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April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

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.

Letter from JWR publisher


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.

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