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  • Sec. Clinton: Our Taxes Aren’t High Enough

    With the Korean Peninsula on the brink of war, a major U.S. Military surge in Afghanistan, and a nuclear treaty that undermines the United States’ ability to defend itself, Secretary of State Hillary Clinton is concerning herself with… America’s taxes?

    That’s right. Diplomat-in-Chief Clinton yesterday said that the U.S. tax rate isn’t high enough and that we should strive to become more like Brazil:

    The rich are not paying their fair share in any nation that is facing the kind of employment issues (the United States is), whether it’s individual, corporate, whatever the taxation forms are.”

    Brazil has the highest tax-to-GDP rate in the Western Hemisphere and guess what — it’s growing like crazy. And the rich are getting richer, but they’re pulling people out of poverty … There is a certain formula there that used to work for us until we abandoned it, to our regret in my opinion.”

    Yes, Brazil. According to Heritage’s Index of Economic Freedom, Brazil’s economy is ranked 113th in the world, among “mostly unfree” nations. It charts below regional and world averages, and its GDP is one-tenth the size of the United States.’  Despite its otherwise poor record, Brazil is experiencing a nice spurt of economic growth, thanks mostly to monetary stimulus injected during the recent financial crisis, and its future prospects look good, as well, thanks to expectations of rapid increases in offshore oil production. Is Secretary Clinton implying we should be doing more offshore oil exploration and development at this point?

    As a practical matter, the Brazilian ratio Sec. Clinton wants to shoot for is impossible for the United States to attain with its current tax system, unless Sec. Clinton would like to shrink the U.S. economy. As Heritage’s Curtis Dubay writes, throughout history, total income tax revenue raised in the United States as a share of the economy varies modestly, and never rises much above 20 percent, no matter the tax rate:

    The income tax is the predominant revenue raiser for the federal government, and fluctuations in the revenue it collects have the biggest effect on the total change in tax collections year-to-year. Over the course of its history the top rate has been as high as 91 percent and as low as 28 percent. Even with such large variations in top rates, the income tax has raised a remarkably consistent amount of revenue.”

    Because the revenue raised is effectively capped, the ratio of taxes to GDP can’t rise much  unless the GDP itself begins to contract  – or government generates revenue through new sources, such as the value added tax.   Is Secretary Clinton finally pushing the Administration out of the closet on levying a massive new VAT tax?

    It’s not the first time a member of the Obama Administration has weighed in on taxes. In April, Vice President Joe Biden said the U.S. tax system is unfair because, in his view, the wealthy don’t pay enough, despite the fact that the top one percent of income earners pay more than 40 percent of all income taxes.

    However, for Secretary Clinton, whose job description revolves around foreign affairs, tax policy is something of a departure. Heritage’s Senior Fellow for Public Diplomacy Helle C. Dale writes:

    As Secretary Clinton remarked Thursday, we are living in an increasingly complicated world, which makes the job of diplomacy — as she sees it — harder than ever. Maybe this is a good reason for her to stick to her day job, America’s diplomat in chief. Furthermore, wasn’t it Hillary Clinton’s husband who once as president admitted to a group of business executives that he had raised their tax rates too much? Higher taxes kill the economy. It is the last thing the United States need right now.”

    Posted in Ongoing Priorities [slideshow_deploy]

    18 Responses to Sec. Clinton: Our Taxes Aren’t High Enough

    1. EmmaJames says:

      Secretary Clinton is correct, except she forgot to mention she was talking about Rangel, Dodd, Daschle, Geithner, Rangel and the Clinton Foundation.

    2. Pingback: Sec. Clinton: Our Taxes Aren’t High Enough « Faulk For Congress

    3. Karen Georgia Ruther says:

      We have already been taxed to death, and Hillary wants us to be taxed more. Oue economy is in big trouble, the government is broke, people can't afford to feed their families. They are unemployed and can;t find a job, and are losing their homes. Some have nowhere to go, but the streets. This has never happened to

      America before. Hillary please have some compassion and empathy for america. Please help America.

    4. Vicky Jackson Dayton says:

      And she wanted to be our President! What real harm she could have done there!

    5. Vicky Jackson Dayton says:

      And she wanted to be our President — what real harm she could have done there!

    6. Suezenne Fordham says:

      I do not envy the Rich…. In most cases they have sacrificed and worked very hard to achieve their success, PLUS they have corporations that hire many many people and provide benefits1 I think that Corporations that remain in the US should be treated fairly and have incentives to remain here, the others that bail out in favor of higher profits by moving their businesses elsewhere, the sky's the limit! Raise ther taxes anyway you can… Keep the jobs IN the US! And bring the manufacture of pharmaceuticals back to the US where standards are high INSTEAD of farming out their production to china[small "c"]If they put melamine in their baby food killing babies, AND poisons in dogfood imported to the US, then what are they putting in our Meds, now manufactured there? Think about it and demand they make these Meds here, giving workers their jobs back! Once a company has been successful here then dont make it so easy to leave WO huge penalties!

    7. Neal Palmquist - Ohi says:

      Let's see….

      We get taxed when we earn money. We get taxed when we spend money. We get taxed when we save money. We get taxed when we die with money. We get passed a burden of generational national debt before we are even born.

      You can't make some people happy.

    8. Alex Simic, Windsor says:

      If you do a google search for favelas in rio de janeiro brazil you will see what she has planned for all of us.

      I am going to try a new slogan. Let's see if this flies.

      "Poverty Is Not The Answer!"

    9. rod56 says:

      this pig biotch should pay alot of taxes,,she dosen't or his loser husband..aways a tax happy when no one has a job or any money…

    10. Sheila G, Houston says:

      I wish all these democrats who want to raise our taxes would just pull out their checkbooks and write a check to the IRS to help the poor and shut up about the rest of our tax rate! I am charitable, and think that is a great way to address the assisting other groups, not letting the government decide who gets my money.

    11. ENW, Port Orchard, W says:

      She and Bill STILL have their fingers in the "pie!" Sestak and Taxes; heaven knows what else!

    12. kw says:

      LOL.. Well I will gladly let Hillary Clinton Pay more Taxes if that is her opinion..Just quit trying to take more money from the working class. With the new Democratic Congress we are being forced into mandatory medical Coverage and Possible Cap and Trade and revisions to immigration policy. All will cost money. Where is going to come from..The American public thats where..The debt crisis is going to hit the United States sooner or later..

    13. Glenn Richardson, No says:

      Perhaps those democrats that believe our tax rates should be increased should set an example by putting their money where their mouths are by DISCONTINUING THE PRACTICE OF TAKING ADVANTAGE OF THE DEDUCTIONS ALLOWED IN THE TAX CODE AND JUST PAY THEIR TAXES BASED ON THE RATE APPLICABLE TO THEIR INCOME LEVEL ON THE SHORT FORM WITH NO DEDUCTIONS..

    14. SB Owner Springfield says:

      The Clintons are pikers compared to today's modern left, and Obama! My question is what's in it for the Clintons?

    15. Greg (30 yr Veteran) says:

      I hope the people will remember all these progressive socialists in November. In fact, the next few election year Novembers.

      I am not rich, nor am I poor. Define the American that is truly poor, perhaps that person would be homeless. Otherwise, our poor all have cars, color TV's, cable, Internet, cell phones, and eat pretty good too.

      I want a tax system that is equal across the board. Fair tax or flat tax, either one.

      Hillary Clinton and her ilk need to go away.

    16. Paul Budnik Napervil says:

      It seems that the only rich that aren't paying their taxes are the democratic politicians. It seems that the main planks of the democratic party are lying, hypocrisy, & covetousness.

    17. Billie says:

      Hillary must be way too high?
      The government should be encouraging less and less of itself and exemplifying the rich as inspiration to those with little will to do for themselves but with the same freedom to gain the same riches, not punish prosperity. This is a country of, or was a country of opportunity, where you really could dream about being your own person and taking on, with hard work and endurance, anything you found interest in. You take your lumps and walk tall again. You do what it takes to make your life your own…not government's. More government is less freedom and we're sick of giving up what little we have left! We want it all back! Especially to know the opportunity is out there amongst the freedom of the people, not the dictate of government.

    18. Billie says:

      correction second line: the same freedom to gain their own riches…

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