A tax rate of 123.9 percent is impossible; a 100 percent seizure of the assets of the rich should be a non-starter. That would destroy the companies involved, increase unemployment and snuff out economic growth. Obama's call to hike taxes on the rich is not based on fiscal prudence, but merely designed to punish success. The result ultimately will be lost jobs and a heavier tax burden for the middle class.
Republican presidential nominee Mitt Romney has noted that Obama's economic policies have already generated the following results: new business startups are at a 30-year low; middle-class incomes have declined; prices have increased for gasoline, electricity, food, and health care; unemployment exceeded 8 percent for 43 straight months; 47 million are on food stamps, and economic growth is slowing.
Romney said that's a result of Obama's “trickle-down government approach which has government thinking it can do a better job than free people pursuing their dreams. And it's not working.”
Romney is right. Obama's tax-hike plan will only exacerbate the economic problems he has created — with little impact on national debt.
Failure to reduce the deficit and the resulting national debt will stifle future economic growth, reduce opportunity and harm Americans at all income levels. Holtz-Eakin's study shows Obama's fiscal recklessness makes avoiding that fate extremely difficult. Those who stress tax increases over budget cuts are simply not facing reality.