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As Jrushing points out in Post 20 higher income tax rates do not result in the government collecting a larger share of the GDP. Therefore the damage that higher tax rates do is not necessarily that they take more money out of the economy it is that higher tax rates distort the economy.

The wealthy have the advantage over the less affluent in that they can manage their income to avoid taxes.

The income tax is a tax waged on income as defined by law. The wealthy will manage their income to circumvent the highest rates of taxation.

Recently so of the highest earners (corporate officers) have used stock options to do this; diverting their compensation in to the form of stock options to take advantage of the lower tax rates on capital gains (profits from the sale of stock, real estate and other physical assets as defined by law).

The point being that people can be resourceful in tax avoidance and in avoiding taxes they change their behavior. These changes in behavior will cause the financial markets and the economy in general to move in directions that are not necessarily beneficial to the country or the world.

I personally am changing my behavior this year to try to avoid taxes. I am the owner of a rental property. If Obama is successful in allowing the Bush tax cuts to expire the capital gains tax rate will increase from 15 to 20 percent January 1. Also in the Obama Care bill was a new tax on rental income. So I have been pushed by taxes in to trying to sell my rental property by the end of the year.

Changes in taxes change the behavior of people in the real world. The Left has a bad habit of not taking this in to consideration when they contemplate their tax and spend schemes.

Secondly, you didn’t have the size of government that you have today...no war on poverty, no Department of Education, no Department of Housing and Urban devlopment, no depertment of health and human services, no department of veterns...etc...no Clean water act,

Also in the Obama Care bill was a new tax on rental income.

Is this true??? One more reason why I despise Hussain!!!. I just purchased a property back in 2007 with the intent of moving into it. As we all know housing and the economy tanked shortly after so I was out of work. Since I couldn't sell w/o a major loss and I was lucky enough to be able to rent it out, I've been able to hold onto it. Now you tell me that Hussain has screwed that idea!?! I tell you, I can't wait to see the kenyan wearing an orange jump suit and ankle bracelet picking up trash by the side of the road.