“Bill” Board No. 1 – You can’t tax people who do not have a job

The president wants to raise taxes on the so-called “wealthy”in order to feed his penchant for “investing.” He calls it investing, but the truth is investing is really nothing more than spending that “hopes” for an uncertain return. Failure is characterized by the investor being left only with “change.”

One can argue whether what we have seen so far from this administration is investing or spending or if his strategy to tax the wealthy will work (and I do, see the blog post Presidential Bull vs. Chicago Bulls), what is irrefutable is that if jobs are not being created, in the long run you have no business and no wealthy employers to tax. You must tax everyone at a uniformly higher rate to generate equal or greater tax receipts.


So what does the jobs picture really look like? Contrary to the administration’s assertion that everything in the job market is rosy – the president claims to have created 5 million new private sector jobs – the actual job statistics tell another story and it is recorded in the blog post The Truth of the Matter Is.

The bottom line is this: the Wall Street Journal reported in the May 5-6, 2012, weekend edition, “Nearly three years into the [Obama] recovery, the U.S. still employs five million fewer workers than before the recession.” Compare and contrast this to the Reagan recovery in the 1980s, three years after that recession ended. Millions more people wanted to work than before the recession started. Despite a large influx of new job seekers, the unemployment rate fell from 10.8 percent at the end of 1982 to 7.2 percent by the presidential election in 1984. Compare Regan’s second year (September 1983) results to President Obama’s third year (April 2012) results in which 115,000 new jobs were created: Reagan’s economy created 1.1 million jobs in that one month alone, 10 times as much.

One last fact: 23 million people are either unemployed or have dropped out of the job market because they cannot find work. If these people were to stand in an unemployment line, 3 feet apart, the line would stretch half way around the world. It is my hope and prayer today that you are not one of those unfortunate citizens, but if the current administration remains in office I believe the line – over time – in actual numbers will grow larger and there will be fewer “wealthy” people willing or able to subsidize them.