Saturday, July 11, 2009

Tax cuts for the rich.

Socialists in America (Democrats in general and Liberal Democrats in particular) use demagoguery when describing economic policies of their opponents. "Tax cuts for the rich" they scream, when the GOP wants to reduce tax rates to stimulate the economy. And before that there was the "trickle down" economics pejorative. It is surprising how inept Republicans are at hitting these hanging curves.

Let's take the "tax cuts for the rich" demagoguery. The dirty secret is that Liberals do not tax wealth, but income. So, letting high wage earners (or Investors) keep more of what they earn is not giving them money, just reducing what the government takes from them. If we want to stimulate the economy, the best way of doing that is by letting the people best at producing income keep more of it, so they can earn even more. They will do that by employing more people. And the voters have two choices: will they allow the high earners keep more of it and put people to work? or feel better by taking it from them and lose their jobs? Not so hard is it Senator McCain!

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