Drudge is currently illustrating the magnitude of our nation’s budget deficit with a chart so shocking it’s almost comical.
But at least we can raise taxes on the rich to pay for it, right?
Wrong. If the government took 100% of earnings from those making more than a half-million dollars a year, it would add only $1.3 trilion to federal tax receipts. Even the most ardent demand-side economists who usually scoff at the Laffer Curve, will have to admit a 100% tax rate is going to yield significantly smaller receipts.
Barack Obama’s plans to hyper-inflate the government bubble while he taxes the rich at confiscatory levels, is so certain to collapse the economy that I can only conclude that he is a brilliant Rovian plant whose purpose is to finally drive a stake into the heart of the era of big government.
I only hope the nation survives that long.