Late Saturday, the White House released a plan to make several tax hikes for upper-income families. After six years in office, it should be no surprise to anyone that Obama wants to increase taxes. These hikes include removal of tax breaks on inheritance tax and an increase in the investment tax. The hikes will equal 320 billion over ten years.
The reasoning behind this is breaks for the middle-class. The administration proposed a tax credit for working families, as well as an expansion of child care credits. The White House says that these moves will be what is needed to get the economy moving again. Senior White House Adviser Dan Pfeiffer told CBS on Sunday. “Now that the economy’s in a stronger place than it’s been in a very long time, we need to double down on our efforts to deal with wage stagnation and declining economic mobility,” Yet the question is, will these Robin Hood tactics actually work?
The Republicans say that it will not, and they are not going to pass such measures. With the now GOP controlled Congress, the President will have a harder time pushing such leftist policies through the system. Marco Rubio told, “Face the Nation” Sunday: “The notion … that in order for some people to do better, someone has to do worse is just not true,”
The idea, that we have to take from the more productive to give to the less productive, is a socialist lie. It is the more productive that does the hiring of the middle-class. Economic growth is achieved most effectively through the scaling down of taxes, across the board, and rewarding success.
As producers are able to keep more of what they make, they spend that extra income on products. These products begin to be in higher demand creating more jobs. As well, these people demand non-manufacturing or trade services. The trades in turn buy more manufactured good and can go on vacation. This begins to snowball, and we see growth, because the more people earn, the more has to be produced. A reduction in capital is counter productive.
Rubio continues: “Raising taxes on people that are successful is not going to make people that are struggling more successful. … It would also be counter-productive.” It is counter productive for two tangible reasons.
The first reason is the opposite of what I said before. As you reduce the capital earned by the wealthy, they have two choices. They can charge more for their product or invest less capital in growth and development. We find that they usually choose a mixture of the two. This means higher cost for the middle-class on goods they need. This result is fewer trade services for the rich as well. Again, this decrease, like the increase follows on down the line.
The second reason is that this kind of tax is theft. Because our government is spending money, it does not have on projects and in areas it does not belong; it must steal from its people. It has been said that it is class warfare. But more than that it is a denial of God’s word. The object of such moves, whether recognized or not, is the replacement of God by the government. We must never forget that God will not be mocked (Gal. 6:7). We cannot live in perpetual sin and God not bring the consequences to bear on us.
A staff member of Mitch McConnell told The Hill newspaper: “It’s not surprising to see the president call for tax hikes, but now he’s asking Congress to reverse bipartisan tax relief that he signed into law,”
This is proof of the problem I just alluded to, there is no direction so any direction is allowed. Without any authority but a blind pragmatism, we like blind men wander in any and all directions. If this trend continues, we will all fall into the ditch.