History Proves Conservatives Right on Taxes.
The Wall Street Journal has an interesting article, one that goes into far more detail than my own reading on the subject. I know of course, and have quoted many times the historical fact of President Kennedy's tax cut results. I know and have quoted many times how President Reagan's tax cuts led to a doubling of collected taxes during a ten year period. You read that right, in 1980, the IRS collected roughly $500 Billion. In 1990, the same IRS collected roughly $1 Trillion.
I know the historical anecdotal evidence against high taxes. I know that the Luxury Taxes of the 1990's caused entire segments of our population to lose their jobs. Senator Kennedy claimed that the rich would be paying their fair share finally.
However, the Rich took their money, and bought their yachts elsewhere. The boat building industry in Senator Kennedy's state suffered an 88% decline in sales and service. Even these days, those high taxes are avoided like the plague, like with Senator Kerry who was just outed for parking his Yacht in Rhode Island where there are no taxes.
I learned from this article that this historical example trends much farther back into history than I thought. It goes all the way back to the Great Depression. President Hoover thought it would be a good idea to tax the nation into prosperity. It didn't work obviously. History clearly demonstrates that high taxes are never a good thing for the economy, and never raise the funds that the Politicians claim they will. Instead, we see whole industries wiped out in an effort to get the Rich to "Pay their fair share."
The article points out that under our current taxes, the riches 1% of wage earners are paying about 3.3% of the Gross Domestic Product in taxes. Yes, that's right. I had to read it twice myself before I grasped it. In other words, 3.3% of what every single person, business, corporation, earns in this nation, is paid in taxes by the richest 1%.
So as Nancy Pelosi and President Obama tell us that the Rich aren't paying their fair share, think about this. How much less will they be paying when like Senator Kerry they take their funds or assets to another location where they're not going to be taxed so highly.
The nation of St. Kitts and Nevis has very liberal citizenship opportunities for those with the money, you have to wonder how many of our nations wealthy will be relocating to a nation like that instead of being blamed for their success here.