that 2/3s of the people have no idea of what the heck is going on and have no idea that they have no idea. The number is higher among Democrats. A recent opinion poll finds this breakdown of opinions on raising taxes on individuals earning more than $250,000 a year:
| Tax Hikes on $250K+ | |
|---|---|
| Would… | Total % | Help economy | 44 |
| Hurt economy | 22 |
| No difference | 24 |
| Don’t know | 11 |
To refresh your memories when the full set of tax cuts, both for individuals making more than $250,000 and those making less, were enacted the effects were very short-lived. Essentially, the tax cut had no effect.
IMO the smart money should be behind “No difference” with an honorable mention for “Don’t know”. I see no way it would actually help the economy but a lot of Americans and, particularly, a majority of Democrats seem to think it would.
This is Democrats grabbing onto a partisan talking point and running with it thoughtlessly. Are there legitimate concerns for concentration of wealth? I certainly think so. Can raising taxes be used to partially correct that? Possibly. Would those taxes improve our economy? Not to my knowledge, and I’d like someone to explain how a government increasing the net drain on private sector financial wealth generates a job or increases real wages.
I would pick “Hurt economy” though if allowed a few caveats, I would add:
a. Its slight, I believe some studies suggest a few decimal points off of GDP;
b. If the economy wasn’t so weak, I might pick “No difference.”
c. If those tax increases were part of a comprehensive tax and spending plan, I might pick “No difference.” Implementing Obama’s twelve-year critique of the Bush tax cuts will just leave most assuming that significant tax increases will follow.
I think higher marginal tax rates on what is essentially income-to-be-used-for-consumption for small business owners could increase re-investment in the business so that they can later sell it at the lower capital gains rate, or increase consumption with a friendlier tax rate later on.
You’ve said before that high MTRs just change which pot the rich choose to get their money from. I think that some of those pots are more helpful to the overall economy than others. Consumption income least of all.
That’s a very unscientific analysis. You can’t pin down the effect of any policy change without isolating all the other factors. I laugh every time I hear some idiot say, “The dollar fell today on news that ….”
There are thousands of world events that can cause the dollar to rise or fall and thousands of economic factors that influence an economic recovery.