Taxes are Not the Same as Revenue

A subtle shift in political language has taken place over the past year or so. President Obama has resorted to calling "taxes" "revenue." But these are two different things. Taxes are a method for the Federal and State governments to collect what they call revenue. A business increases it's revenue (not necessarily profits) when it ups it's prices or sells more products and services. So them it would be logical to thing that the government can increase revenues by increasing the tax rate on the wealthy. Sorry, it don't work that way.

The reason it doesn't work is simpler than one would like to think. We are counting on corporations large and small to create jobs so people can go back to work. When these corporations are excessively taxed it hinders their ability to hire. Therefore, these corporations stagnate (do not grow) and many actually end up laying off workers. A smaller company means a smaller bottom line which translates into less taxes paid and therefore less revenue that the government collects. Also, fewer workers means that the work force is paying less taxes and less revenue received by the government.

President Obama is doing the opposite of what he should be doing to cause the economy to grow. The upshot of this is that Federal revenues will fall with the tax increases, unemployment will stay the same or go up, and the recession will be prolonged.

And here is the crux of the whole thing: Obama cares less about the economy than he does about bringing large corporations down. He wants everybody to be the same. He is therefore hurting the very people he wants to help because they still don't have jobs. Remember this: the poor will always be with us (biblical). And remember this also: If there is no financial reward for hard work, innovation, invention, and risk..... all of these things will cease and so will our society.

Obama is a misguided idealist, not a leader. He is involved in class warfare at the expense of our country. He does not understand economics. He will be a single term president.