The Case for Raising Income Taxes: A Libertarian Sees the Light
When it comes to income taxes, President Obama was right; it indeed is “just math.” Today, the federal government is running up an annual deficit of over $1 trillion and politicians in Washington are totally unwilling to remove the wasteful Bush tax cuts for wealthy Americans.
But this whole debate really has nothing to do with class warfare or income equality. It has to do without how this country can cut the annual deficit in a balanced manner. Anyone who understands basic economics knows that when wealthy people make money, they don’t just start injecting it into the economy to create jobs. They save it and use it to enhance their assets so that their net worth increases over time. This basic economic principle completely debunks the Reaganite theories of trickle down that hold no validity.
So instead of keeping wasteful policies, the politicians in Washington should let the Bush tax cuts for wealth Americans expire. They create no jobs and their addition to the deficit has helped spur on a perpetual inflationary cycle that ultimately dilutes all monetary benefits wealthy Americans receive from these tax cuts.