Dear Speaker Boehner, I’d like to purchase a new refrigerator. Would you please help me understand your logic on this issue?
First, I need a job, a second job. There are those who make more than $250,000 per year and perhaps one of those would hire me so that I could buy that appliance. If taxes increase on the middle class next year, my $2,000 share will help balance the federal budget, but will it help me buy that appliance and will it help encourage someone to hire me? No, of course it will not.
I speculate that there are others in my same situation. Are you saying that if the individual who might have to pay 35 percent on income over $250,000 instead of 19 percent would not make enough money to interest them in hiring me and others and therefore they will not launch some new venture? Or are you saying that if they can save the difference between 35 percent and 19 percent (here, let’s say 16 percent on $100,000) they can hire someone to make that refrigerator in the US and not in China? 65 percent on $100,000 is plenty enough to stimulate me! Why not them?
Seems to me that the problem is not stimulating people earning more than $250,000 to hire and invest. Sure they would have a bit less available if they paid more taxes. But the problem is that I can’t purchase the new appliance in my current situation. It’s not a supply side problem that we face.
There are plenty of refrigerators.