That’s the title of Daniel Henninger’s WSJ column today. Excellent reading.
Henninger nails down the difference between two visions. Under the Obama/statist vision, taxes must constantly be increased, especially on business and “the rich.” It’s the “We work, they decide” approach, “they” meaning politicians.
On the other hand, many people prefer a tax system “that keeps more of the nation’s decisions about using its wealth in the hands — and minds — of millions of intelligent citizens, from any economic class. They work, they decide.”
Put it this way. The lower tax rates, the more that individuals get to choose how to spend or invest money. The higher tax rates, the more politicians get to choose how to spend or invest money. Well, take out “invest” from the last sentence. Politicians never really invest money, despite the chatter about how their spending on education, health care, etc is really an “investment.” High taxes cut down on true investment and transfer spending decisions from individuals (who tend to carefully weigh costs and benefits) to politicians who are driven by short-run electoral considerations and special interest pressures.
