Tuesday, April 22, 2014
Matt Yglesias' Brilliant New Idea - Punish 'The Rich' With Confiscatory Taxes!
Matt Yglesias, Soros galley slave and former WAPO columnist has a great new idea.Let's make taxes really, really high on the 'Evil Rich' to punish them and redistribute their wealth for Big Government's social engineering purposes!
The Laffer Curve - the idea that tax cuts can sometimes increase tax revenue - is one of the most influential and widely debated ideas in the past two generations of American politics. Beloved by the right and despised by the left, one thing that both sides have tended to agree on is that knowing what side of the curve we're on should be a key driver of tax policy.
But in an era of surging inequality, it's time to revisit that assumption. Maybe at least some taxes should be really high. Maybe even really really high. So high as to be useless for revenue-raising purposes - but powerful for achieving other ends.
He actually equates seizing the money people earn with 'sin taxes' like the ones on cigarettes. I just couldn't resist shooting him an e-mail:
I always knew you were a totalitarian commie at heart, and I congratulate you on finally coming clean about it.
As someone familiar with several places where this kind of thing has been tried, here's what happens when your charming 'eat the rich' scenario is implemented.
First of all, yes, business talent and business capital flee like potential customers from a hooker with a herpes sore. R&D, patents and innovation disappear. And job killing? Think of it as your boyfriend President Obama's efforts on steroids.We can't all work for the government or live off welfare and food stamps, especially once President Obama implements amnesty. Just look at what's going on in France with a mere 75% taxation rate on 'the rich'.
Here's something else that happens. Contrary to what you might believe, the majority of the rich, even those small business owners grossing over $250K President Obama likes to demonize as 'rich' mostly aren't stupid. So if they don't flee to more inviting climes for their money and talent, guess what? A black market develops, with goods and services being sold under the table for cash.
And all these things kill economic activity and make those tax receipts dear to your Marxist heart plummet alarmingly.
You can play with your cute charts all you want. It doesn't change anything.
You see, Matt, this kind of theft only starts with 'the rich'. Eventually it trickles down to where everyone gets screwed, just like Obama Care where working people will be paying a 40% tax on healthcare in a couple of years.Even you, Matt. After all, why should you get more than one piece of pizza (if that) while others have none? Rising inequality, no?
Imagine, equating punitive tax rates with 'sin taxes' on cigarettes! I can't stop laughing at that one. The kulaks must pay, eh?
Rob Miller @ Joshuapundit