The Numbers Don’t Support Taxing The Rich As A Fiscal Cliff Solution

The narrative being used against Republicans is: “They are the party of the rich and won’t make them pay their fair share.” The Republican party, officials, and candidates have done a terrible job fighting back against that lie.

I’m going to leave the whole how much is fair and I think 1% of the population paying for 40% of Government argument alone for today and focus on the heart of the matter that Republicans need to spread far and wide.

The reason the national debt is sky rocketing and the deficits are growing is not low taxes, its high spending. Now Democrats are seeking a return to the Clinton era tax rates on the “wealthy”. They claim that was the last time we have a surplus.

There are 2 big problems with that argument.

  1. The Republican House lead by Aremy & Gingrich forced Clinton to cut spending.
  2. The 2000’s ended with the dot com bubble. Scores of shell companies were cooking their books in the infancy of the internet boom to get rich quick. Tax revenues were sky high from companies that produced nothing. Similar to the Housing market collapse at the end of the Bush years, the revenue was booked, but it was a mirage not a trend.

Here’s a chart that I made to compare the actual numbers of Revenue and Expenditures from Clinton thru Obama.

Federal Spending vs Revenue Chart Clinton Bush Obama Dec 4, 2012 by: Andy Aplikowski

(Click to enlarge)


The peak of Clinton Revenue (taxes) was in 2000 at $2.025 trillion. Again, that includes the dotcom bubble revenues. You can see that it was a 1 year $200 Billion increase from the previous year.

Just look at the numbers. Obama’s estimates for his next term are pipe dreams.

So what’s the point? Some conservatives and Republicans are throwing up their hands, saying its too late. The point is that Republicans have done a terrible job pointing out the course of the deficit problem, SPENDING.

Look no further than Europe to see that what Obama wants to do won’t work.

Ever expanding government through entitlements and rationed freedoms and a central planned economy where winners are picked based on feeling, emotion and willingness to help enact the political agenda of the left, not free markets – Societies like these eventually run their course. Growth stops, dependency skyrockets, and society is torn apart. Class warfare ensues, and civil unrest takes place.

Stalin was the key to creating the socialist Soviet Union. He tweaked Marxism to create a need for Government, a dependency on Government, that the only hope for everyone to have a shot of having basic necessities was if Government gave it to you.

We are at a fork in the road of America and Obama and his minions on the left know, they have the public convinced that it is not ok for you to go take what your neighbor worked hard to buy themselves, but don’t worry, the IRS will take their money away and Government will give you what you want.

Its like that old saying, “As soon as people realize they can just vote themselves more money, the Republic is lost.”

Of course the media is absent in reporting what is really going on. My suspicion is that because they like it.

This  fiscal cliff in America is not coming on January 1st. Its not a crisis of just getting Republicans to cave on taxes. Grover Norquist’s demise will not mark the avoiding of the fiscal calamity.

It will be if we as a free people do fall for the ponzi scheme and promises of the socialist left and pretend that raising taxes on a few rich people will solve a budget crisis created entirely by skyrocketing spending. Spending that was promised decades ago by the first wave of socialist sympathizers in America.

It feels so good to just think that this is a one time rip the bandaid off and everything will be just fine fix. A one time bailout of the Federal Treasury and shazam! everything will be just fine. Government spending can continue to grow at will, and there will always be a 1% to take more away from to redistribute to the other 99%.



Spending is the thing that is going up at unsustainable rates. The only way to balance the budget with out serious spending reductions is huge tax increases.

You could take away every dime of income that the 1% have and it won’t even solve the budget deficit for one single year. In doing so you will have eliminated some of that 1% by bankrupting them and removing their ability to operate their businesses. Which means there will be less of the 1% to get that revenue from next year. Meaning the deficit will grow again and you are right back where you started, but now there are more people dependent on Government.

Obama wants $1.6 Trillion in new tax revenue over 10 years as his answer to the spending crisis. He and his core supporters like Keith Ellison refuse to even consider much needed reforms to the growing federal spending programs creating the deficits in the first place: entitlements.

Somehow taxing Peter to pay Paul is going to balance the budget?

But its for the public good. There is just so much good Friedman material…..

How did we get into the Big Government mess? Liberal do-gooders!

The fiscal cliff debates are about spending.

There is no Santa Claus coming with a big old sack of permanent revenue to bail out America. We spend too much bloody money. Senator Klobuchar is the new queen of do-gooders. She’s an ambulance chasing former County Attorney who is becoming the next Ralph Nader. For every economic action there is a reaction. Ban lead toys for kids, Polaris gets hurt. Require drain covers on pools, public pools close.

There’s always a reason to expand Government…

You can also always find someone you can make people hate and take away what they have to give to someone else. The problem is you eventually run out of other groups of people.

There is no free lunch.

I know some of you out there are saying, ok ok, there aren’t enough rich to make it work but we just can’t even think about cutting anything … and then you think: What about going after businesses for more revenue? Yeah, yeah, that’s got to be the ticket.

I have some bad new for you, there is no Santa Claus.

This is a long post/ Point it

Its the spending stupid. Spending is the reason our debt is so high. You can’t tax your way out of a spending problem.

Ask Europe.

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