Questions about the Budget Debate

Recent addresses by President Obama in which he shares his thoughts on Paul Ryan's budget proposal raise a few questions that I wish someone would ask him. The President insists that we must all share in the sacrifice necessary to put our fiscal house in order, and, he insists, the top income earners are not paying their "fair share".

Well, exactly what is the fair share for the wealthiest Americans? The top 1% of earners already pay 37% of the income taxes. Should they be expected to supply 50% of the tax revenue? 70%? 100%? Whatever number Mr. Obama has in mind does he also have in mind a rationale for that rate? if so, what is it?

If all Americans must share in the sacrifice does this mean that President Obama is going to raise taxes on those making less than $250,000 after having promised in the campaign that he wouldn't? Contrary to popular opinion, it's the middle class which, by virtue of their numbers, has all the money (see the following chart). It must be a huge temptation to plunder them:

Does everyone sharing the burden mean that the 47% of Americans who pay no income tax will be required to pay some?

If the President just wants to tax the wealthiest 1% how does he expect to raise enough revenue to make a dent in the deficit? If raising taxes on them will actually produce less revenue, which the following graph indicates, then why is the President insisting on it? Moreover, if every dollar of every millionaire and billionaire were confiscated by the government it would produce about 940 billion dollars. The Obama budget is about 4 trillion dollars. A 100% tax rate on the income of the wealthiest Americans' income would still only finance less than 25% of his spending.

If small businesses making more than $250,000 have their taxes raised what effect will this have on their ability to hire new employees? The more businesses have to pay the government the less they have left for payroll and benefits. Why does this administration think that raising business costs is a good idea?

Finally, if the president insists that the wealthy pay more in taxes why did he itemize his own returns this year so that instead of paying at the 35% rate his income puts him in, he paid at the 27% rate. If you want others to share in the sacrifice should you not include yourself among those participating in the sharing? To demand others pay more while avoiding doing so yourself is not only hypocritical but also very poor leadership.

I have no particular sympathy for the rich, but if taxing them serves no helpful purpose and actually depresses employment opportunities then the only reason for doing it is to punish them, in a Marxist kind of way, and that strikes me as being as indefensible as insisting others pay more tax while one takes all the deductions one is allowed on one's own return.