Wednesday, September 08, 2010
opposition to extending the Bush-era tax cuts to the high end of the income spectrum...
Which do you think would lead consumers and business to be more optimistic about the future?
(1) That starting next year, high income taxpayers are going to cough up billions in additional taxes, thus taking that amount of spending and investment out of the economy? And which also indicates a continuation of the Obama Administration war on the successes of society?
(2) That taxes on high income taxpayers would stay the same, allowing them to continue to spend and invest at the same level they now are? And which would also indicate that Obama might have started to realize that waging war on those who hire doesn't produce a lot of hiring?
Now I don't have an advanced degree in economics, but I'd be willing to bet just about anything that most people would take more comfort in the latter.
Now... it may be possible that even though most people would prefer the latter, they'll still take some solace in knowing that not everybody is going to have their taxes go up... and it is possible that this might generate a spark of sorts from people who were afraid of the hit of even more money being sucked out of the economy.
But it won't generate as much of a boost as would leaving the rates in place.
Of course, Obama doesn't seem to really care about finding the best way to stimulate the economy, he is wedded to his approach and isn't going to change... no matter how much evidence there is that his plan - and spending - hasn't helped.