In 2009 I listened as one Democratic politician after another stepped forward to endorse the “stimulus,” a bill that was to save us all from what would surely be the next Great Depression. Most of their ill-considered arguments contained copious amounts of economic fallacy seasoned with just a dash of truth to make them palatable. That truth is that if you raise tax rates during a recession you simply get a deeper recession — without raising any additional revenue.
Midway through 2010 with what is at best a tenuous recovery, and without any evidence that government’s spending spree is working, those same folks eying a reckoning with the voters in November are telling us that even more “stimulus” spending is needed. They have now ditched their cover story of not raising taxes in order to fully embrace their inner-redistributionist side. What does this portend for you and I? Six months from now we may experience firsthand how a nation’s economy performs after dramatically increasing tax rates on the incomes and capital that drive economic growth, and devaluing its currency. It ain’t going to be pretty, folks.
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