Raising Taxes doesn't raise tax revenues

This is a myth the fiscal liberals and haters of freedom have spread. Imagine if the government took 100% of your salary. Would you work? Of course not. Why would you? This is just an illustration of how absurd it is to say that always raising the tax rate raises tax revenues.

There are certain situations when raising tax rates raises tax revenues. If taxes were at 1%, raising to 2% might not affect the number of people choosing to work very much but could dramatically increase the tax revenues. This is not the situation we find ourselves in today.

Mother Jones magazine, of course, does not understand this fact as shown in this article. They claim that the Republicans want to keep the tax rate at the low low rate of the federal government stealing more than 1/3rd of people's salary to an even higher rate. That sounds fine if you believe in redistribution, but even if you believe in redistribution you should not want to increase the tax rate. As this chart shows, tax revenues are higher when tax rates on people are lower than they would be under the proposed Obama plan. Notice what this means. There will be more money for public works and services if we let the rich keep more of their money. It is the very definition of a win/win. How is this possible? First, people will choose to take higher paying jobs. Second, people will invest more creating increased employment, something we desperately need to commence. Lastly, people will feel more comfortable spending their money, further increasing employment if they have lower tax rates. This was the very premise of Milton Friedman's marquee book The Monetary Policy of the United States.

The practical reality is that the left and haters of freedom, like Mother Jones, knows these facts. They do not want to tax the rich because they love the poor. They want to tax the rich because they hate the rich. They believe in punishing those who have more than me or you. You cannot tax the rich enough to make the poor wealthy. It just isn't possible. People need to be responsible for their own actions. They need to work towards the American dream not collect this week's dream at the welfare office. No one ever said the American dream was easy, but you will never get to fulfill it standing in the welfare line waiting for someone else's money. It is time every take a little more responsibility for their actions.

For what it's worth, from my current economic standing I cannot even see the rich, let alone the super rich. I am in debt up to my eyeballs, but I did it to chase the American dream.