Let the rich invest and create more jobs
Unimpressed by the sophistry of the counter-cultural movement, rocker Alvin Lee mocked the movement in his song, "I'd Love to Change the World."
Its lyrics included the line, "Tax the rich, feed the poor/ till there are no rich no more."
Sadly, the song describes today's punitive economic policy.
The nation has the most progressive tax system in the developed world, as the top 10 percent — who earn 33.5 percent of the income in the nation — paying 45.1 percent of the taxes, according to the Washington Post.
All the money that goes to Washington is money not being re-invested elsewhere, which could be used to create jobs..
T.J. Rodgers, chief executive officer of Cypress Semiconductor, decided to invest $1.2 million in a restaurant in his hometown of Oshkosh, Wis.
"That restaurant now permanently employs 65 people at an investment of $18,000 per job, a figure consistent with U.S. small businesses," Rodgers wrote in the Wall Street Journal.
His semiconductor company invested $797 million over a 20-year period and created 4,033 jobs or one job for every $198,000 invested.
Contrast that to the estimated $500,000 to $4 million per job that the stimulus cost, according to the Congressional Budget Office.
In other words, in the hands of the government, his $1.2 million that produced 65 jobs in Oshkosh may have produced one job or maybe one-quarter of a job in the hands of government.
Taxing the rich does not make anyone less poor.
In fact, the interference by government skews the
marketplace so much that it actually leads to more poverty.
"Does anybody really believe that moving investment decisions from Silicon Valley to Washington by raising taxes on venture capitalists and their investors would make Silicon Valley more productive?" Rodgers wrote.
"Consider the Solyndra debacle: It was obvious to most of us here that the solar-energy company had zero chance of survival. That's why the company had to be government-funded near the end; no real investors were willing to step up."
It is a sad day when a songwriter exhibited more wisdom 40 years ago than today's Ivy League-educated economists who dominate Washington.