It has, of course, been tried in the past. When one points out the failure of this program, liberals will simply say they need more time and money to achieve their lofty utopian goals.
The utter failure of socialism has been incontrovertibly proven in every country in which it has been implemented. One only need take a cursory glance at the economic results achieved by Russia, East Germany, North Korea, Vietnam, China and Cuba to mention a few. This list does not include a look at the socialistic policies that have led to the downfall of Greece, Ireland, Portugal and Spain in the eurozone. These survive due to the good graces of the less fiscally socialistic nations of the European Union.
There is ample evidence to prove that when a government needs money, simply increasing taxes to produce more revenue can be counter-productive. During a recession, for example, revenue naturally falls, and some governments try to compensate by raising taxes. A wrong move at this point could very well hamper an economic recovery.
In his article from September 15, 2011 in the Wall Street Journal, “Tax Cuts vs. ‘Stimulus’: The Evidence Is In,” 1 Harvard professor Alberto Alesina presents an excellent analysis of 21 countries that clearly indicates how reduced spending coupled with tax cuts is the best path for economic growth. This is diametrically opposed to the liberal program of stimulus spending and increased taxes. Businesses simply are not willing to invest in growth knowing that stimulus spending will only increase taxes in the near future if not immediately.
Alesina’s research included 21 countries over a period of 40 years and concluded that spending cuts and tax breaks actually resulted in a higher GDP and consequently, generated greater tax revenue. The liberal fallacy of spending oneself out of debt by living beyond ones means is a sure way to bankruptcy be it an individual or state.
Below is a short video put together by Bill Whittle that clearly demonstrates the result of excessive taxes levied upon the large corporations and the rich and how it will accomplish little to nothing.
In the current U.S. economic circumstances, a well-disciplined government budget coupled with tax cuts could stimulate more jobs, lower unemployment and raise our GDP. The indiscriminate spending and tax increases proposed by liberals, runs contrary to the basic principle of human behavior that says people will not work if their incentive is taken away. Taxing the rich, eating the rich, doing away with the rich are simply egalitarian mantras; they solve nothing save for making every one poor.