I should do the “I told you so!” dance right now

7

December 4, 2012 by Julia

One of my first pieces here at Mininerd was a mockery of France’s Socialist president, Francois Hollande, who wants to raise taxes on the rich (apparently the Socialists are  good little Obamaites).

A few days ago, the Daily Caller published a piece about Britain’s 2010 tax increase on the wealthy, which states this completely foreseeable fact:

“Tax paid by the top earners fell from 13.4 billion pounds before the top tax rate came in to 6.5 billion pounds in 2010/11,” The Daily Mail reported on Tuesday.

Yes, that’s right, the UK lost almost 7 billion pounds (around $11.2 billion) by increasing taxes.  How does that happen?  Well, think about it.  People with money will move their money elsewhere, earn money differently, or move themselves elsewhere to avoid paying more.  It’s human nature, it’s perfectly legal, and anyone who criticizes this behavior had better be prepared to prove that s/he does not take a single deduction on his or her taxes or else have a very hard time explaining why it’s okay for him or her but not for UK millionaires.

Even UK writers understand the implications of this basic, undeniable fact about the human response to tax increases:

Daily Telegraph columnist Nile Gardiner, based in Washington, D.C., wrote Wednesday that the British tax debate parallels the current “fiscal cliff” stalemate in the United States, and is “a wake-up call to Barack Obama’s high tax America.”

“Driving many of the country’s most successful people, as well as their money, out of the United States is sheer economic suicide,” Gardiner wrote.

“The American dream rests upon the foundations of economic and individual liberty, a dream that has attracted millions of entrepreneurs to the land of the free for centuries. President Obama’s big government agenda is not only generating more debt, but it is also strangling wealth creation. This is a path to decline, not renewal.”

“As tax rates rise,” the British observer warned, “there will be every incentive for overseas businessmen to put their money elsewhere, rather than invest in big government America.”

Of course, some of us could have seen–and did see–this coming from a mile away.  I wrote about it in August myself, and Thomas Sowell covered it in December of 2010.  Raising taxes will make the wealthy leave or move their money, and total income will drop.  Facts are facts, numbers are numbers, and two plus two will always and forever equal four, regardless of what Big Brother wants us to believe.

And pardon me, I think I will do the “I told you so!” dance after all.  Because I TOLD YOU SO.

(and you’d better believe that I will link to this post when Obama’s tax hike bonanza has tanked the economy, because clearly, we can’t expect him to learn from the past when there is class warfare to be waged and Americans to divide)

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7 thoughts on “I should do the “I told you so!” dance right now

  1. Ish says:

    In the per-historic era of 2008, during Democratic presidential primary debate between Hillary Clinton and Barack Obama, the moderator Charlie Gibson and Obama had an enlightening terrifying exchange about taxation and revenue. So not only did Julia “tell you so,” but Barrack Obama himself told us so.

    Asked point blank if he would raise the capital gains tax, despite the historically proven outcome of a DROP in revenue as a result, Obama said he would “rais[e] the capital gains tax for purposes of fairness.” Not revenue, just ‘fairness,’ apparently because his copy of the Constitution has a Fuzzy Unicorns and Happy Thoughts Clause that mine is missing.

    Math is hard.

  2. Tap Dancing Steak Eater says:

    I have two friends who both promised me they’d buy me a steak dinner if my predictions about the economy tanking under Obama came true. I told them I would hold them to it and while I was eating my filet mignon, they would be enjoying some lovely crow, served cold, provided by a friend of mine who’s quite good at hunting. Perhaps I’ll have my wife start choreographing an “I told you so” dance to go along with the meal. Dinner and a show, right?

  3. Stuart the Viking says:

    Obama has never been about making the economy work, he is about making the economy “FAIR” (or at least what HE considers fair). There seems to be enough Americans who are delusional enough to think that is possible elect him.

    I’m not scared right now, since the delusion seems to be stable at the moment. When that giant delusion bubble pops (when… not if) and all those people realize just how wrong they are, I expect riots. People don’t like when their comfortable delusions are broken.

    s

    • Julia says:

      Nah, that has NEVER HAPPENED before, so I don’t know why you would expect it to happen now. I mean, I’ve heard rumors of this mythical place called “Greece,” but I feel like it sunk into oblivion years ago, so it’s probably not real 😉

  4. […] be doing a lot of “I told you so!” dancing in the near future.  Probably even before Obama’s terrible tax plan ruins the economy, we are going to confirm that yes, Syria has WMDs and interestingly, they arrived in 2003 or so. […]

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