Home > posts > The New Stimulus: $150 Billion Tax Increase
November 24th, 2009 3:13 pm
The New Stimulus: $150 Billion Tax Increase
Posted by Print

Ah, the world of Democratic fiscal policy.  If you pass three massive stimulus bills that not only fail to stimulate job growth, but partly contribute to 10.2% unemployment, why not go back to the well and push for tax hikes?

According to the Hill, Democrats are seeking a $150 billion tax on the sale and purchase of financial instruments like stocks and derivatives.  The thinking is that since Wall Street is finally recovering and unemployment is still lingering above 10 percent that Wall Street needs to involuntarily fund a “Job Creation Reserve” for the unemployed.  If that’s all it takes to lift a $14 trillion economy out of recession, why didn’t our exalted class of politicos think of this before?

Now that Wall Street is starting to recover, what better way to welcome it back to prosperity than with a massive new tax hike?  This failed line of thinking reminds me of the old Ronald Reagan quote, “If it moves, tax it.  If it keeps moving, regulate it.  And if it stops moving, subsidize it.”

For real life illustrations of this quote see: Wall Street bailouts/new taxes, taxing “rich people,” bailing out Detroit, subsidizing Amtrak, subsidizing the postal service, subsidizing agriculture, and the regulation of pretty much every productive economic venture in the U.S.

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