Economy’s weak, so let’s spend and tax … huh ?

I continue to be dismayed by the Administration’s lack of business savvy, economic unorthodoxy (despite lack of success), and steaming contradictions …

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Excerpted from WSJ: Liberal Tax Revolt, July 23, 2010

Only in the age of Obama have Democrats convinced themselves that the best “stimulus” is higher spending and higher taxes.

There’s nothing like the prospect of an electoral rout to concentrate the incumbent mind, and so all of a sudden rank-and-file Democrats in Congress are saying maybe they shouldn’t let the 2003 tax rates expire after all.

The revelation that “as a general rule, you don’t want to be  raising taxes in the midst of a downturn.” tax increases has recently been heard from Senators Evan Bayh of Indiana, Ben Nelson of Nebraska, and, most surprising, even from Kent Conrad of North Dakota. On a scale of unlikely events, this is like the Pope coming out against celibacy.

These are hardly supply-side conversions, but they’re a start.

As for  Pelosi,  Geithner and Obama, they remain prisoners of their spend-and-tax dogma.

Geithner declared that the tax increases will arrive as scheduled.

So the same Mr. Geithner who says the economy is weak enough that we must have new spending “stimulus” says it is strong enough to endure a huge tax increase.

Go figure.

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New data from, of all places, the Democratic-run Joint Committee on Taxation show that in 2011 roughly 750,000 taxpayers with net business income will pay the highest marginal rate of 39.6% or the next highest bracket of 36% (up from 33%) – that’s a higher rate than Goldman Sachs will be paying.

About half of the roughly $1 trillion of total net business income will also be reported on those returns.

In a stroke, that will make tens of billions of dollars unavailable to invest or to hire new workers.

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