May 25, 2012 Rabbi Yonason Goldson: Thinking About Faith Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite David G. Savage: Supreme Court limits protection against double jeopardy Ashley Powers: A nightmare, then conviction is tossed Erika Bolstad: Temple cancels Wasserman Schultz speech Deroy Murdock: WWII hero Karski to receive U.S. Medal of Freedom Kimberly Lankford: Health Coverage for College Grads New therapy helps tinnitus sufferers Solar Impulse takes off on first intercontinental flight without using a drop of fuel The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread May 24, 2012 Jeff Jacoby: The peace process battered Israel's reputation Near-nuclear nation threatens to walk out of summit unless it gets its way Clifford D. May: What Iran's Rulers Want Michael Muskal: 'Pro-choice' position hits record low, according to poll Chris Farrell: Are We in a Tech Bubble? 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What you need to know before you buy Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again Environmental Nutrition Editors: Get the facts on palm sugar sweetening The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES) May 14, 2012 Richard Simon: Purple Hearts for domestic terror victims? Nando Pelusi, Ph.D.: The privacy paradox: Surrounded by strangers, we risk isolation, anxiety Chris Farrell: Investing Lessons from the Great Recession Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone Harvard Health Letters: Heart disease and dementia Tiffany O'Callaghan: New hormone mimics effects of exercise without the sweat The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight May 11, 2012 Rabbi B. 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Jewish World Review February 24, 2010 / 10 Adar 5770 The chief economic worry about Dems By Robert Robb http://www.JewishWorldReview.com | The chief economic worry about Democrats is that they do not understand or appreciate the role of investment capital. Democrats tend to view a certain quantity of economic output as a given. It just happens. So, the key question of political economy is how to justly distribute the benefits. They also tend to view public capital as a substitute for private capital, or even superior to it. But no quantity of economic output is a given. It doesn't just happen. Investment capital plays a pivotal, irreplaceable role in making it happen. And public capital isn't a substitute or superior. Government can only put into an economy what it takes out in taxes or borrowing. Producers have to produce before consumers can consume. But producers cannot produce ex nihilo. Investment capital provides the financial bridge between production and consumption. The provision of investment capital has become much more diffuse. About half of American families own stocks and bonds. Anyone with a savings or money market account contributes to investment capital. In reality, however, the affluent provide most of the country's investment capital. They are the ones with discretionary income. What the rich do with their money is very important economically. The Democrats want to raise taxes on the affluent and on corporations (which are repositories of investment capital). The numbers, and their effect on investment capital, are staggering. In his budget, Obama purposes increasing taxes on affluent individuals by $43 billion a year and on corporations by another $28 billion. That's over $70 billion a year to begin with and over $1.4 trillion over a ten-year period. But that's just to warm up. The Democrats also propose to fund their health care bills through higher taxes on affluent individuals and corporations. The Senate bill imposes $24 billion a year in such taxes when fully up and going and $188 billion over 10 years. The House bill is even higher, $50 billion a year when operational and $480 billion over 10 years. Obama's new proposal falls somewhere between them and would apply the Medicare tax to investment income for the first time. So, between Obama's budget and the health care plan, that's a shrinkage in the nation's investment capital pool of up to $1.9 trillion over the next decade. But that's only the beginning of the effects. Between Obama's increased income tax rates, the income tax surcharge in the House health care plan, and state income taxes, the highest marginal income tax rate in most states will approach or exceed 50 percent. That will hugely discourage savings and investment by the affluent. This tax-the-rich approach is justified as a matter of social justice. The government needs money, goes Democratic thinking, and it is fairer to get it from the rich than the middle class or the poor. Democrats also tend to believe that large disparities in income and large accumulations of wealth are evils to be ameliorated in their own right. The rich already pay a higher percentage of federal income taxes than they make in income. And the true social justice question shouldn't be whether income or wealth disparities are increasing, but whether the lot of the poor is improving. Concentrating on the latter question leads to entirely different policy choices than concentrating on disparities. The politics of income redistribution are mixed. Most people believe that the rich aren't paying their fair share and most people would like for government to do more for them. However, although not following the specifics, the American people also seem instinctively to understand that one of the questions is whether private investors or the government will more productively use $1.9 trillion over the next 10 years. We may not entirely like rich people. But they can usually be counted on to make wiser investment decisions than politicians. Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. JWR contributor Robert Robb is a columnist for The Arizona Republic. Comment by clicking here. Robert Robb Archives © 2010, The Arizona Republic

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