The top combined federal, state, and local marginal tax rate in NY will hit 57% if the House Democrats health care plan goes through. Even though the effective rate paid by such earners will be somewhat lower, when you add in property, state, and other taxes, the tax burden on high earners is going to increase substantially. Of course, we haven't even dealt with reducing the budget deficit yet.
Well, so what? Why not soak the rich? Besides the fact that it's bad economic policy--in the middle of a recession, we're raising taxes on the segment of the population that produces the most jobs--it's also immoral. Sam Gregg explains
In his Wealth of Nations, Adam Smith said that taxes were necessary to enable governments to perform three essential functions. One was national defense. Another was public security and the administration of justice. The third was public infrastructure needs, though Smith envisaged that governments could contract much of this to private companies.
Today’s reality, however, is that taxes are raised for purposes that go far beyond these limits.... Read the full article