"This year," the AP reports, "households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes, payroll taxes and other taxes...." Households with incomes of $50,000 to $75,000 average 15 percent. Yet if the president and Buffett have their way, we soon shall all pay higher taxes, because millionaires and billionaires could have their wealth expropriated by the government. Though, that would not be enough to slake the federal government's thirst for our income. As The Wall Street Journal observes, "Mr. Obama could tax every billionaire in America at a 100 percent rate and it still wouldn't make a dent in the federal government deficit."
During the Johnson administration, Lyndon B. Johnson was at an airport and about to get into the wrong helicopter. An army staff sergeant ran up and redirected him: "Mr. President, that is your helicopter over there." To which the president replied, "Son they are all my helicopters." Obama suffers the same delusion. He believes all the money the citizenry earns is his money.
His government is now gorging itself on 25 percent of the gross domestic product. That is a peacetime record. Historically, in peacetime, the figure was more like 20 percent of GDP and lower. The way to budgetary solvency is not to raise taxes and take even more money out of the productive sector of the economy. It is to cut spending back to the historic level of 20 percent, freeing the private sector to grow the economy. Obama is throwing money at green projects like Solyndra, now under congressional investigation, and other farfetched schemes. It appears he cannot spend his "tax expenditures" more wisely than private investors, who create jobs that last even beyond the next fiscal budget.
It is time his opposition remind him of a historic rule for budgetary formulation: "Twenty percent, yes. Twenty-five percent, no."
In Honor of His 103rd Birthday, Here Are The 20 Best Quotes From The Late, Great Milton Friedman | John Hawkins