Posted by AzBlueMeanie:
Excellent! Mr. Burns from The Simpsons explains the so-called "fiscal cliff":
"Think of the economy as a car, and the rich man as the driver. If you don't give the driver all the money, he'll drive you over the cliff. It's just common sense."
Video below the fold.
Two major problems with your theory. First, there is no empirical evidence that the wealthy investor class withdraws from the investment market because of higher marginal tax rates. The top marginal tax rate was 90% until the 1964 revenue act which reduced it to 70% — twice the rate it is today. America achieved its greatest economic success in the post World War II era when the top marginal tax rates were what conservatives call “confiscatory” today. As Warren Buffett recently said, ivestors will always invest.
Second, the investor class today is not building companies, very few are entrepeneurs. They are investing in quick return exotic investment schemes that are highly speculative in the casino capitalism shadow markets. This is not the kind of investment that we should be encouraging. It should be long-term investments in growing businesses, expanding markets, and job creation.
Think of the driver as essential. If you take 60 percent of his money he won’t work for you. He has choices and you don’t have the talent required start and build a company. Those talented people are making those other choices and now there arent any jobs for poor people, young people and a trillion dollars less to do the good things of government.