Why Hillary’s And Bernie’s Tax Hikes On The Rich Are Doomed To Fail

Investors Business Daily ^ | 5/02/2016 | TERRY JONES

[expat_panama]

Democratic presidential candidates Bernie Sanders and Hillary Clinton often assert that the only way to correct wealth inequality in America is to tax the rich at even higher rates. A new study suggests this is false.

As part of what she called the “growth and fairness economy,” Hillary Clinton has proposed surtaxes on the wealthy and higher taxes on all capital gains to “shuffle the deck,” as she put it.

In the past, she has hammered the rich for being, well, rich. “Economists have documented how the share of income and wealth...

...both Clinton and Sanders would raise rates on the wealthy...

...even if they succeed, the primary stated goal of taxing the rich — closing the inequality gap — wouldn’t be achieved...

...higher taxes would mean the rich would save less. But they would still own their wealth...

...want to have the rich save less, when those savings are the engine of future investment, jobs and growth in the economy?...

...more of our smartest, most talented, most entrepreneurial people leaving our country to preserve their hard-won wealth from the prying hands of Big Government?...

...top 1% in incomes earned 19% of all U.S. income, but paid 38% of all income taxes. So Sanders and Clinton are right when they say the tax code is unfair — it’s unfair to those at higher incomes.

The only reason for imposing higher taxes on the wealthy, who already pay more than their fair share, is class warfare, spite and envy — the worst things on Earth on which to base economic policy. If Clinton and Sanders were truly serious about closing the inequality gap, they would be pushing for lower taxes, fewer regulations, school choice, more incentives to save and other things that would boost economic growth — not class warfare.

[expat_panama]

Related news

From Townhall:

Trump: You Bet I Support Raising Taxes on the Rich

GUTHRIE: Do you believe in raising taxes on the wealthy?

TRUMP: I do. I do – including myself. I do.

From www.donaldjtrump.com

tax cuts are fully paid for by:

1. Reducing or eliminating most deductions and loopholes available to the very rich.
2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad.
3. Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.

[Mr. K]

Let’s say you invent something and you make $1million dollars on it.

You would think you are set for life- you’ve won the lottery.

But, for THAT YEAR your income is $1 million so you pay a majority of that money in taxes- and then you go back to working for a living for the rest of your life

How if the hell is that ‘fair’??

[SunkenCiv]

The reason is, Bernie's proposal comes from Bernie, and Hitlery's proposal comes from Hitlery. Thanks expat_panama.

[pepsionice]

Perhaps the better and more historic question to ask....after the new President gets Senator Snuffy and Representative Freddy to pass some new great tax on the rich....what typically happens?

Snuffy and Freddy come back to the table an hour later....and craft ten tax credits, which work in other ways unrelated to the taxes created at the beginning of the day.

So when IRS does all the tax revenue collection....it’s an odd thing. Out of the 100 new tax dollars for revenue collection that was talked about...just five dollars make it through the system....mostly related to non rich-people and the middle-class who didn’t get some nifty new credit.

It takes about four years for anyone to realize that the credits cancelled out the taxes, and all that talk was for nothing.

This is the script used by Presidents and politics for the past hundred years...why should I expect anything to change?

[Fai Mao]

You need to read the Trump plan and listen to what he actually said rather than the Townhall hit piece

The taxes on the rich that Trump wants to raise are in areas that are currently untaxed - primarily profits from hedge funds and day trader types, who evidently can find ways to not call income - income.

Trump also supports a ONE TIME tax on the super rich to raise money that is specifically for reducing the national debt.

Read his tax plan. Look what he actually says, not what the GrOP-E shill want you to see.

[DoodleDawg]

tax cuts are fully paid for by:

A lot of people disagree with that: Link

[PGalt]

Fail? It’ll take a long time for socialists to run out of other people’s money. Fail?

https://www.youtube.com/watch?v=__VQX2Xn7tI

R.I.P., Karen

[exDemMom]

A new study suggests this is false.

Which is exactly what every other study has shown. Amazing!

Mrs. Clinton, instead of standing up there and blaming the rich with your pandering class envy tactics, why don't you take the lead and use your own money for the poor? I understand that you have a family "foundation" which has been fed with donations that you never earned. Instead of living like an emperor, why don't you use your foundation to, I dunno, start attacking the root causes of poverty, beginning with the poverty culture that inhibits people from even wanting to better their lives?

[expat_panama]

Happy Tuesday morning all!  Major stock indexes popped up almost a % in mixed volume but futures traders this AM see that short lived w/ mixed/down trending today. 

More profit taking w/ metals too, trading is down a tad and futures atm see another -0.36%.

Yesterday's ISM Index edged down (again) and is now at 50.8 while construciton spending yesterday came out (unexpectedly) at just 0.3 --although last month's drop was upgraded to a plus 1.0% (also unexpectedly).  This afternoon we get Auto Sales & Truck Sales.

--and:

• The U.S. Economy Will Rebound from This False Dusk
• The Rising Longevity Gap Between Rich and Poor
• Hillary's Truly a Fiscal Conservative
• Stock Market Will Be Big Problem for Next President

[Sir Napsalot]

Philly's new mayor campaigned on he's going to tax the rich and sugary beverages, i.e. soda tax, to fund the Philly school ‘for a change’ (as if all his predecessors never ever fund schools). As every year the school district always runs out of money into huge debt, no matter how big the budget is.

Now his 3 cents per oz proposal for any beverage contains sugar is hitting those dummies who fell for the scheme, these guys/gals just don't realize ‘the rich’ meant themselves.

[expat_panama]

...tax cuts are fully paid for...

Whenever I hear a politician saying we need to pay for a tax cut with some other tax hike, I start to wonder how they want me to pay for my keeping anything else I own that they haven't confiscated yet.

[pieceofthepuzzle]

“But, for THAT YEAR your income is $1 million so you pay a majority of that money in taxes- and then you go back to working for a living for the rest of your life
How if the hell is that ‘fair’??”

It's not. There used to be an ‘income averaging’ tax provision for exactly this purpose - allowing you to pay taxes on average income over a specific period (I think it was 5 years). That's gone now, except for farmers and fisherman.

To me, the same concept applies to people who made nothing, or very little for many years while training for a specific professional degree. When they finally start making decent money, they are taxed as though they're wealthy, but they are in reality playing catch up for all the years they didn't make anything, or very little. For some professions this can be a decade or more. Then add in the percentage of income that has to go to paying student loans.

On the other hand, for many of the uber rich, there's no such thing as a W-2 for your weekly or monthly paycheck. You may not even show an employment income, and can shelter your investment income in specific ways if you have good accountants and tax lawyers.

And then you have the 45.3% who pay no federal income taxes at all.

The system is broken and needs simplification and fairness.

[silverleaf]

When trump takes office the national debt that no one is tracking openly or talking about will be over $ 20 trillion and climbing

It increased by 1 TRILLION just in the past 6 months

And he will have 60 days before the current blank check plan that Ryan gave to obama- ends p

Not much time to jump start the economy

[nuconvert]

The “wealthy”, meaning people who make more than the Clintons. She doesn’t consider herself “truly rich or “ truly wealthy”.

[Mr. Jeeves]

It wasn’t fair for you to invent something at the expense of others who didn’t invent it. Society has determined, heretic, that you need to be taken down a peg. :)

[expat_panama]

You need to read the Trump

My first impulse was to tell you that you were way out of line, but after thinking a bit I begin to realize that maybe I'm the odd man out here.

It's that years ago the Freerepublic was for conservative thinkers that decided they needed to read things they couldn't get elsewhere but more and more these days we're going over to the big gov't types that decide for us what we need to read.

[Texas Eagle]

And the”poor” meaning the Clintons. Remember how they left the white house dead broke?

[DoodleDawg]

Whenever I hear a politician saying we need to pay for a tax cut with some other tax hike, I start to wonder how they want me to pay for my keeping anything else I own that they haven't confiscated yet.

If you and I cut our revenue then we also cut our spending. To do otherwise is foolish and will only cause even more problems in the long run. Trump doesn't do that. Even if his tax cuts defied every prediction and did wind up being revenue neutral we're still currently running a half-trillion dollar deficit and Trump has promised to increase spending on the military and infrastructure, while leaving Social Security, Medicaid, and Medicare alone, and imposing his replacement for Obamacare which will cost God knows how much. And he has proposed no spending cuts to offset them. He could easily run up another $10 trillion with his tax claims coming true.

[NonValueAdded]

Didja ever notice in the 10 Years After song that it is:

Tax the rich; feed the poor
'till there are no rich no more

Why isn't it "'till there are no poor no more?

I'll take shared prosperity over shared poverty any day of the week.

[sphinx]

Trump also supports a ONE TIME tax on the super rich to raise money that is specifically for reducing the national debt.

One time. Right. Strictly for debt reduction. Right. And I have a bridge to sell you.

You can't hide behind that FR handle any more, Charlie Brown.