Crossposted from Flopping Aces
Check out this segment of the debate last night which depicts quite clearly just how ignorant Obama is on how an economy works. It’s a basic concept really, revenue goes up for the government by lowering taxes. Here he is asked why he would consider raising the tax rate on capital gains when revenue has always gone up for the government when its lowered:
MR. GIBSON: All right.
You have however said you would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, “I certainly would not go above what existed under Bill Clinton, which was 28 percent.”
It’s now 15 percent. That’s almost a doubling if you went to 28 percent. But actually Bill Clinton in 1997 signed legislation that dropped the capital gains tax to 20 percent.
SENATOR OBAMA: Right.
MR. GIBSON: And George Bush has taken it down to 15 percent.
SENATOR OBAMA: Right.
MR. GIBSON: And in each instance, when the rate dropped, revenues from the tax increased. The government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?
SENATOR OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness. We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year — $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That’s not fair.
And what I want is not oppressive taxation. I want businesses to thrive and I want people to be rewarded for their success. But what I also want to make sure is that our tax system is fair and that we are able to finance health care for Americans who currently don’t have it and that we’re able to invest in our infrastructure and invest in our schools.
And you can’t do that for free, and you can’t take out a credit card from the Bank of China in the name of our children and our grandchildren and then say that you’re cutting taxes, which is essentially what John McCain has been talking about. And that is irresponsible.
You know, I believe in the principle that you pay as you go, and you don’t propose tax cuts unless you are closing other tax breaks for individuals. And you don’t increase spending unless you’re eliminating some spending or you’re finding some new revenue. That’s how we got an additional $4 trillion worth of debt under George Bush. That is helping to undermine our economy, and it’s going to change when I’m president of the United States.
MR. GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.
SENATOR OBAMA: Well, that might happen or it might not. It depends on what’s happening on Wall Street and how business is going. I think the biggest problem that we’ve got on Wall Street right now is the fact that we’ve got a housing crisis that this president has not been attentive to and that it took John McCain three tries before he got it right.
And if we can stabilize that market and we can get credit flowing again, then I think we’ll see stocks do well, and once again I think we can generate the revenue that we need to run this government and hopefully to pay down some of this debt.
So let me get this straight. Obama acknowledges that revenue “may” go down (no may…it does) but Obama wants to set tax policy because 50 individuals made 29 billions dollars. Nevermind that they paid 5 billion in taxes….that doesn’t matter. No, its all about being “fair.”
When it comes down to brass tacks its about getting even with the rich.
also:
The Arrogance of Obama
Last night’s debate cemented the fact that he is unqualified for and ill-prepared to be President!
As Curt pointed out earlier, the Obamatons were all whining like spoiled brats today! “Wah! Wah! Wah! the debate was sooo unfair to Obama!” Obama got hit hard last night in the presidential debate in Philadelphia with repeated questions that go to the heart of his character. And Democrats called that “trivial?” You would think after realizing how bamboozled they were by the Clintons, which some of them have only recently discovered, they would be loathe to make the same mistake again.
But then, YOU, dear reader (most of you anyway) would think. That’s a skill not yet required by the Obamatons.
The whining that most Obamatons engaged in today seemed to be based on orders from headquarters as the candidate himself engaged in yet another of his now famous variations of “if you dare to question me, you’re creating a distraction from the issues.”
“Last night, I think we set a new record because it took us 45 minutes before we even started talking about a single issue that matters to the American people. It took us 45 minutes!”
“Forty-five minutes before we heard about health care. Forty-five minutes before we heard about Iraq,” he continued. “Forty-five – 45 – minutes before we heard about jobs. Forty-five minutes before we heard about gas prices.”
Obama Doesn’t Get It!
What the arrogant and defensive Obama doesn’t seem to understand is that Americans won’t trust him to address these other issues that he claims to care so passionately about if we can’t be certain about his character. And up to now we haven’t learned very much about the man except that he gives great speeches (sometimes) and people swoon.
We sure can’t hand the keys to the White House over to a man who insists that we have no business inquiring into his character.
Especially when what we have learned thus far about his background leads many of us to have deep suspicions.
And here’s a counterpoint video which should drive home the matter:
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