Friday, July 25, 2014

STUNNER: Obama sees no maximum limit to the tax rate

You know what they call it when the maximum tax rate hits 100 percent? Answer after the break.

The following excerpt from an interview with Dear Leader was handed to us over the transom by the inimitable James Pethokoukis:

Here is President Obama in a chat yesterday with CNBC’s Steve Liesman:

STEVE LIESMAN: Mr. President, I just want to pivot back one more time to domestic issues. You’ve said a bunch of times that getting the wealthy to pay a little bit more, and you’ve succeeded in raising that top tax rate to 39% or rolling back the tax cuts. Is there a limit there? Is there a limit to how much you believe the government should take from an individual in terms of a top tax rate?

PRESIDENT OBAMA: You know, I don’t have a particular number in mind, but if you look at our history we are still well below what, you know, the marginal tax rates were under Dwight Eisenhower or, you know, all the way up even through Ronald Reagan. Tax rates are still lower on average for most folks. And what that means is that we probably can make some more headway in closing loopholes that folks take advantage of. As opposed to necessarily raising marginal rates.

Obama’s response raises an interesting question: How high does he think tax rates could go without really damaging the economy? As my pal Liesman asked, what is the limit?

The president’s answer certainly suggests, at least to me, that he believes the US is nowhere close to the danger zone. If so, he is merely in sync with top left-leaning economists — such as Peter Diamond, Thomas Piketty, Emmanuel Saez — who argue for top rates in the 70% to 80% range, if not higher. Oh, and at the same time the high-tax crowd would close tax loopholes and increase tax enforcement to limit avoidance.

Answer: North Korea.

In fact, Obama's father was a hard-core Communist. During his time in Kenyan politics, Barack Hussein Obama Sr. challenged Kenya's government for being insufficiently socialist.

"Theoretically, there is nothing that can stop the government from taxing 100% of income so long as the people get benefits from the government commensurate with their income which is taxed," Obama Sr. wrote.

And you wonder where Obama got his economic illiteracy from.

Related: What Barack Obama Hid From His Readers.

1 comment:

Francis W. Porretto said...

Unfortunately, there was a federal court decision in the Thirties that supports what Obama says in the above. That decision ruled that there is no Constitutionally decreed maximum to taxation or tax rates. For Congress to leave the private citizen with any of his income is a matter of legislative discretion.