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If we keep taxes low on America’s high earners, the terrorists win

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Matt Miller makes the ARGUMENT that it’s “inherently wrong” to grant tax relief to America’s best-off in a time of war and surging debt.

He says it’s also “evidence of the moral rot from which our enemies say America suffers.”

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31 Comments

  1. But his comments apply to everyone, not just the wealthy. Not just people that make more than X dollars. Why on earth does he feel that tax cuts for ANYONE is justified given his logic? It’s a constant source of humor to me that “wealthy” is generally defined as anyone that makes more than you – as in, tax them more cause they have more than me. But I know this is old grist and Pat will now just call me dumb.

  2. 1. End the conflict in Afghanistan. Cut military spending by at least 15 percent.
    2. Increase taxes on those making over $500K a year. All additional revenue should go toward debt reduction and nothing else.
    3. Cut the corporate tax rate in half, giving incentive for business to not only stay in the United States, but have overseas move their operation to our country, creating more jobs and increasing tax receipts.
    4. Reform entitlement spending. Increase retirement age, increase the top cut off rate Social Security taxes from 100K to 200K, institute medical malpractice reform, eliminate most of the ObamaCare mandates.
    5. Cut discretionary spending by at least 15 percent.

    Problem solved.

  3. Milton Waddams

    I agree with what Neftali proposes, although I’d cut the military by closer to 30%.

  4. Neftali,
    You present several ideas worth of consideration. However, it is not possible to apply any revenue ONLY to debt reduction until the budget is balanced and the annual deficit is zero. Otherwise all you do is trade debt reduction for an increased deficit and they offset each other.

    Also, the effective corporate rate, what corporations actually pay, is already at historic lows. Corporate income tax only accounts for about 14% of the federal revenue. Lowering the corporate tax rate further will have little impact on creating more US jobs or having companies move operations back to the US.

  5. Jerry – The United States has the second highest corporate tax rate of any of the 30 countries in the Organization for Economic Cooperation and Development (OECD) – a collection of the most economically developed countries in the world. The federal rate is 35 percent. Add on the average state corporate income tax and United States businesses pay a top rate over 39 percent. This is just below Japan which has a rate slightly over 39.5 percent.

    http://blog.heritage.org/2010/05/05/high-corporate-income-tax-rate-driving-jobs-overseas/

    Of course, you are correct about debt reduction. I would assume all necessary measures would first be in place to balance the budget, then we could increase taxes on the wealthy to drive down the national debt.

  6. The facts are that the actual rate, what corporations pay in taxes divided by taxable income, is about 25%, the same as the rest of the world. They do much better in terms of percent of GDP where [b]etween 2000 and 2005, U.S. corporate taxes amounted to 2.2% of the GDP. The average for the 30 mostly rich member countries of the Organization for Economic Cooperation and Development was 3.4%.

    So, do feel sorry for the poor corporations.

  7. why not have the lowest rate of the developed countries? We need the jobs.4

  8. Demand creates jobs, not taxes.

  9. john.wilson

    Well Jerry get out there and demand the private sector hire, so far only the federal government is.

  10. Jerry – Demand is arbitrary. Having lower taxes means business can advertise more for their products, thereby creating demand.

  11. john, your comment is meaningless.

    There is nothing arbitrary about demand at all. Advertising can help, but people need money in their pockets to create demand especially in a consumer-driven economy like ours, or the advertising does no good.

    Corporations are sitting on a couple of trillion dollars. If all it takes is advertising, why are they just sitting on the money?

  12. Low tax rates attract corporations to build factories and establish headquarters which creates jobs. Jobs create tax revenue for the government.

  13. Orlando Clay

    expdoc states: “Low tax rates attract corporations to build factories and establish headquarters which creates jobs.”

    You’re absolutely right, Doc. The only problem is that the factories and the jobs are in places like China and India, not the U.S. Meanwhile, the CEOs and stockholders pocket the savings, while kicking American workers to the curb.

    It is nothing short of astonishing how you gullible Cons keep falling for the same Republican fairy tales year after year after year. But, at the same time, credit has to be given to the leaders of your movement, as they bamboozled the American electorate once again this November. Putting the Republicans back in the driver’s seat after eight years of Bush/Cheney misery is like putting a mouse in charge of the cheese.

  14. When a corporation has decided that it is within its interests to build a new factory or establish headquarters, low tax rates may entice them to build or locate in a particular state, but these are local tax rates, not federal tax rates. States can and do offer tax incentives to companies. However, this does not work on a national level…and it operates after the fact — the fact being that the corporation has ALREADY decided to build or locate.

    The federal tax rate has little bearing on the expansion decisions of a corporation.

  15. In regards for last night’s House approval of the Obama compromise on extension of Bush Tax cuts…

    How’s this for irony:

    Tea Party darling Michele Bachmann voted against extending tax cuts for the wealthy.

    Far leftist Dennis Kucinich voted for extending tax cuts for the wealthy.

    http://clerk.house.gov/evs/2010/roll647.xml

    Of course their reasons for their respective votes are totally different, but the end result is…twisted.

    Oh yeah, more Democrats ended up voting to extend the Bush tax cuts than Republicans did. (because of the Democratic majority of the soon departed 111th Congress)

    Chew on that, liberals.

  16. John.Wilson

    These links seem to suggest tax rates do matter. We need to close the loopholes that allow the following as well;

    “Google cut its taxes by more than $3 billion over the past three years and drove its overseas tax rate to 2.4 percent. Jesse figured Google boosted after-tax earnings by 26 percent last year alone with just some clever tax tricks.”

    http://blogs.forbes.com/beltway/2010/10/31/would-trimming-the-u-s-corporate-tax-rate-matter/

    http://www.investors.com/NewsAndAnalysis/Article/557033/201012161856/A-Rate-Which-Lives-In-Infamy.htm

  17. Orlando,

    It is nothing short of astonishing how you libs keep falling for that class warfare, capitalism is evil fairy tale.

    You’re right, the manufacturing jobs have gone to India and China because workers there will work for less. But those jobs are never coming back here. We need to attract jobs for this century not the last. We need to keep corporate headquarters in the US and allow establishment of new, technologically oriented jobs in this country.

    If liberals would just get over the fact that it is the job of a corporation to make money for it’s investors and that when such profits happen, jobs inevitably follow, you would be much closer to understanding how to let America thrive in this century.

  18. The last resort of the plutocrats and their stooges is to cry “class warfare!”

    Whenever you hear that term, you can pretty well figure that somebody’s getting the shaft to the benefit of the greedy.

  19. I love the fallacy that the “evidence of the moral rot from which our enemies say America suffers.” has anything to do with our tax structure or treatment of the so called “rich”. The reason that the cave men hate us is because of our, and hate to put it this way, progressive values. They hate us because believe that women are equal to men and are not property. They can’t stand freedom or religion. We believe that homosexuals should not be stoned to death. We believe that you girls should not be married off to old men. I could go on but you get the idea. It has nothing to do with money and everything to do with culture. If you want to call they have a “culture”.

  20. Of course lower taxes increase profits and corporations earn profits for their investors, profits which go to executive perks and benefits, and investors dividends (taxed at half the rate of income.) None of this leads to an increase in demand for their products/services and hence none of this leads directly to jobs. Corporations are all about profits and jobs are an expense which they try to minimize – hence the movement overseas to lower cost labor.

  21. I agree Pat. I think it’s sickening how Democratic politicians continue to foist policies of failure on the poor in this country merely to retain the power they have over them.

  22. John.Wilson

    Here is what class warfare has come to, I guess Beck got him fired up

    “Clay Duke, the man who opened fire on a Florida school board Tuesday, posted a “last testament” on Facebook decrying the wealthy and linking to a slew of progressive sites including theprogressivemind.info and MediaMatters.org.”

    The chilling Facebook statement, posted under the “About Clay” section, talks about being born poor and how the rich “take turns fleecing us”:

  23. Millard Fillmore

    My question for Matt Miller would be: If it is about “shared sacrifice” (and I sincerely believe that we should have that broad discussion/debate, and I wish we had leaders who were brave enough to raise it) … then why raise taxes only on the rich?

  24. With the tax bill just passed by Congress, we see taxes increased for the poor and decreased for the rich with the trade off of Make Work Pay for a decrease in SS withholding. That does not sound like “shared sacrifice” to me.

  25. Jerry – I don’t understand your last post. Just how are taxes increasing for the poor?

  26. Neftali,
    I linked to the information.

  27. But Pat, we aren’t the ones stirring up the class warfare. It is ALWAYS the libs who spew hatred at the wealthy (even though that’s the only place that jobs come from). You don’t find Cons spewing hatred of the non-wealthy – partly because many Cons aren’t rich. But somehow the libs just hate the wealthy with a passion. That’s where the class warfare comes from.

    Sure we can all hate what some of the robber barons do, but those people are a small minority of most business owners or CEO’s.

  28. Paul Ryan nails it. Thank God the President was held hostage by the Republicans and forced to do the better thing.

    http://www.youtube.com/watch?v=sHcXtG_C3qM&feature=player_embedded#!

  29. Kevin says “You don’t find Cons spewing hatred of the non-wealthy.”

    Oh, no, of course not. Conservatives would never mock the less fortunate.

    Sure, you’ve got your occasional Republican talking point about how unemployment benefits only encourate laziness among the riff-raff. And yeah, you sometimes get guys like Republican Sen. Orrin Hatch, who characterizes jobless benefits as “giving cash to people who basically are just going to blow it on drugs.”

    But, hey, those are isolated instances. What’s really heart-wrenching is when rich people are victimized by unkind remarks from their economic lessers. That kind of thing is just unacceptable. People who say mean things about wealthy folks should be shunned by polite society — perhaps even locked up. They’re un-American, that’s what they are.

  30. They are not un-American. But they are certainly counter productive. Such class warfare does nothing to make life more fair or make anyone happier unless their happiness is based on pure spite.

  31. Millard Fillmore

    Not to pick a fight here, Jerry…but….I have read the material at your link about 75 times and — the best I can understand, and the info at that link is not very understandable — the chart shows that people at the lower incomes are also getting a 2% tax cut.

    The author in the piece you cite later goes on to point out that public employees aren’t getting the same 2% payroll tax cut as other workers…but…since they don’t pay into Social Security to begin with, one might ask…why should they?

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