“I vote for Democrats for one primary reason. They raise taxes on the rich.”
So says Michael Sean Winters at In All Things, the blog of the contributors to America Magazine. Of course, most Americans, perhaps even Mr. Winter, generally need excuses to raise taxes on the rich. The hottest reason at the moment is to pay for universal health care coverage. Winter likes this reason. If passed, he says that it will be the “first outstanding example of a policy that reflects Benedict’s call for a more just society,” a slight departure from his predictions at In All Things back on November 25, when he said that the now-accomplished bailouts of the Big Three automakers and the passage of an economic “stimulus” bill would help “strike a more just balance in society.”
But I digress.
Winter believes that the way to promote “social justice” includes taxing the super-rich, which he defines as “families making more than $350,000 per annum” in order to establish a new federally-controlled health care system. The good news for medical students is that you, too, can be super-rich. The bad news for Winter is that there are far more reasons to oppose universal health care and cranking up taxes on well-off Americans than just the need to “put off buying that bigger boat for a month, or doing the repairs on the Condo in the mountains” and the desire to “keep the abortion funding out of the (health care) bill.”
For example, Winter acknowledges that some on the Right will “rant that the proposal will stifle investment,” before he dismisses it as “an argument that only an academic can make.” Right he is. Only an academic would argue that Winter is wrong in saying that higher taxes could not possibly reduce investment because “whatever happens between you and the tax man, you will make investments that will earn you more income to begin with.” An academic, or someone with money in the stock market who has ever been forced to make choices after Tax Day. Regardless of their merit in any given case, higher taxes reduce investment. That is not some partisan talking point. It is the fact that people cannot put as much money in bank accounts or the stock market when the government takes money away from them. If Winter really wants to take up to $54,000 more in taxes out of the hands of as many as 6 million Americans, he better expect less investment. (more…)