|Did You Forget What Happened At Enron|
Obama has also been all out in his assertion that we need to tax the rich to bring in more revenue so that we can get this pesky deficit under control. He doesn’t mention that he accelerated the level of deficit spending so we are now careening off a fiscal cliff. His logic and thought process to higher taxes equating higher levels of revenue are also very much off base.
|Treasury Secretary Tim Geithner|
Officials have said the reforms would actually raise money, despite the decrease in the rate, by making changes to provisions which Treasury Secretary Tim Geithner called "fundamentally unfair." The plan aims to raise $250 billion over 10 years.
|The Laffer Curve|
The lower you make the rate, the lower amount of revenue you generate. That is the accountants way to look at taxes, and why government numbers are always wrong no matter which party is quoting them. Even in the Republican numbers designed to poke holes in the Obama budget, I see usage of accounting numbers to make their point when convenient.
In reality, people's behavior changes significantly in response to tax rates. "At the margin" is what you need to focus on and get familiar with. Will the incentive to increase production and income increase if tax rates decrease on the next dollar made? Of course they do. More production then leads to higher amounts of revenue generated, even at lower rates. Of course, there is a limit to how low the rate can go before the curve starts to turn the other way.
|Sen. Orrin Hatch|
Sen. Orrin Hatch, R-Utah, ranking member on the Senate Finance Committee, made clear that he was not impressed. He complained that the new plan lacked detail.