A July, 2012 report prepared by Ernst and Young and submitted to the U.S. House Ways and Means Committee suggests that if Democrats get their tax hikes from above average income earners, the Leftist party might end up going over a political cliff.
Democrats at present are throwing another tantrum over enabling tax hikes on upper income earners—according to President Barack Obama, individuals making $200k a year or more. If you think $200k is rich, you’ve never been around real wealth.
Republicans are rightfully balking at any tax increase. The GOP should not yield to extreme Leftists led by senators looters like Sen. Patty Murray (D-Wash.) because Republicans regained the House in 2010 for a reason.
The 24 page report was commissioned by a number of groups like the National Federation of Independent Business.
The report shows why anyone advocating a tax hike at present should lose their office in November. Among the revelations:
─ This report finds that these higher marginal tax rates result in a smaller economy, fewer jobs, less investment, and lower wages. Specifically, this report finds that the higher tax rates will have significant adverse economic effects in the long-run: lowering output, employment, investment, the capital stock, and real after-tax wages when the resulting revenue is used to finance additional government spending.
─ These results suggest real long-run economic consequences for allowing the top two ordinary tax rates and dividend and capital gains tax rates to rise in 2013. This policy path can be expected to reduce long-run output, investment and net worth. If the revenue is used to finance higher spending – a policy consistent with financing the growth in entitlement programs – employment and livings standards would also be adversely affected.
Obama obtained 20 taxes in his ObamaCare monstrosity, a bill made legal only because the U.S. Supreme Court changed the Obama administration’s argument from the Commerce Clause, which we all knew did not support the mandate, to Congress’ taxation powers. SCOTUS enabled an illegal bill by making Democrats’ argument for them. That is the best reason states should simply nullify ObamaCare.
Obama got 20 new taxes and that isn’t enough? The GOP gave Dems another tax too—in the transportation bill where they allowed taxes on roll-your-own Mom and Pop cigarette shops.
Democrats want to spend more—that’s’ one way they obtain votes. They buy them with taxpayer funded entitlements. These Dems don’t care about the civil unrest that will follow when money runs out. As an example look at the racial divisions Democrats sow in our country right now, purely for political gain. Alternatively, look at strongholds of Democrat rule like Chicago, where children as young as 6 routinely die in the streets.
Thing is, if Democrats get their way, the whole country suffers, their own supporters included.
Therefore, if party flacks like Murray want to send the country “over the cliff,” they may feel good about it short term, but in the end, Democrats may find their own party plummeting off that cliff as well.
(Commentary by Kay B. Day/July 17, 2012)
Related at The US Report