By Tom Quiner
Tax, tax, tax.
The president and his party insist that tax increases on America’s most productive workers (aka “the rich”) are the only way to right our self-inflicted debt mess.
Evidence suggests that is the worst thing we could do, according to Stephen Moore and Richard Vedder. Mr. Moore is the senior economics writer for the Wall Street Journal opinion page. Mr. Vedder is an economics professor at the Ohio University and an adjunct scholar at the American Enterprise Institute.
Writing in the Wall Street Journal, they explained:
“Using standard statistical analyses that introduce variables to control for business-cycle fluctuations, wars and inflation, we found that over the entire post World War II era through 2009 each dollar of new tax revenue was associated with $1.17 of new spending. Politicians spend the money as fast as it comes in—and a little bit more.”
In other words, if you give politicians more money, they will spend it, and then some. They can’t be trusted with our money, as they have proven time and time again.
We dare not let them raise tax rates on anyone when we clearly have a spending problem, not a tax problem.
This is but one of seven reasons not to increase taxes, according to the Center for Freedom and Prosperity. Here is their complete list:
1.Tax increases are not needed.
2. Tax increases encourage more spending, as I commented on above.
3. Tax increases harm economic performance.
4. Tax increases foment social discord.
5. Tax increases almost never raise as much money as projected.
6. Tax increases encourage more loopholes.
7. Tax increases undermine competitiveness.
Watch the Economics 101 video above for a concise, intelligent case against the need for tax increases.