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  • Chart of the Week: Taxing the Wealthy to Cover Future Deficits Won't Work

    Democrats on the Joint Select Committee on Deficit Reduction last week floated a proposal that includes massive tax increases on wealthy Americans. While their plan would also include some cuts to entitlement programs, the tax-code changes make up a significant portion, according to press reports.

    The Los Angeles Times reported: “Revenue would be raised mostly by bumping up the high-end tax bracket and limiting deductions for upper-income earners, those familiar with the talks said.”

    This isn’t exactly a surprise. President Obama and his liberal allies in Congress are waging a war against successful Americans. House Budget Chairman Paul Ryan (R-WI) spoke at Heritage last week about the divisive nature of Obama’s scheme.

    The so-called Super Committee, of course, could be an opportunity for Congress to reform the tax code. Writing in the Washington Times last week, Heritage’s J.D. Foster observed:

    But if tax reform is part of a deficit-reduction exercise because the language of tax reform has been co-opted to disguise a tax hike, then both the hike and the reform should and likely will fail. Be very clear — tax reform is revenue neutral as traditionally scored. If a tax proposal is shown to raise revenue, then it’s not tax reform, it’s just another big-government tax hike.

    As for that proposal floated by Democrats this week, it’s simply not a viable solution. This chart from Heritage’s 2001 Budget Chart Book reveals that Congress would need to increase tax rates on wealthy Americans to mathematically impossible levels to close future deficits.

    Posted in Featured, Scribe [slideshow_deploy]

    8 Responses to Chart of the Week: Taxing the Wealthy to Cover Future Deficits Won't Work

    1. tara says:

      those who read Obama clearly prior to his inauguration might be the only ones that are not up to their ears in debt. initially, he blamed those executives, and business persons, for the lack of equality. there isn't much spare change to throw around these days, so i am wishing and 'hope-ing' for a 'change' come 11-12!

    2. Rick says:

      The only reason the left's actions seem like nonsense is if you don't realize their ultimate goal: to force a collapse of the current government so that a new government, with a new constitution, can be forged from the ashes. A government without all those pesky "individual rights" and references to a "Creator" that gives them.

      Then their power will be complete. Totally rational.

      • Cheryl says:

        Amazing! The left says the same thing about the right! Any possibility we're all being manipulated by the cable news folks into being so scared that we must watch them all day every day?

        And seriously, is there anyone out there who doesn't think we should vote out every single person in Washington right now, and then put term limits on the new ones????

    3. Lloyd Scallan says:

      Wake up America and recognize this is not about saving the nation. It's about destroying it through forceably taking wealth form the haves and giving it to the havenots. It's about wealth redistrubtion and
      class warfare. It's about pitting Americans against Americans for political grain. It's about communism, socialism, and Marxism.

    4. Lloyd says:

      Math must not be taught in our indoctrination centers any longer. Heritage should overlay the job or job creation decline on this chart. They do say a picture is worth a thousand words, right?
      Semper Fi

    5. Cheryl says:

      Grammar, spelling and writing are evidently not being taught in the public school system either.

    6. Kinderlynn says:

      if taxing the wealthy were going to solve the US economic problems then why didn't we just tax the wealthy to avoid getting into these problems to begin with-remember that James Madison said "property was not made by government, but government made by and for it. The one primary and self-existent; the other secondary and derivative"- if we allow government to solve its problems by excessively taxing the wealthy then who will stop the government from taking away our freedom in other ways, the next step will be the government imposed maximum wages and federal rationing of good and services

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