RealClearMarkets - Why Taxing the Rich Does Not Work: "Good news," the president tells the workers. "We are going to be spreading the wealth. We are raising taxes on millionaires and billionaires-like Reginald Bigbucks III-and we are going to spend the money to benefit the middle class, people like you."
Joe raises his hand. "What do you mean?" he asks. "I mean, like, what is actually going to happen?"
Obama explains, "To pay my new taxes, Mr. Bigbucks is handing this factory over to the federal government. We are going to tear it down and sell it for scrap. Then we are going to use the money to extend unemployment benefits for another 99 weeks."
"Oh," Joe sighs. "Well, then, I guess that I'm going to be needing those unemployment benefits."
If the above example strikes you as fanciful, consider the following. To "tax" is to take away something from someone and give it to the government. "The rich" are rich because they own a lot of assets. So, what it means to "tax the rich" is to take assets away from rich people and transfer them to the government.
O. My. Lord. This is an excellent and short RTWT for the economically illiterate. Pretty much everyone in other words...
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