plans that they are a part of. That wealth and the equity in your house (already under attack by soaring property tax rates) are the most obvious targets for a greedy, desperate welfare state trying to staunch a Niagara of red ink and seeking ever more harsh means of wealth redistribution. The same dolts that complain about their rising property taxes and declining schools will happily march to the polls and vote for the party that promises free goodies at the expense of someone else. These same people will be standing in the soup line wondering what went wrong.