President Obama has all but admitted that raising the tax margin on the top 2%/”millionaires and billionaires”/the wealthy might, just might, affect the economy negatively. Anticipating increased economic decline when he pushes up the rate from 35% to 39.6%, Obama has proposed another successful round of stimulus.
What might this new stimulus look like?
Extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits.
And the cost to taxpayers?
An estimated $255 billion total — which the GOP would surely need to demand that it be matched dollar-for-dollar in extra spending cuts.
So, let’s recount the logic of the Left:
Raise taxes –> Economy falters due to less consumption spending —> Need to spend $255 billion in government money to prop up the economy.
How about some other logic?
Keep tax rates the same as they’ve been for 10 years —> Economy gets a chance to recover without government interference and economic uncertainty —> No need to spend another $255 billion of taxpayer money
Some have suggested these are merely bargaining chips for the budget discussions. However, if Obama was so sure about his economic policies, and if these policies were really so good, he wouldn’t need to “spend” more or bargain any.