ISIS and Ebola: the real consequences of raising taxes on the rich

Obama has raised taxes. Everybody knows it. Obama was elected, he waived his magic Liberalism Wand, sign an executive order or two, and now everyone is paying way too much in taxes. Not just everyone: YOU.  You are paying too much in taxes, and it’s Obama’s fault.

Consider the following graph of the highest and lowest marginal income tax rates over the last 100+ years. Because this graph has liberal bias, it seems to show that tax rates increase for the rich and not for the poor. But still, rich people matter.  A LOT. Therefore, this graph basically proves that taxes have been raised on everyone… or at least, everyone who matters.

Historical marginal tax rates on the rich and the poor.

In case you find the above graph a bit overwhelming or confusing (who wouldn’t?) we have simplified it for you in the following way:

HELP OBAMA RAISED MY TAXES!!!!

BUT WAIT, THERE’S MORE!  Not only has income tax on the super-rich increased, but capital gains tax (the other type of tax that most rich people pay) has also increased!!  All you need to do is look at the illustrated graph below to see how sad this is:

All the taxes on the rich people have gone up and that makes them really sad

What have we seen as the negative result of this increase?  ISIS and Ebola.  Now, I know that some people, for example the head adviser and chief of staff for Ted Cruz, have tried to blame Ebola on Obamacare:

Advisor to Ted Cruz blames ebola on Obamacare

But that’s just ignorant. Clearly, both ISIS and Ebola are part of the LARGER PATTERN in our economy, namely: the fact that the rich are paying a little bit more lately.

Did we have ISIS before taxes on the top 1% were raised? NO!

Did we have Ebola before taxes on the top 1% were raised? NO!

I rest my case. If anybody tries to tell you otherwise, the only appropriate response is to yell LIBERAL BIAS!!!!

 

Tea Partiers more likely to tax evade, according to stupid liberal science.

Tea Party

Profiling is great. Profiling is awesome. Except when it happens to Tea Partiers. Then, it’s tyrannical and irrational and morally wrong.

So here’s the story.  Apparently, the IRS has admitted to focusing on Tea Party groups when looking for tax evaders. This has a lot of conservatives really mad, because they say it is “unfairly profiling” Tea Party groups.

It is important to point out that Tea Partiers are no stranger to profiling.  Tea Party politician Jan Brewer loves profiling. The Republican Party of Wisconsin loves profiling. Generally speaking, all well-known conservative spokes-people love profiling.

But profiling has to be logical. It has to make sense. Like this:  “I hear people talk about Muslim terrorists a lot. Therefore, anybody who is Muslim is probably a terrorist.”

If you are a good conservative, you recognize that this is the kind of profiling that just makes sense.

Tea PartyTea Partiers, however, should never be profiled.

I mean, sure: they tend to say that taxes are too high.

Many of them also say that they are morally opposed to taxation.

Some of them even say that all taxation is unconstitutional and tantamount to theft by the government.

But that doesn’t mean anything! That’s all just anecdotal! And heresay! And other words! If you say “Tea Partiers therefore might be more likely to avoid paying taxes” …. well, that just goes too dang far.

But there is a problem.

Unfortunately, as usual, scientific studies create a problem for this argument.

Some studies show that having a positive view of taxes as a “civic duty” tends to reduce the propensity for tax evasion, while not believing that taxes are a “civic duty” is positively related to tax evasion (Orvisha & Hudson, 2003).

Other studies show that trust in government, trust in the legal system, and trust in the courts are all be positively related to tax compliance, while having a lack of trust in the government is related to tax evasion (Torgler, 2007).

 

…..but as we all know, things like “science” and “data” traditionally have a liberal bias.  And therefore can be ignored.

Conclusion?

Please make sure  you spend this week yelling and screaming about the IRS unfairly profiling Tea Partiers for possible tax evasion.

Then, next week, you can go back to yelling and screaming about how all taxes are theft, and all Muslims should be deported.

If anyone accuses you of hypocrisy, then … well, they must just have a liberal bias!!!!

 

REFERENCES

Orvisha, M. and J. Hudson. (2003). Tax evasion, civic duty and the law abiding citizen. European Journal of Political Economy, 19:1. pp 83-102.

Torgler, B. (2007). Tax Compliance and Tax Morale: A Theoretical and Empirical Analysis. Edward Elgar Publishing.

 

For a good summary, read: Tax Morale and Fiscal Policy  (PDF)

Related Articles on ProfilingDomestic Terrorism, Right-Wing Extremism, and Liberal Bias

The word “loophole” has a liberal bias

Loopholes

Loopholes

People in the liberal media are using the term “loophole” incorrectly. It’s time for us to set the record straight.

You SHOULD NOT use the term “loophole” for these things:

The 1993 CEO Compensation Rule:  When Congress tried to cap the deductibility of executive compensation to no more than $1 million per year, somewhere along the way a special provision was entered in so that the limitation was only applied to performance-based pay. So, CEO’s started getting paid bonuses in the form of stock options instead of cash, and the “limitation” became completely useless.

This loophole feature of the tax code costs the U.S. Treasury saves corporations $8 billion a year.  Honeywell made $5 billion from 2009-2012 and paid only $50 million in federal income taxes – a tax subsidy of $1.7 billion – which they were able to do in part because of this loophole.

Everyone knows that CEO’s should not pay any taxes.  They are delicate and dainty, and if you get them mad then they might hire even fewer people. You wouldn’t want that, would you?

Therefore, this is a “tax feature” not a “tax loophole”.

The Off-Shore Tax Laws:  When companies build stuff in other countries, they do not get taxed by the United States. This was originally set up to encourage American companies to go and build stuff abroad. However, in the last few decades they have also been registering patents and trademarks in low-tax countries, even when the discoveries that those patents represent were really made in the United States, so that the income the company receives for those patents and trademarks does not get taxed.

This loophole feature of the tax code costs the U.S. Treasury saves corporations $90 billion a year. Citigroup had $42.6 billion in profits offshore in 2012 on which it paid no U.S. taxes.  ExxonMobil had $43 billion in profits offshore in 2012 on which it paid no U.S. taxes.  General Electric had $108 billion in profits offshore in 2012 on which it paid no U.S. taxes. Honeywell had $11.6 billion in profits offshore in 2012 on which it paid no U.S. taxes.  Just to take four examples.

This also should not be called a “loophole”, because everyone knows that corporations are over-taxed already. Just look at the four examples given above. They obviously need these tax breaks because they are struggling oh so badly.

You SHOULD use the term “loophole” for these things:

 

Employee benefits:  Employer-paid health insurance are a HUGE loophole.  Also pension plans, plus life insurance, vision and even group legal plans.

These are loopholes because the costs are tax-free unless you pay for them yourself. Plus, they benefit middle class and poor people who obviously don’t need any help with money, those lazy useless creeps.

Home Ownership Exemption: When selling a primary residence (effective 1997) capital gains are totally exempt up to $250,000 ($500,000 if married)  Congress keeps increasing this exemption to include a majority of middle-class voters.  The cap on that exemption targets it to the middle class only — which makes it a loophole for middle-class people.

Who do these people think they are, asking for tax breaks? I mean, it’s not like middle-class people do anything useful or productive the way Exxon Mobile does.

 

When you use the term “loophole” to apply to those poor, put-upon rich people and corporations, it’s really just showing your liberal bias!!!

 

sourcesInstitute for Policy Studies, Liberty Issues