Steve Israel NY-2: Position on Tax Rates All About Class Warfare, Not Deficit Reduction

SIW recently read the November 15, 2010 issue of Newsday where Rep. Steve Israel's position on the extension of the Bush era tax cuts was set forth.

This writer almost choked when Congressman Steve Israel stated, in sum and substance, that we shouldn't extend the tax cuts on the "wealthy" because the increased revenue that would be gained by letting the tax cuts expire would allow us to "roll back a good portion of the deficit."

Deficit? Steve, did you say deficit? After going on the biggest spending spree in the history of Congress with Nancy Pelosi, you are suddenly concerned about the deficit? Does anyone (from liberal to conservative) in the 2nd NY Congressional District believe that Steve Israel has had an ephiphany and is now lasered in on  deficit reduction? He is insulting your intelligence.

And even if you believe that this "chutzpah on steroids" position is sincerely felt by Mr. Israel do you honestly believe that if allowing the tax cuts to expire resulted in increased revenue to the government (debatable in itself) that the additional revenue would be directed by Steve Israel, Nancy Pelosi, and Harry Reid to deficit reduction? That is the first thing they are going to do with billions, right?

In short, raising the tax rates to punish the so called rich has nothing to do with reducing the deficit and all to do about the left wing's class warfare strategy to punish the "wealthy." This is not an opinion, this is fact, when you realize that reducing tax rates, not raising them, actually increases revenue to the Federal Government. As stated in an article by Thomas Sowell in Real Clear Politics titled "Deficit Reduction":

"In 1920, when the top tax rate was 73 percent, for people making over $100,000 a year, the federal government collected just over $700 million in income taxes-- and 30 percent of that was paid by people making over $100,000. After a series of tax cuts brought the top rate down to 24 percent, the federal government collected more than a billion dollars in income tax revenue-- and people making over $100,000 a year now paid 65 percent of the taxes. [Read Full Article Here]

        

How could that be? The answer is simple: People behave differently when tax rates are high as compared to when they are low. With low tax rates, they take their money out of tax shelters and put it to work in the economy, benefiting themselves, the economy and government, which collects more money in taxes because incomes rise."

Steve Israel stating that any increased revenue to be gained by expiration of tax cuts will be used to reduce the deficit is simply a phony "fantasyland" position and he knows it.  But he thinks YOU will buy it.

Steve Israel's position to increase taxes is really about two things he does best: TAXING AND SPENDING, and nothing else. Deficit reduction is not in his vernacular, except in this case, when he can hoodwink you in to supporting TAXING AND SPENDING.

New York 2nd Congressional District: When are you, and your intellect, going to stop allowing yourself to be taken for granted and abused?