President Barack Obama’s campaign to raise tax rates on the top 2% will cause far more economic pain to the 98% than to the truly rich. First, the truly rich have already demonstrated their ability to avoid much of the Obama tax hikes. At the same time, the higher marginal tax rates he demands will reduce the opportunities for economic activity, leading to slower growth and fewer job opportunities for the 98%. Finally, those with high incomes inevitably will shift much of the burden of Obama tax hike to those with lower incomes.
Let’s start with the ruse that the truly rich (as opposed to those who may make more than $250,000 in a single year of their life) will pay a lot more. These individuals have many ways to avoid the now higher tax rates. The perfect case in point is Costco co-founder, director and former CEO Jim Sinegal. In a prime-time speech at the Democratic National Convention, Mr. Sinegal explained why he supported President Obama:
“Business needs a president who has covered businesses’ backs. A president who understands what the private sector needs to succeed. A president who takes the long view and makes the tough decisions. And that’s why I am here tonight supporting President Obama, a president making an economy built to last. See, in order for companies like Costco to invest, grow, hire and flourish, the conditions have to be right. That requires something from all of us.”
Well, apparently all of us except Mr. Sinegal and his truly wealthy fellow Costco Board Members, who include such advocates for higher taxes as William Gates Sr. and Charles Munger.
(Excerpt) Read more at forbes.com …
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