Originally Published: December 14, 2010 9:55 p.m.
There are no "tax cuts," as the liberal media and congressional Democrats propose. It is a choice of maintaining the present "Bush tax rates," or increasing tax rates for some or all tax levels. There is a cry from the Democrats as "tax cuts for the rich." This is a lie. A tax increase for the rich is nothing more than wealth redistribution, which President Obama favors.
It is the people with incomes of $250K or more who have the small businesses that fuel the economy and create jobs. Just the threat of increasing taxes on the wealthy will reduce hiring and therefore business revenue. This was best demonstrated from 1980 to 1988. The highest tax rate in 1980 was 70 percent, and by 1988 the highest tax rate was reduced to 28 percent. All tax rates were reduced.
During this period the tax revenues increased by 75 percent and the stock trading went from 30 million shares a day to 600 million shares a day. Obviously, a major portion of the increased revenue came from tax cuts that fueled the stock market, thus creating jobs and personal income.
This is contrary to what Sen. H. Reid said: people in the higher income brackets do invest, as demonstrated by the market performance.
With the threat of higher tax rates for the "rich," higher capital gains tax rates and higher corporation tax rates - all proposed by the democrats - it is no wonder that the rich and corporations are holding on to their capital, with little investing and hiring.
Senator D. Durbin said the rich are getting a tax cut and the unemployed are going to lose their welfare benefits if the jobless benefits are not extended - both lies. Doesn't the senator remember the welfare reform bill that President Clinton passed, after three vetoes? This bill put a limit on the total welfare years (five) with only two consecutive years at a time.
Anyone that reached either limit, and with no job, could collect a welfare check by going to work for the welfare department. Thus, no one would be without a check. This welfare reform act put about 4.5 million people back to work.
Curious, Durbin does not remember the welfare reform bill.
Another wild distortion is that President Obama claims jobless benefits will increase spending and help the economy. These jobless benefits come from tax revenues, which will increase debt and will not help our economy. Obviously, President Obama does not recall the welfare bill.
With all the distortions and lies the congressional Democrats and liberal media are stating, it is difficult to understand how the Republicans can work with them. That is like having a dishonest business partner. There must be intellectual honesty for positive production.