Higher taxes divert to the government needed capital that would otherwise primarily become investment dollars. These investment dollars finance creative, sometimes risky, but ultimately economically beneficial new ventures. These new ventures create tomorrow's jobs.And that's what we need, jobs. It's the only thing everyone seems to agree about. We're poised to suffer a 15 month debate over who is more in favor of jobs. And sadly, we're all going to get sucked into the false pretense that jobs are created by policy and politicians instead of by creativity and . . .wait for it . . . risk-taking. Also known as balls.
But in today's environment, where is the shortage of capital, of investment dollars? Interest rates are extraordinarily low. You can't even pace inflation with a savings account or a bond or a money market fund. There's no capital shortage.
There's an excess of capital, in the hands of all the folks who have done very well. And it's all very risk averse. In that environment, it's hard to make a plausible argument that an upward tweak in the top bracket is going to kill job creation. There's almost no job creation to kill. What little exists is related directly to enterprises that can increase profits by adding labor. Investment capital is piling up, looking desperately for somewhere appealing to go.
What we need is creativity and balls. Instead we're beset by rigid, simplistic, outdated ideology and fear.