When is enough enough? So asks Mr. Obama, and by asking this he inadvertently reveals his adolescent understanding of economics. He might be a former university instructor, but clearly his area of expertise was not Economics 101.
It’s no secret that the US Treasury is revenue hungry right now. Nor is it a secret that the income tax is the primary source of revenue for the Treasury. That’s why it’s puzzling to me that our intellectual superiors in high places seem to be doing whatever it takes to discourage people from generating more income. If higher marginal tax rates won’t discourage higher incomes, or threats of confiscatory penalties if some Congressman gets his panties in a wad over bonuses, then send out the Head Honcho and have him give a good tongue lashing to the offending parties who dare to make "too much" money.
If Mr. Obama really wants to raise more revenue, he should be doing everything in his power to encourage people to make as much income as they can, particularly among those in the higher tax brackets. He should also be encouraging businesses to increase profits instead of the insane approach of penalizing profits and subsidizing losses.
The income tax works best only if there is income to tax. Don’t discourage the only activities that will produce the revenue the government thinks it needs.
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