May 13, 2013
David G. Savage:
Church-state, literally? Supreme Court weighing public school graduation in a church
May 10, 2013
Rabbi Berel Wein: Be all that you should be
May 8, 2013
Peter Ford: Why China is welcoming both Israel's Netanyahu and Palestinians' Abbas
Obama administration quietly backs out of appeal over new contraceptive mandate
At Kerry-Putin meeting, US-Russia relations thaw --- a tad
The Kosher Gourmet by Leela Cyd Ross :
Almost too pretty to eat, this colorful salad with Sicilian inspiration will tickle the taste buds and delight your visual sensibility
May 6, 2013
May 3, 2013
Kids, kittens the Same?
With employee perks at struggling Internet pioneer Yahoo! it's hard to tell
Artificial kidney offers hope to patients tethered to a dialysis machine
April 29, 2013
Poland's new Jewish museum celebrates life, doesn't revisit Holocaust
Terrorism in America: Is US missing a chance to learn from failed plots?
Boston Bomber's 'Svengali' Revealed
Tiny satellites + cellphones = cheaper 'eyes in the sky' for NASA
April 26, 2013
Clifford D. May:
Defense in the Age of Jihadist Terrorism
Sharon Palmer, R.D.:
How to feel your best -- with plenty of energy, a healthy weight and optimal mental and physical function -- without driving yourself batty
April 24, 2013
Admit it: No one has any idea what's going on
April 22, 2013
US man departing country arrested on terror charges
An unorthodox but growing treatment in a 9-year-old's battle against cancer
April 19, 2013
Caroline B. Glick:
Why Obama's visit to Israel had no impact on public opinion or government policy
Gold collapse: The start of something big?
Livable super-Earths? Two candidates among Kepler's latest finds
April 17, 2013
Too much of a good thing? 'Palestinians' realize downside of foreign aid boom
BAD NEWS: EVERYONE IS RIGHT!
April 15, 2013
Egyptian Christians respond with harsh words to attack -- rocks, Molotov cocktails, and gunfire -- against main cathedral
Marcy Darnovsky and Karuna Jaggar:
High Court to decide if you should own your DNA
US bracing for more Russian blowback after taking action against 18 more human rights violators
April 12, 2013
New cybersecurity bill: Privacy threat or crucial band-aid?
Jewz in the Newz by Nate Bloom:
The Kosher Gourmet by Susan Russo:
Jackie Robinson's Friend, Hank Greenberg; CNN's Jake Tapper; Texas County in the News is named for 19thC. Jewish soldier and Congressman
FRUITY QUINOA STUFFED PEPPERS: A flavorful, colorful and edible vessel of delicately fluffy, mildly nutty filling combined with chewy apricots, tangy cherries, and crunchy pistachios
April 10, 2013
North Korean missiles: Could US shoot them down?
Warning: Don't waste your capital being fooled by profit prophets
Donald Hensrud, M.D.:
Mayo Clinic Medical Edge: Take vitamin supplements with caution --- even approved, they may actually do damage
74 DNA discoveries move cure closer for three cancers
April 8, 2013
Jonathan Tobin: What Part of No Preconditions Do American Jews Not Get?
Is Putin finally trading his own party for a new power base?
Jewish World Review
Oct. 29, 2008
/ 30 Tishrei 5769
Chief Justice John Marshall said it all in one sentence: "The power to tax is the power to destroy."
It is not the money that is taxed away that is destroyed. What is destroyed is the wealth that does not get produced in the first place, because high taxes make its production not worthwhile.
Those who are receptive to Senator Barack Obama's plan to increase taxes on "the rich" seem not to understand that the issue is the nation's loss of wealth. Today, wealth can leave the country when heavy taxes threaten it instantly, in an age of electronic financial transfers and create jobs and economic growth overseas, instead of at home.
The two months between the time of a presidential election and the time when the new president takes office is an eternity in terms of how much money can be transferred out of the country electronically before any new high-tax laws can be enacted.
Like so much that is said glibly by Barack Obama, raising taxes on "the rich" has serious and potentially disastrous implications for the whole country that have been ignored amid the political euphoria.
Moreover, like so much that is proposed under the magic mantra of "change," it is something that has been tried before in many countries and failed before in many countries.
|FREE SUBSCRIPTION TO INFLUENTIAL NEWSLETTER|
Every weekday NewsAndOpinion.com publishes what many in the media and Washington consider "must-reading". HUNDREDS of columnists and cartoonists regularly appear. Sign up for the daily update. It's free. Just click here.
Much wealth from Third World countries flows out to richer countries like Switzerland or the United States, where it is safer from confiscation. Jack up the capital gains tax rate in the United States and more Americans can be expected to send their capital elsewhere.
That means sending jobs elsewhere, so that even people with no capital to invest lose employment opportunities.
Economists have trouble determining how many people are affected by a tax increase because those affected extend far beyond those who write the checks to pay the government.
Taxes on businesses can get passed along to consumers, in whole or in part, even though it is only the business that writes the check to the government.
Payroll taxes or government-mandated employee benefits may be paid for directly by the employer, but these costs reduce the value of an employee to the employer. If these costs add up to $10,000, for example, employers bidding for labor may bid $10,000 less in salary than they would have otherwise.
As in other cases, who writes the checks does not tell you who really pays the costs, since the worker is now $10,000 worse off. The idea that you can single out one segment of society to be taxed or mandated, for the benefit of the rest of society, is reminiscent of a San Francisco automobile dealer's sign: "We cheat the other guy and pass the savings on to you."
The economy is not a zero-sum game where someone gains what others lose. The whole economy can lose when ill-considered policies gain political popularity and stifle economic growth.
People who do not own a single share of corporate stock can still lose big time when capital gains taxes are raised not only because jobs can follow capital out of the country, but also because millions of working people's pension plans own corporate stock, and those people's retirement incomes will depend on the value of those stocks, which is reduced by capital gains taxes.
One of the biggest taxes is one that is not even called a tax inflation. When the government spends money that it creates, it is transferring part of the value of your money to themselves. It is quiet taxation but often heavy taxation, falling on everyone, no matter how low their incomes might be.
By the end of the 20th century, a $100 bill would not buy as much as a $20 bill would buy in the middle of that century. For people who saved cash, inflation amounted to an 80 percent tax. For others, it was an 80 percent tax minus whatever cumulative interest or dividends they received on the money they invested.
Given the staggering cost of the government's financial bailouts, there is no way that Barack Obama's grandiose spending plans can be carried out without inflation.
When politicians start talking about taxing "the rich," remember the old saying: "Send not to know for whom the bell tolls. It tolls for thee."
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.
Comment on JWR contributor Thomas Sowell's column by clicking here.
Thomas Sowell Archives
© 2006, Creators Syndicate
Richard Z. Chesnoff
Frank J. Gaffney
Victor Davis Hanson
A. Barton Hinkle
Judge A. Napolitano
Cokie & Steve Roberts
Debra J. Saunders
J. D. Crowe
Ask Doctor K