Believe it or not, there was a time when the Democratic Party correctly believed that lowering taxes, as opposed to raising them, is what stimulates economic growth. John F. Kennedy, one of the most popular and well-liked Democratic presidents in modern history, once said, “Lower rates of taxation will stimulate activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.” Similarly, in 1963, Kennedy said to Congress, “The most important single thing we can do to stimulate investment in today’s economy is to raise consumption by major reduction of individual income taxes.”
Today, you would be hard-pressed to find a single congressional Democrat that supports tax cuts as a means of increasing the flow of revenue into the federal government. Rather, they believe in legalized theft by way of excessive taxation, all for the purpose, they tell us, of lowering the deficits and the national debt. This is one of the biggest lies in modern day politics, as tax revenue is never used by our elected representatives to pay off anything. Instead, the money that they force out of the pockets of hard working Americans is immediately spent on trivial projects and frivolous programs.
It’s important to note that while excessive taxation hinders economic growth, some taxes are necessary to allow the federal government to properly carry out its constitutionally required duties. An example of one of these duties is the funding of national security, as outlined in the Preamble of the United States Constitution – “…provide for the common defense.” However, when the federal government collects taxes for redistributive purposes, and for the purpose of funding big government programs, the constitution is ignored and a form of tyranny is introduced on the people.
In the state of New York, some wealthy, elitist liberals are actually encouraging the government to raise their taxes. Democrats like George Soros, Steven Rockefeller and Abigail Disney recently wrote a letter to lawmakers and Governor Andrew Cuomo arguing that more of their money should be used to support schools, roads, bridges and programs that help those living in poverty.
“Now is the time to invest in the long-term economic viability of New York,” the letter says. “We need to invest in pathways out of poverty and up the economic ladder for all of our fellow citizens, including strong public education from pre-K to college.” The letter also calls for an investment in “fragile bridges, tunnels, waterlines, public buildings and roads.”
The letter from these liberal elites endorses a plan that would cost the state’s top earners an estimated $2 billion. Most signers of the letter make over $650,000 per year, which puts them in the top one percent when it comes to income. The plan has the full support of the Fiscal Policy Institute, which, unsurprisingly, is a liberal economic think tank.
The Executive Director of the Fiscal Policy Institute, Ron Deutsch, called the willingness of these liberal elitists to contribute more “refreshing.” Given the fact that liberals are constantly having to convince people why taking more of their money is a good thing, it’s no wonder why having a group of wealthy residents actually volunteer to pay more would be a nice change of pace.
But a willingness to pay more in taxes doesn’t necessarily mean that the proposal will fly through the state legislature without any obstacles. Indeed, the Democratic majority in the Assembly already has a plan that would increase taxes on New York millionaires, and the Republican-led senate opposes the idea altogether.
The state budget is now being negotiated by lawmakers, who hope to have a deal by April 1.