Investor’s Business Daily says raising taxes on the top 2 percent figures to bring in annually about $34 billion. Others put the number at twice that. Either way, it is a tiny fraction of the $1.1 trillion annual deficit. And an Ernst & Young study says this would cost 700,000 jobs. So raising taxes on the rich a) brings in a small amount of money and b) reduces, not increases, economic activity.
Why increase taxes on the rich at all? Answer: It’s a matter of “fairness.”
Andy Stern, the former head of the Service Employees International Union, the fastest-growing American union, describes the economic philosophy of the left: If raising taxes on “the rich” hurts the economy, that is an acceptable price. “Western Europe,” says Stern, “as much as we used to make fun of it, has made different trade-offs which may have ended with a little more unemployment but a lot more equality.”
Larry Elder is a best-selling author and radio talk-show host. To find out more about Larry Elder, or become an “Elderado,” visit www.LarryElder.com. To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
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