Barack Obama has pledged to raise taxes across the board on higher-income Americans. When interviewed on CNBC by Maria Bartiromo, he said that he would raise taxes on capital gains, dividends, and income over $250,000. Then Bartiromo pointed out that lower tax rates had resulted in higher tax revenue being collected. Obama responded that it was an issue of “fairness.” He went on to say that a secretary should not pay higher tax rates than her boss.

Of course what is fair depends on one’s point of view. Most people who are making more than $250,000 per year are small business owners. They would tell you that after working most of their life for little money and skipping pay checks so that they could pay their employees it is not “fair” that they should have to pay more than half their income in taxes.
More importantly, raising taxes on these people will make them less able and less likely to invest in growing their businesses. This will result in slower economic growth and lower tax revenues. The best tax policy is the one that generates the most tax revenue.

One thing is clear — raising taxes especially in an economic downturn will have a dire effect on our economy and tax collections. Sen. Obama by his own statements is more interested in making things “fair” than pursuing the best tax policy. This is income redistribution pure and simple. So let’s call this what it is: socialism.

 

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