Professor Antony Davies is back, and brings logic and facts to the ongoing debate over tax the rich economics. In his easily followed video, the economic model in America validates that raising or lowering taxes increases the amount of revenue the government receives only slightly, whether the rich are taxed the current 35%, or the 90% they were stifled with just 60 years ago.
Picture courtesy of Progressive Think.com
However, what does change is economic growth, and the amount of money the worker has to improve their standard of living. By decreasing overall GDP and growth when you tax corporations and the rich who actually create jobs, the PERCENT of revenues by the government remains the same, while actual revenue itself decreases. Subsequently, the opposite happens when you lower taxes, as GDP growth creates a larger pie for the government to receive more money.
So you see, the argument that Obama, Buffett, and all other Marxist/Socialist/Progressives make when calling for higher taxes on the rich, is simply a process of class warfare and NOT a means to increase revenues to balance the budget, or lower the deficit.
In the scope of progressivism and marxism, it isn't about raising up people to be equal, but about bringing everyone else equally down. Equal and poor, not equal and wealthy.