But business owners large and small, representing companies from Bartell Drugs to Amazon.com, successfully fought back against the job-killing measure in Washington State. Disavowing the Gateses, Microsoft honcho Steve Ballmer also joined the opposition. The software company's senior executives expressed grave concern "about the impact I-1098 will have on the state's ability to attract top tech talent in the future." Liberal newspaper editorial boards including the Seattle Times and Tacoma News Tribune added their objections, citing I-1098's reckless targeting of wealth-creation in the middle of a recession and the inevitable extension and increase of income taxes to the middle class. And economists at the independent, nonpartisan Beacon Hill Institute at Suffolk University found that I-1098's tax burdens would lengthen and deepen the current economic downturn by destroying private sector jobs, reducing residents' disposable income and prolonging the state's high unemployment rate.
Amber Gunn of the free-market Evergreen Freedom Foundation in Olympia, Wash., gave the bottom line on I-1098's unreality-based advocates: "Initiative proponents like to operate in a Keynesian world where higher tax rates and their effects on human behavior and competitiveness among states don't matter. But those effects are present in the real world and must be accounted for."
I-1098's promoters tried to disguise their wealth-suppression vehicle as tax "relief" by tossing in a few stray targeted cuts. But they were called out by a judge and slapped with a court order to make the income tax burden explicit in the ballot title.
If only the taxmen in Washington, D.C., were required to do the same. Obama's budget proposal is a soak-the-rich scheme adorned with a few business tax breaks that would -- for starters -- impose nearly $1 trillion in higher taxes on couples making more than $250,000 and individuals making more than $200,000. Some "relief."
On Thursday afternoon, still smarting from the nationwide "shellacking" the Democrats received on Election Day, White House spokesman Robert Gibbs signaled that Obama would be willing to "entertain" temporary -- not permanent -- tax relief for the nation's highest earners. But a time-limited reprieve in prolonged economic hard times is expedient politics and bad policy. Tax relief should be all or none. The new House majority should force the Democrats to choose.
Republicans must stop allowing the White House to demonize America's entrepreneurs and producers. By continuing to refer to them as beneficiaries of the "Bush tax cuts" instead of as the besieged victims of Obama tax increases, the GOP cedes the moral high ground. It's time to make the White House own its noxious war on wealth.
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