Let's not kid ourselves. President Obama's new plan to soak the rich is not about producing jobs. It's not even about "raising revenues." It really is about redistributing wealth while at the same time feeding the jealousy of the non-rich. Here’s why.
Think about it. What does taxing millionaires yet even more actually accomplish? Making them pay their "fair share?" Since when is 1% of Americans paying 38% of federal taxes not a "fair share?"
Will it produce more revenue? In short, no. History has shown that when you let the rich keep more of their money, government revenues increase, not decrease.
As the Cato Institute reported on Sept. 13, 2011: "In 1977 when the capital gains tax was 39.9%, realized gains amounted to 1.57% of GDP. From 1987 to 1996, when the capital gains tax was at a lower 28%, realized gains went up to 2.3% of GDP." This produced a higher level of actual revenue for the government.
Then, from 2004 to 2007 when the capital gains tax was even lower at 15%, realized gains shot up to 5.2% of GDP, which produced even higher revenues than before. You see, 15% of 5.2 is a higher dollar amount (more revenue) than 28% of 2.3.
That's right. Let those "evil" millionaires pay less in taxes (which is still more than the rest of us) and the government sees "increased revenues." I thought that's what Obama said he wanted.
So what, then, will soaking the rich even more accomplish? Well, I suppose it keeps that rich fat cat from buying another yacht.
But, why would we want that?
The last time I checked, that yacht purchase produces a lot of jobs in various manufacturing plants that make hulls, anchors, windows, fabric and upholstery, engines, rudders, nuts, bolts and electronic components, not to mention sales and servicing of the yachts, marina workers. And, the list goes on.
The fact is, taking even more money from millionaires makes many people feel a sense of power, justice and accomplishment – but, it doesn't increase revenues or produce jobs.
All millionaires have something in common. They are nearly all employers. Does any one actually believe his own personal employment situation would be improved if his employer had less money?
So, no. This is not Obama's way to produce jobs. It's his way to redistribute wealth in this country and buy some votes from jealous voters who get a high from seeing those with more have less.