Randall Hoven writes in American Thinker, Class Warriors Got What They Wished For that the Class Warriors have created a great contradiction; they wish both for a more progressive tax system and for less income disparity or fewer wealthy. Yet a highly progressive income tax system places a bigger burden on generating tax revenues on the very social segment they wish to minimize. The result of this policy and this recession is that the tax revenue from the wealthy has significantly dropped.
In my article also published in American Thinker, The Immorality of Class Warfare, I point out the moral hypocrisy of those who condemn the very segment we have deliberately structured our system to depend on. Hoven shows that this system is equally pragmatically flawed; not only is it morally repugnant but it is ineffective at supporting the huge growth in government services that the class warriors demand.
An excerpt from Hoven’s article:
Revenues did not fall because of a tax rate cut; there was no tax rate cut between 2007 and 2009. Revenues did not fall because of some give-away to the rich. In fact, the problem was just the opposite. Revenues fell because there were fewer rich and the rich made less money — just as class warriors wanted.
We had a progressive tax structure that relied on the rich getting richer. Then we got what we wished for: for the rich to become like us. So now we’re all broke. We had a bubble-based tax system, and the bubble burst.
Why do you think revenues fell by over 20% to the federal government and states like California during the Great Recession, when GDP fell only 4%? Because the federal government and states like California have extremely progressive tax structures. You get rid of the rich, and you get rid of government revenues (and job creation).