Conservative Wanderer

“A troubled and afflicted mankind looks to us, pleading for us to keep our rendezvous with destiny; that we will uphold the principles of self-reliance, self-discipline, morality, and, above all, responsible liberty for every individual that we will become that shining city on a hill.” — Ronald Wilson Reagan

And You Thought Democrats Only Wanted To Tax “The Rich”

Well, think again. Now that they’ve won their tax hike on people making $400,000 a year, they’re looking for even more tax hikes.

The Hill reports:

Democrats say they want to raise as much as $1 trillion in new revenues through tax reform later this year to balance Republican demands to slash mandatory spending.

Democratic leaders have had little time to craft a new position for their party since passing a tax deal Tuesday that will raise $620 billion in revenue over the next 10 years.

The emerging consensus, however, is that the next installment of deficit reduction should reach $2 trillion and about half of it should come from higher taxes.

Now, how are they going to raise that much in taxes from just “the rich”? Answer: they can’t. As John Stossel pointed out last year:

But it’s a fantasy to imagine that raising taxes on the rich will solve our deficit problem. If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion. That’s only a third of this year’s deficit. Our national debt would continue to explode.

$616 billion is a lot less than the $2 trillion they want… let me demonstrate by writing out the numbers:

  • 616,000,000,000
  • 2,000,000,000,000

And, there’s absolutely no way they’re going to tax everyone making over $1 million at one hundred percent… it would hit too many of the Congresscritters themselves.

So, how do they raise that $2 trillion? Raise tax rates or reduce tax deductions for the middle class… that is, you and me.

Remember this lesson every time the Democrats talk about “taxing the rich.” There’s not enough money in “the rich” to spend for their massive spending sprees. They have to tax everyone that still pays taxes in order to pay for their spending, and even then they probably don’t have enough.

Category: Taxation
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