President Obama apparently has the Republican Party all figured out. He told Al Sharpton in a radio interview yesterday:
"Well, my sense is that their basic view is that nothing is important enough to raise taxes on wealthy individuals or corporations. And they would prefer to see these kinds of cuts that could slow down our recovery over closing tax loopholes. And that's the thing that binds their party together at this point. This is a major argument, obviously, we've been having for the last three years."
Adding to this statement, Al Sharpton then told MSNBC that the President told him that “he did not get all that he wanted from the rich.” Well of course not! A $600 billion tax rate increase along with the ObamaCare tax increases isn't enough; Now he has to go after deductions and loopholes in order to increase taxes more. There will never be enough demagoguing against the rich to satisfy this President. This is what drives him every day, and he thinks it is a winning argument with the American people.
First let's get to the absurdity of his argument that “nothing is important enough to raise taxes on wealthy individuals or corporations.” Republicans do not want to raise taxes on rich people and corporations because it is not the solution to solving our nation's spending problems. It mathematically isn't. In 2011, Walter Williams wrote a column which illustrates so clearly how this “tax the rich” argument is just plain dumb. In his column, he assumes that government spends about $3.7 trillion a year, which works out to about $10 billion a day. Using those parameters, consider the following:
- We could impose a 100% tax on income earned by Americans earning over $250,000 a year, and it would yield about $1.4 trillion in revenue for our government. That is enough money to run our government for 141 days.
- Add to that all of the corporate profits earned by Fortune 500 companies, and you get another $400 billion in revenue for the government. That runs our country for another 40 days.
- Then you can take all of the wealth – stocks, bonds, yachts, mansions, etc – of every billionaire in America and you gain another $1.3 trillion in revenue for the government.
So all earnings over $250,000 have been confiscated, all profits from top corporations, and all the wealth from billionaires in America, and we have generated enough money to run our government for about eight months.
Now let's go back to Obama's comment. Republicans don't want to raise taxes because this isn't the answer to our real problem, which is government spending! Is this a principle that unites Republicans? Absolutely. But he is wrong to imply that it is only to protect the wealthy and corporations, and he is wrong to say that it is the only thing that unites Republicans.
What unites Republicans, particularly those who associate themselves with the Tea Party, is limited government, spending within our means, restructuring our unfunded liabilities (the real problem facing this country) so we can preserve something for our grandkids, individual responsibility, freedom. These are just some of the many factors that should be uniting Republicans. These are the fundamental principles that bind, while tax increases is a policy wedge that Obama is using to drive us apart.