Tuesday, November 20, 2012

How Liberal leaders flunk math. They Fail to grasp human response to heavy taxes!

Washington Times ^ | 11/20/2012 | Richard Rahn

Dennis Van Roekel, president of the largest teachers union, the National Education Association, failed fifth-grade math last week. The question he failed is: If X (government spending) is growing faster than A (government tax revenue) plus B (new revenue from higher tax rates on “the rich”), when will A plus B equal X? President Obama met with leaders of left-leaning organizations, including Mr. Van Roekel, to discuss the “fiscal cliff.”
After the meeting, Mr. Van Roekel appeared on Neil Cavuto’s Fox News show to discuss the budget deficit. Mr. Van Roekel told Mr. Cavuto that he had recommended taxing the top 2 percent more to deal with the problem. Mr. Cavuto then correctly explained that taxing the top 2 percent could not solve the problem because even with the increase, spending would still be growing far faster than revenues — primarily because of entitlement programs.
After some back and forth, Mr. Van Roekel could not identify one item in the budget that he was in favor of cutting and kept insisting the problem could be solved only by taxing the top 2 percent, even though Mr. Cavuto again correctly and clearly explained that even taxing the top 2 percent at a 100 percent rate would not produce enough revenue because entitlements are growing faster than the economy. Mr. Van Roekel appeared to be unable to grasp this rather simple concept.
At the end of last week, Hostess Brands Inc., the company that makes Twinkies and Wonder Bread, asked to be liquidated because the bakery workers and their union bosses could not understand this: If A (workers’ salaries and benefits) is growing faster than B (sales revenue), company H (Hostess) will run out of money and be forced into liquidation. So 18,500 workers are losing their jobs
(Excerpt) Read more at washingtontimes.com ...

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