If the economy is truly the issue that will decide this election, John McCain only needs to ask one rhetorical question to the American people during Wednesday night’s debate: Are you currently working for, or have you ever worked for, a poor person?
The implication is so obvious but, in today’s liberal-dominated media, a conservative’s first duty is to state the obvious. Jobs are produced by people with money who are trying to make more money. This is why those engaging in class warfare by “sticking it” to the rich are ultimately “sticking it” to themselves. Ask them, “Would you rather ‘stick it to the rich’ or have a job?”
The same is true for “sticking it” to corporations. In the first debate, McCain said that corporate taxes in Ireland are about 11 percent, but he didn’t drive the point home that higher corporate taxes here (about 35%) drive jobs overseas. Every dollar in tax savings is a dollar of profit to a company. Why would any corporation stay in America if it can increase its profits dramatically by paying lower taxes overseas? Any corporation would be unfair to itself and its shareholders if it didn’t pick up and leave.
Everyone knows that if you want less of something, tax it more (everyone but Obama apparently). Higher personal and corporate taxes will result in fewer jobs here and less wealth for everyone—you, your employer, and your government.
How so the government? Not only do higher tax rates destroy jobs, they usually bring in less revenue to the government. That’s because higher tax rates reduce economic growth and send jobs and investments overseas. So while the government may get 39% instead of 35% on marginal income, a slower economy means that the amount of taxable income is lower resulting in less total revenue to the government: 39% of $100 is less than 35% of $120.
While the mainstream media maligns the “Bush tax cuts,” those cuts were a win for everyone and the country. In the first three years the of the rate cuts (2003-2006), economic growth rates more than doubled and helped create five million new jobs. Moreover, tax revenues as a percent of GDP rose above the historical average. Deficits grew because of increased spending, not decreased revenue.
Frank Turek is coauthor of I Don't Have Enough Faith to be an Atheist, and the author of Stealing from God: Why atheists need God to make their case. See more of his work at CrossExamined.org.