THE “MILLIONAIRE TAX” CANARD

So here are the latest numbers I have heard. In February the President said his budget proposal would entail an annual deficit of $900 billion. (I heard him say this on TV, but I don’t believe he ever submitted this as a budget). Recently he said on TV that his millionaire tax would raise $66 billion in taxes in the coming year.

So is it that difficult to do the math with these two numbers? It is clear that the millionaire tax the President proposes does little to address our national debt issue. If you don’t think our national debt is an issue that’s another problem, but even then you will have to agree that monies raised by a millionaire tax do little to address our financial needs. Right? $900 billion deficit, $66 billion tax receipts.

The other side of the coin, of course, is what this tax might do to job creation. In a $15 trillion economy, a one per cent drop in economic activity computes to a loss of $150 billion per year. Will the diversion of $66 billion from investment to taxes cause economic activity to slow a bit? Or do you believe that the government is responsible for creating economic activity and thus jobs?

And whatever you believe, the numbers seem to say that the millionaire tax would be a small part of a plan to put our national debt and thus our financial stability on a long term sustainable basis. Where is the plan for that?

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