"It profits me but little that a vigilant authority always protects the tranquillity of my pleasures and constantly averts all dangers from my path, without my care or concern, if this same authority is the absolute master of my liberty and my life."

--Alexis de Tocqueville, Democracy in America

Wednesday, January 2, 2013

Chart of the Day

From Zero Hedge.   Literally (as Joe Biden might say) all you need to know about the joke "fiscal cliff" deal:

Raising taxes on the "wealthy" (those families who take in more than $450,000 in adjusted gross income) simply isn't going to come close to closing the budget deficit the Democrats are running.   And that's assuming, of course, that the $62 billion per year calculated to come from the higher taxes in the fiscal cliff deal actually materialize.   Here's a tip -- they won't.   These taxes on our most productive citizens will slow their productivity.   For small businesses who file as S-corporations, they'll higher fewer people, build fewer new facilities, buy fewer new pieces of equipment, etc.   Meanwhile, these highly compensated individuals will also have high incentives to find ways to avoid taxes.   The federal government won't get $62 billion extra this year, or any year.

Meanwhile, put aside the pragmatic aspect of this mode of "soak the rich" taxation.   There's also the moral aspect.   The "rich" already pay their fair share and then some:

We are a nation of freeloaders.

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