“It is a paradoxical truth that tax rates are too high today and tax revenues are too low, and the soundest way to raise the revenues in the long run is to cut the tax rates.” – President John F. Kennedy, Economic Club of New York, December 1962.

“Let’s tell the truth. Mr. Reagan will raise taxes, and so will I. He won’t tell you. I just did.” — Former Vice President Walter Mondale’s July 19, 1984 Democratic National Convention acceptance speech

Mondale won his home state of Minnesota. He lost 49 states.

The titular heads of the Democratic Party (e.g., JFK) didn’t always side with increasing taxes.

And yet today raising taxes is always the solution looking for a problem. There real question that Almost DailyBrett must ask: Does it take any brains to hike a tax?

How come every remedy proposed by Democratic Party office holder or candidate for whatever ails the nation, states, cities and communities inevitably revolves around raising taxes, taking even more money out of people’s pockets, and making governments bigger than ever?

There doesn’t seem to be any consideration given to reducing expenditures, save slashing national defense and defunding local law enforcement.

Where are the ideas on how to stimulate growth and with it, generate tax revenues under existing rates?

How about creating new taxpayers with the best anti-poverty program known to humankind: A career-path private sector position with full benefits, and maybe even with publicly traded companies stock options and the Employee Stock Purchase Program (ESPP)?

The brain-dead calculus is raising tax rates by x percent, regardless of punitive intent, the result will be x-more revenues (static scoring). Simple, way too simple.

What the tax raisers seem to miss is taxation targets (e.g., raising the corporate rate) are increasingly nimble and quick. They will not elect to ‘receive’ in a javelin throwing contest. They will respond. The tax-ers need to consider dynamic scoring, namely the responses by the tax-ees (e.g., move to a no income tax state).

Your author sees this redistributive process as taxation cat and mouse. The feline never catches all the playing mice. The revenue targets are mysteriously unfulfilled, growth is discouraged by an expanding public sector, and we have fewer — not more taxpayers.

“Don’t Tax You, Don’t Tax Me, Tax That Fellow Behind The Tree”

According to the Penn Wharton Budget Model (PWBM) of the University of Pennsylvania, the Joe Biden plan would increase taxes by $3.37 trillion (some say $4 trillion) and would spend $5.37 trillion. The national debt stands at $26.70 trillion. So much for debt reduction.

The major provisions of the Biden tax raising program are increasing the corporate rate from 21 percent to 28 percent (e.g., trigger more money being parked overseas in wholly owned subsidiaries), hiking individual rates across the board with the highest being 39.6 percent, and lifting the already taxed capital gains to the same amount.

As previously reported by Almost DailyBrett, California with a national record for states $54 billion deficit is proposing raising its already highest in the nation state income taxes from 13.3 percent to 16.8 percent retroactive to January 1.

The state Legislature is also considering a 0.4 percent heat seeking wealth tax, which would be still applicable for up to 10 years after the target leaves the Golden State. Is that even legal? Sounds like full employment for dynamic scoring accountants and tax attorneys.

As the press secretary for former California Governor George Deukmejian, we were greeted by a $1.5 billion deficit upon taking office on January 3, 1983. The proposed solution was exactly the same then as it always is now: Raise taxes.

Almost DailyBrett is proud to report the Iron Duke did not increase taxes. The governor vetoed $1 billion in increased spending out of the California budget, supporting policies to stimulate growth and the creation of new taxpayers and when it was over — established a $1 billion prudent reserve for emergencies. Our budget was balanced all eight years of George Deukmejian’s tenure as governor thank you very much.

Believe it or not, there are other ways besides merely increasing a tax.

It takes zero brains to raise a tax.

https://www.cnn.com/ALLPOLITICS/1996/conventions/chicago/facts/famous.speeches/mondale.84.shtml

https://www.nationalreview.com/corner/biden-proposing-largest-tax-hike-in-history/

https://www.wharton.upenn.edu/story/a-breakdown-of-the-biden-policy-platform-5-key-takeaways/

https://budgetmodel.wharton.upenn.edu/issues/2020/9/14/biden-2020-analysis

https://almostdailybrett.wordpress.com/2020/08/23/californias-heat-seeker-taxes/