More ECON 101: Taxes and Revenues

To paraphrase Will Rodgers, A Democrat never saw a tax he didn't like. But despite the best evidence, Democrats still think that raising taxes will raise revenue. In reality, all taxes actually do is raise the overall cost of a good. And the more something costs, the less of it will sell. Here's a great example in Maryland:

Additional Budget Cuts Are Proposed - washingtonpost.com:

"Budget Secretary T. Eloise Foster said she plans to recommend at least $250 million in spending cuts next month to help close the shortfall in the state's $14.5 billion general fund. Some reserve funds would be used to bridge the gap, too, Foster said.

In addition to cuts for this fiscal year, which began in July, reductions in spending would be made for fiscal 2010, for which budget analysts now project a shortfall of about $1 billion...

The announcement, confirmed by lawmakers and legislative aides briefed yesterday, is prompted by lagging revenues in a separate fund for transportation projects. Two of those revenue sources, the gas and titling taxes, have slowed considerably because of higher gas prices and slumping car sales."

Bush lowered taxes and got a 20% increase in revenue. And so it is shown once again: lower taxes to raise revenue.

And what do we do with young Obama, so hell-bent on raising taxes on the wealthiest Americans, who are also those who do all the investing that creates jobs?

Like it or not, because of the sheer amount in taxes they pay, and the huge investments they make in our economy, the wealthy do the real heavy-lifting in our economy. Let them have their cake; they baked it!