The Democrat ‘Solution’: A 62% Top Tax Rate

The Democrat ‘Solution’: A 62% Top Tax Rate Image

Ronald Reagan once said that Democrats “never met a tax they didn’t like.”  Reagan also accurately pinned down the liberal philosophy about taxes and government: “If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”  That was about two decades ago.  Not much has changed since then!

The Wall Street Journal is reporting that Senate Democrats are looking options to increase taxes on the top-income earners in America.  For the record the term “top-income earners” is short for entrepreneurs, business owners, job creators, and those that are responsible for over 60% of America’s tax revenue.   Democrats think they are still not paying their “fair share” though.  They’d like to see the top-income earners’ tax bracket at 62%!  To put that into perspective the top federal tax rate when Reagan left office in 1989 was 28%.  The WSJ explains how they got to 62%:

  • Democrats want to repeal the Bush tax cuts which will cause the top tax rate to increase to 41.5%.
  • They also want a millionaire tax of 3% that pushes the top rate to 44.5%.
  • Add on an additional 2.5% increase in payroll taxes and you have a top rate of 47%.
  • ObamaCare calls for a Medicare surtax on “high-income earners” so now the top bracket is at 47.9%
  • President Obama has proposed removing the tax cap on Social Security income that is currently $106,800 a year.  That can add about 10.1% which would make the top rate about 58%.
  • Then of course you have state taxes.  After deductions another 4% is added to the top bracket making it around 62%!

If that were to happen do you care to guess how such confiscation of private sector money will affect the economy?  Rich or poor you the effects will be felt by all Americans – and that is precisely the goal!

The 62% total the WSJ came up with may not be a hard and fast number, but you get the point.  Democrats completely intend on promoting class warfare with the Robin Hood tax scheme.  Keep in mind that taxes on investment income is not even factored in the breakdown.  Progressives would actually love to have a 100% tax rate on top-income earners.

Even if Democrats were to fulfill all of their current greedy taxing desires it would hardly put a dent into America’s deficit problems. However, as I hinted at above that is not the point.  The point is to drive a wedge between the working class and those that create jobs and wealth in America.  Using labor unions, civil rights groups, and progressive activist organizations liberals want to inflame the “underprivileged” despite the fact that they are mostly to blame for condition of “underprivileged” Americans.  It’s a game they are playing and the players are you (the average American) versus them (the so-called rich).  Whatever lie works best is the one liberals will use.  Do you want to lose your Medicare?  Do you want granny to die?  Do you want your healthcare to triple in price next year because of Republicans?  No facts are needed to back up those claims – claims that are already being currently being made.  They only need to spark a fear of loss in you in order to spark hated towards the people who create the jobs in America.

At that point liberals simply need to wait until the right moment to launch a massive progressive movement.  The scene of such a movement can vary, but it almost always involves violence.  The obvious examples are the riots that have taken place in the UK, Greece, Ireland, France, Italy, and even some liberal states such as California and Massachusetts.  If you hesitate to believe that can ever happen in American on a large scale consider these comments by Bloomberg:

Achieving the fiscal consolidation necessary to avert a downgrade will test “social cohesion” and may involve rewriting the “social contract” between governments and their people.  People have to decide what level of pain they are willing to accept to have a healthy economy.

As I have said before, Bloomberg’s statement is bold but nonetheless true.  The troubling part is that many progressives welcome that test of “social cohesion.”