Obama Should Cut the Corporate Tax Rate

“Britain to Obama: More Proof that Taxing the Rich Is a Fool’s Errand”

February 22, 2012

“President Obama is insistent that taxes must go up to close the deficit. He says it’s just common sense that taxes must go up, because the math says so. But if he gets his way, the numbers won’t add up the way he says they will."

“President Obama wants to raise taxes on “the rich.” But the Treasury will never collect the revenue he says will come from such hikes, because the rich will change their behavior to escape the punitive levies”

“Case in point from Britain, where Parliament recently implemented a 50 percent tax rate on the rich:"

“The Treasury received £10.35 billion in income tax payments from those paying by self-assessment last month, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period. Senior sources said that the first official figures indicated that there had been “manoeuvring” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad.”

“...Liberals understand this phenomenon when they raise taxes on cigarettes to discourage smoking, but they never seem to apply the same principle to income. If you tax income more heavily, you’ll end up with less income to tax, just like if you raise taxes on cigarettes, smokers purchase fewer packs.”

http://blog.heritage.org/2012/02/22/britain-to-obama-more-proof-that-taxing-the-rich-is-a-fools-errand/

Bill Hedges of MO 1:35PM May 16, 2012