Wednesday, April 25, 2012

Response to "High Tax Rates Won't Slow Growth" WSJ article by Diamond and Saez 4.23.2012

OMG! The author is a Nobel laureate! Just like Obama and Al Gore! That changes everything! Obviously MIT is not known for economics and these clowns live in the same Utopia as the first 7, now 8th Ivy League Professor, that Obama has recruited to run his economic team-and we all know how successful they’ve been. The blatant and profound lies printed in this article are so insulting; I'm shocked the WSJ published them.  “… There’s no evidence to support a case for lower growth from higher top tax rates."?  On the contrary- there is a ton of evidence, many studies and bona fide historic precedent proving that high taxes discourage growth, moreover, there is absolutely ZERO evidence proving otherwise.  Do these, double talking, Alphabet Soup, Nobel laureate Leftists truly believe we’re idiots?  Are they confusing their audience with a gathering of Obama worshipping academic ideologues?  Where are the studies to which they allude and precisely what are the parameters of these specious studies?  They brush off Arthur Laffer's fact based work, as if it proves their Utopian fantasy, when in fact it proves just the opposite.  There is no evidence? Please!  The tax policies implemented by Calvin Coolidge's during his term in office; Ronald Reagan's Tax Policies; JFK's Tax policies; the tax policy implemented during the George W Bush's Presidency, as well the deleterious tax policy changes put into law by his father, Herbert Bush;  the economic policies of post World War I Germany; Argentina in the 1970's;  Japan from 1970-2012 - all provide vivid examples, demonstrating exactly how high tax margins on what these Marxist clowns refer to as the 1%, decrease tax revenue receipts.  The scurrilous 'Sorosesque” authors of this Obama Policy promulgating, propaganda piece, incorporate some of the most common Leftist subterfuge techniques.  First, do they ever mention that 67 to 78% of their, so called, 1% are small business filing as S Corps? The same small business which create jobs, give pay increases to employees and always look to expand their businesses?  Of course these uses of revenue are trivial compared to the great things Government investments accomplish.    Next, they blather about the virtues of public investment and investing in education, as if we were asleep, the last three years, as Obama threw trillions of our tax dollars down this “Government knows best” black hole. Then they revert back to the Left’s standard specious delusion that “America did best when tax rates were 70%to 90%” after WWII.  The fact that we had a booming economy from World War II to the mid 1970’s was in spite of the fact that we had ridiculously high income tax rates which were retarding growth.  It was the fact that Japan was a cinder, Germany was ruble, England had gone bankrupt and all of Europe was lying on its back after the War.  We had zero competition for two and a half decades as a result of the Second World War.  We were the only major industrial nation, that wasn’t attacked during the Second World War and that’s why we had unprecedented economic expansion.  So it’s completely a red herring to talk about that period as the growth being the result of high taxes, it was in spite of the high taxes.  Furthermore, it was because of a historical anomaly which will never happen again.
Finally, it’s important to recognize that these Bozos, like most leftist con-men are mixing apples and oranges, they’re talking about income taxes, when the tax they’re actually talking about (IE) The Buffett Tax, is a disguised capital gains tax.  And history is clear -the reason, not just Ronald Reagan, but John Kennedy, asked for and got a reduction in the capital gains tax is that it spurs economic production and it increases the revenues received by treasury.