Crush Liberalism

Obamanomics already working to destroy American economy

Don’t blame me: I didn’t vote for Comrade Omarxist.

Ace’s post is entitled “Prophet of Doom: Social Security is Hemorrhaging Red, T-Bills Won’t Sell, America’s Bond Rating May Be Cut”.  That says it all.

Martin Feldstein, Harvard economics professor and WSJ contributor, has an outstanding column on how Oprompter’s tax increases are going to kill any recovery we hope to have.  Increasing capital gains taxes, implementing a “cap-and-trade” taxe that will hit everyone, hiking income taxes on small businesses and people making over $(fill in whatever number Joe Biden pulls out of his keister this week right here), and raising corporate taxes on foreign-source income will result in higher priced goods and in less tax revenue than the Economic Illiterate-in-Chief expects.  As Ed notes:

This is a recurring theme with Obama and tax policy.  He and his advisors use static analysis to predict results from tax increase, ignoring the effect that tax changes have on revenue.  He assumes that a 7% increase in the capital-gains tax, to use one example, will result in a 7% increase in revenue from the previous year, but that’s simply not the case.  The tax hike will cause people to change behaviors to avoid paying higher taxes, either by cashing out this year (resulting in a loss of capital to the marketplace) or not selling off stakes in companies and investing the profit elsewhere.  The effect of the change will itself limit revenues, probably more than the increased percentage will capture, making the policy a net loss to the government.

Then again, Uhhh-bama has said that he knows tax increases are harmful but he’ll eventually do it anyway.

Elections have consequences.  Unfortunately, the consequences affect even those of us who were smart enough not to vote for a socialist.

Exit question: How will the American Idol…er, President…spin his tax increases as something he inherited from Bush?

May 14, 2009 - Posted by crushliberalism | economic ignorance, Obama, socialism, taxes