AlBell
Philosopher
- Joined
- Mar 28, 2009
- Messages
- 6,360
http://townhall.com/columnists/thomassowell/2012/07/12/the_invincible_lie/page/full/
http://townhall.com/columnists/thomassowell/2012/07/13/the_invincible_lie_part_ii
A Democratic president -- John F. Kennedy -- stated the issue plainly. Under the existing tax rates, he explained, investors' "efforts to avoid tax liabilities" made them put their money in tax shelters, because existing tax laws made "certain types of less productive activity more profitable than other more valuable undertakings" for the country.
Ironically, the Obama campaign's attacks on Mitt Romney for putting his money in the Cayman Islands substantiate the point that President Kennedy and others have made, that higher tax rates can drive money into tax shelters, whether tax-exempt municipal bonds or investments in other countries.
In other words, raising tax rates does not automatically raise tax revenues for the government. Higher tax rates have often led to lower tax revenues for states, the federal government and other countries. Conversely, lower tax rates have often led to higher tax revenues. It all depends on the circumstances.
But none of this matters to Barack Obama. If class warfare rhetoric about taxes leads to more votes for him, that is his bottom line, whether the government gets a dime more revenue or not. So long as his lies go unchallenged, a second term will be the end result for him and a lasting calamity for the country.
http://townhall.com/columnists/thomassowell/2012/07/13/the_invincible_lie_part_ii
Ms. Borger may simply not know any better, but Barack Obama cannot use that excuse. When he was a candidate for president back in 2008, Charles Gibson of ABC News confronted him with the fact that there was no automatic correlation between the raising and lowering of tax rates and whether tax revenues moved up or down.
Obama admitted that. But he said that he was for raising tax rates on higher income earners anyway, in the name of "fairness." How higher tax rates that the government does not actually collect make any sense, whether from a fairness perspective or as a way of paying the government's bills, is another question. The point here is that Obama knew then that tax rates and tax revenues do not automatically move in the same direction.
In other words, he is lying when he talks as if tax rates and tax revenues move together. Ms. Borger and others in the media may or may not know that. So they are not necessarily lying. But they are failing to inform their audiences about the facts -- and that allows Obama's lies to stand.
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