Skip to comments.More Pain, Less Gain
Posted on 11/19/2012 5:27:45 PM PST by Kaslin
President Obama and the Democrats have made a cottage industry of peddling "tax hikes for the rich" as the way out of the fiscal crisis precipitated by ObamaCare and other profligate spending.
But with reports and polling showing that upper income spending has fallen since the beginning of September, the country may have a chance to see that "tax hikes for the rich" are not as costless as the administration and Democrats want Americans to believe.
The "rich" are pulling back in anticipation of tax increases coming down the pike in 2013. As a result, it looks like they will be spending less on holiday shopping. The idea that the "rich" are making do with less (relatively speaking) may bring joy to the class-warfare-addled hearts of Obama, Reid, Pelosi & Co. -- but in truth, "the rich" will be hurt less by this phenomenon than the small businesses owned by the "non-rich" who will not have the benefit of the higher spending (along, of course, with the lower earnings for the evil corporations whose stock is owned by millions or ordinary Americans whose 401(k)s or pensions are invested in mutual funds).
Someday, it will somehow sink in that -- however much President Obama and the Democrats want to redirect public disappointment with their performance into anger at "the rich" -- the truth is that we are all in this together. It is hard for any sector of the economy (besides Big Government) to flourish when job providers and big spenders are being punished.
One example I saw in an industrial magazine was a story about suppliers of equipment for luxury yachts.
They are being built at about 25% of the rate of 2007 before Baraq was “elected”.
Lets say a fat cat was going to buy a yacht for 100,000 but due to tax increases he decides not too. Ok now uncle Sam gets the 100,000. What does uncle do with it? He redistributes it , so now one yacht is converted into 30,000 bottles of Night Train. The stimulative effect of one yacht on the economy is lost in return for the stimulative effect of 30,000 puking winos.
I don’t think I get what you are saying. If the rich man decides not to buy the yacht how does the Uncle Sam get the $100,000?
How many jobs have you been offered by poor men?
...minus federal government departmental overhead; so it's likely more like 15k worth of Night Train.
Rich mans taxes go up $100,000 next year. No new yacht for him. Uncle Sam gets the $100,000 instead of Franks Custom Yachts.