Tax the Rich Folly

Maybe someday
Saved by zero
I'll be more together
--The Fixx

Rick Santelli (vid here) continues to be the only Bubblevision pundit type to lay it out there re our current fiscal situation. As he demonstrates, heavily taxing millionaires hardly dents our debt--perhaps funding one months worth of debt.

He also notes that at the rate our debt is increasing, such taxes mean less and less.

This administration's tax the rich policy could not be more misguided. Any real capital that remains in our system likely resides with the wealthy. We can not afford to confiscate it. Confiscating this capital and consuming it for near term needs eliminates the primary driver of productivity improvement and standard of living increase for the long term.

Reducing spending, paying down debt and saving to build capital is the path to freedom. Our current approach is the path to despotism.

Tax-the-rich rhetoric does, of course, underwrite political theater for an administration campaigning on a class warfare platform.