Libertarian Times

Social democrats in the Democrat Party are on a major campaign to raise taxes on the rich. Chris Hayes started his morning show with a call to raise taxes, challenging his guests to debate the pros and cons. Hayes openly admits that he is fully supportive of higher taxes on the rich, up to 70 or 80% even.

Taxing the rich will pay for a week or two of government spending, but I guess social democrats believe that every little bit helps. For the Left now it has a become a principle of fairness -- their version of fairness -- and it has nothing to do with reducing the debt or funding stimulus, because it will do neither.

The Left simply can't fund their agenda by taxing the rich -- they will wind up hurting the very government programs which now send money to Americans in need. For one thing, we live in a world with a large global market that's interconnected in ways earlier generations could not have imagined. At the level of wealth production, the activity is less national and more global. Corporations can operate their businesses anywhere in the world, and capital will flee to where it gets the best return.

If government wealth-confiscation begins running businesses off to other countries, it will ultimately reduce government revenues. American government has basically given large American corporations favored treatment at the expense of small businesses in America -- if government now begins to call in favors and starts taxing these corporations heavily, the corporations will likely do whatever they have to do to avoid the confiscation of their their wealth. Big Corporations will see the writing on the wall, that only they are producing enough wealth for government to take, and it will only get progressively worse as government's funding needs become greater from increased spending.

Until we have widespread economic growth which entails growth in small businesses, there will not be enough revenue to fund the progressive agenda. Democrats have promised 98% of the country that their taxes will not go up, and there's simply no way to get enough just from rich people to fund government spending. Once the world rejects our spending, government programs will be cut, and we all know that the poor will get hit the hardest - the middle class will use their clout to protect their government goodies, but the poor have no one to fight for them. This is what social democrats are creating in the name of fairness.