A lot is being said about raising tax rates on the wealthy. Many people cite Warren Buffet as saying that the tax rates on the wealthy should be raised. A man that I greatly admire, George Takei, wrote a blog post on how he should be taxed more.
Takei, and others, say that they should be taxed more to avoid the "Fiscal Cliff." Others, like the President, claim that the wealthy aren't paying their fair share. Still others say that they should pay more because they won't notice it.
The other side says that taxing those who make over $250 will hurt businesses. They say raising the tax rate on Capital Gains will discourage investment.
While history, and simple mathematics, side with the latter, I tend come at this from a very different angle.
With me, the freedom angle always comes first. For those of you wealthy wanting to pay more... Nothing is stopping you. You may donate as much money as you want to the Federal Government. They will take it. When you pass laws raising tax rates, however, you are removing the freedom of those who do not wish to donate their money to the Federal Government. You are putting a gun to their head and compelling them to remit their property. This is not freedom.
Next, is simple mathematics. If those making over $250K a year were taxed at %100 of their income, it wouldn't even solve the current budget deficit, let alone make a dent in to the federal debt. In other words, additional revenue will NOT solve the problem. The problem is a spending one. We spend too much money. Plain and simple. Cuts, real cuts, not just cuts in increases, need to be made across the board. Entitlements, Defense, Government Operations, you name it, it can be, and should be cut.
There is no Fiscal Cliff. If there was one, we have already jumped over it with Vietnam and LBJ's Great Society. We must come back to baseline. We must cut the government.
BUT... we won't. It will continue to grow. President Obama is not Bill Clinton. When Clinton lost the house and Senate back in 1996, he changed his way of governing to allow for changes and cuts to be made. The President is more of a hard core socialist liberal, and doesn't have such a need for everyone to like him. He is more of a narcissist who thinks everyone likes him just because he is who he is. The President will not give up the fight for higher tax rates. He doesn't need to. The Republicans, will cave in the end. They don't have the intestinal fortitude to continue the fight. There will be some who will continue the fight, but they will be labeled crazy, and on the fringe.
The math doesn't work. It doesn't pass the freedom smell test. Congress will do it anyway.