OBAMA-IN-WONDERLAND ECONOMICS
President Obama keeps demanding that the rich pay more because ‘it is only fair.' In his State of Union address, he said millionaires should pay a minimum of 30 percent of their income in taxes. The 30 percent number seems to have come from divine inspiration rather than an exercise in logic.
When Mr. Obama was asked about this during his first presidential campaign, he acknowledged that a capital-gains tax increase might lose revenue, but he wanted it anyway because of ‘fairness.'
So, according to the president, it is ‘fair' that everyone has to pay higher taxes or have fewer government services in order to make sure that high-income earners pay an increased rate of tax for risking their capital and creating jobs. This is perhaps the best description of ‘Alice in Wonderland' economics.
