pic from feefreeezone.com
Obama’s tax increase will also act as a major disincentive for foreign entrepreneurs to invest in the US economy, build businesses and create jobs. As a 2010 survey of America’s Fortune 500 companies showed, over 40 percent “were founded by immigrants or their children.” There are 90 immigrant-founded Fortune 500 companies in the United States, employing more than 3.6 million people, generating $1.7 trillion of revenue. As tax rates rise, there will be every incentive for overseas businessmen to put their money elsewhere, rather than invest in big government America.
It is also an illusion to believe that high earners in America do not contribute enough money to the coffers of the federal government. As I noted in a previous piece, what Obama refers to as “the wealthiest Americans” already pay more than their “fair share” in taxes:
According to the Congressional Budget Office, the top 1 percent of US earners already pay 22.3 percent of all federal income taxes (based on 2009 figures), even though their share of total income earned is just 13.3 percent. The top 2-5 percent of American earners pay 17.3 percent of the total share of federal income taxes paid, even though their share of total income earned is 12.5 percent. The top 20 percent of Americans pay 67.9 percent of total federal income taxes, while their share of total income earned is 50.8 percent.
Under Barack Obama, the United States has steadily fallen down the index of the world’s freest economies, and is now ranked tenth in the world, below Australia, New Zealand, Switzerland and Canada. If he succeeds in raising the top rate tax in his second term, it will fall even further. Trampling economic freedom is hardly the best way to handle America’s huge debt, which stands at a staggering $16.3 trillion and rising. Instead of increasing revenues, tax hikes are likely to reduce them, as the British example has clearly shown.
Driving many of the country’s most successful people, as well as their money, out of the United States is sheer economic suicide. 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.
The Government may already have a plan in place to avoid this problem.