President Obama Ignores History Regarding Taxes
I have written more than ten dozen articles cataloging the stupidity of President Obama, but at no time is he more stupid than in regard to tax policy. As an example, it is well-known that given a choice between a tax policy that brings in 100 billion dollars in revenues and one that brings in a thousand dollars in revenues, Obama would choose the latter if it meant rich people were taxed a higher percentage than anyone else.
The reason for this is that Obama does not care about more money for the government, or even more money available to the government to spend on poor people; he only cares about "fairness." This is the problem with socialists: they do not care about bettering the lives of the poor but on worsening the lives of the rich.
Now some liberals may argue that Obama wants the rich to pay their "fair share" in order to raise revenues or reduce the deficit, however history tells a different story. We may argue about economic theories regarding taxation but it's hard to argue with the facts:
When Andrew Mellon was appointed Secretary of the Treasury by President Harding in 1921 he advocated lowering tax rates as a means to increasing federal revenues which Congress obliged by enacting the Revenue Acts of 1921, 1924, and 1926 reducing the top marginal tax rate from 73% to 24%. By 1929, in less than a decade, government revenues skyrocketed which helped cut the public debt of $33 billion to less than half that amount, proving the theory that lowering tax rates actually increases the amount of revenues collected by the government (1).
But facts do not matter to Obama and will not help change his mind because, as Chicago professor Richard Epstein observed, Obama is "surprisingly rigid, intellectually." (2)
More than 1800 years ago, Jewish sages had a name for a pious idiot who endangers the lives of others merely to foolishly stick to principle: a destroyer of the world - see my article The Chassid Shoteh - the Pious Fools of the World. Similarly, Obama is a socialist idiot who will destroy our country because he would rather have a tax policy that is "fair" rather than one that benefits the most number of people, especially the poor and unemployed.
Wikipedia - Andrew W. Mellon, Mellon plan
Mellon came into office with a goal of reducing the huge federal debt from World War I.
The top marginal tax rate was cut from 73% to 58% in 1922, 50% in 1923, 46% in 1924, 25% in 1925, and 24% in 1929. Rates in lower brackets were also cut substantially, relieving burdens on the middle-class, working-class, and poor households.
By 1926 65% of the income tax revenue came from incomes $300,000 and higher, when five years prior, less than 20% did. During this same period, the overall tax burden on those that earned less than $10,000 dropped from $155 million to $32.5 million.
Mellon's policies helped reduce the overall public debt (the national debt skyrocketed from $1.5 billion in 1916 to $24 billion in 1919 because of World War I obligations) from $33 billion in 1919 to about $16 billion in 1929.
Time Magazine, Taking Professor Obama's Class