Theory and practice.

'In theory there is no difference between theory and practice. In practice, there is.' This quote is attributed to to (who else?) Yogi Berra.

This is to introduce the "Laffer Curve" that plots the relationship between tax rate and  the money brought in at a specified rate. The LC predicts a maximum revenue at some tax rate and an actual decrease if the tax rate is raised.

Leftists do not believe in the Laffer Curve and believe that there is a linear relationship between tax rate and what revenue the tax rate brings in. They refer to the Laffer Curve and revenue as "voodoo economics." Actually, the Laffer Curve works.

The Socialist-led govt of the State of Maryland changed taxes from 4.75% to 6.25% for people earning over $1M/yr. Revenue in this category fell $1.7B/y. The British govt of Socialist Brown changed tax rates from 40% to 50% for people earning over a million pounds/yr (2010). Not surprisingly to us, the number of people who fell into this category went from 16,000 to 6,000. Now that the Brits have changed income tax rates back to 45%, the number of people reporting more than 1M lb/yr income has gone back up to 10,000.

Barak Hussein Obama and his fellow Democrats want to "resolve" the financial cliff by increasing the TAX RATE on the top 2% of earners in this country. The lame-brain leadership of the GOP wants to resist that but provide other "revenue enhancements.' It is a teachable moment. Boehner and co could point out that raising the tax rates reduces revenue. He could point to the examples where figures actually show it is as we say. But the Republican establishment is quiet and leaves the field to the demagoguery of the Socialists (called Democrats). And Barak Hussein wants the highest earners punished for their success, consequences be damned.