A Question For Democrats
From Greg Mankiw:
Okay, you want to raise taxes on the rich. I get that. But what do you want to do with the money?
At different times, it seems, you want to
1. Fund universal health care.
2. Give a tax cut to the middle class.
3. Reduce the long-term fiscal gap.Which is it?
He goes on to point out that each percentage point increase in tax rates on America’s two highest tax brackets will only result in about $6 billion/year in additional income. And even that is questionable given that, when higher taxes are levied, people tend to take action (both legal and illegal) to avoid them.
Democrats may want us to believe that they’d be able to fund their agenda (and I’d point out that universal health care isn’t the only massive spending initiative they’ve got in the works) by only taxing the rich, but the reality is that we’d all bear the burden of their overzealous spending. Either that or we’d run up the national debt even more quickly than now.
