ObamaNomics is built on the assumption that politicians are better stewards of economic resources than the millions of individuals and business enterprises who created those resources. The Democrats’ plan is to dramatically increase taxation to fund programs through which government can exert greater control over our lives.
But these data show that the private sector’s ability and willingness to generate wealth for government to seize through taxation is rapidly diminishing. These data show that Obama’s own actions are are literally killing the goose that lays the golden eggs he needs to fund his agenda.
The drop in individual income tax revenue in fiscal 2009 was the steepest since 1939. As the chart shows revenue continues to plummet in fiscal 2010.
Virtually all individual income tax is paid by top half of income earners, those with the resources to invest in business enterprises that create jobs. Half the taxpayers earning over $200,000 are small business owners, who directly invest their own after-tax profits in business expansion.
Thus, a drop in individual income tax revenue signals declining small business profits and declining resources available to invest in businesses and create jobs. Not only is current tax revenue down, but without current investment, future tax revenue will decline even more.
Yet Obama and the Congress have continuously hectored the small businesses that could power the nation out of recession. He bashes them for seeking the profits that they could reinvest in expansion and job creation. He continuously threatens them with tax increases, new health care mandates and a crippling energy shortage created by government through a new “cap and trade” program.
DP: Use link to see the other charts showing similar declines for corporate and total revenue declines:
http://libertyworks.com/obamanomics-an-endless-downward-spiral/
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