Reclining Right 12/16/2010

What’s going on with the Republican leadership?  Don’t they have anyone who can articulate why letting the Bush Administration tax rates expire on New Year’s Day means that the lowest bracket will increase by 50% (from 10% to 15%) and increasing the rates in the upper brackets mean that the people most able to create new jobs will have less money to create jobs. It will also reduce consumer spending by $700 billion.

Do not expect the Liberal establishment media to explain it either.  They are too busy trying to convince people with limited or no economic education that Conservative Republicans are heartless evil people. They themselves generally have almost no economic history knowledge of what caused the prosperity that lured immigrants to this country.

Do not expect journalist to relate that after the Bush tax cuts were passed, from 2004 to 2007, 6.6 million new jobs were created. Who created these jobs? About half came from small business owners.

How many net new jobs have been created by the trillion dollar Obama/Democrat’s Stimulus spending since they took control of the Senate, House and Presidency?  None, there has been a net loss of 6.3 million jobs. Unemployment has more than doubled.

These “rich’ people who create jobs are the ones Liberals want to make poorer.  Liberals say that the ‘rich’ do not need the money and that the higher taxes will reduce the deficit. The Federal deficit has gone from $161 billion, the last GOP budget, to $1.4 trillion under the Democrats. Facts are sticky things.

Liberals and their media pals ignore the overwhelming historical evidence that raising taxes reduces total tax revenues because more people have to be laid off to pay the higher taxes. The result is that less people are paying taxes.

Further, money is taken from the most productive people that improve the quality of our lives and given to the less productive or unproductive.  For example, welfare and unemployment benefits are paid for by the people who have innovative ideas to produce higher quality lower costing products or services –and need their profits to purchase materials and hire people to do it.

Instead our government takes away the entrepreneur’s ability to hire and gives the money to those who are not producing anything. So everyone has to pay more for less, including those getting the unemployment checks. They would be much better off if the entrepreneur was allowed to keep his money and hire the unemployed to produce something of value.

We already have a redistribute the wealth “progressive tax” system.  Nearly half of all income earners in the USA pay no Federal income tax. The top 10% of income earners pay over 70% of taxes and produce the majority of jobs.

We just need a few elected officials who understand and can explain the basics of how free markets (the VOLUNTARY exchange of goods and services) do a better job of improving the quality of the lives of virtually everyone who wishes to work and even those who cannot or will not work.

James F. Davis  12-16-10