The Other "Fairness Doctrine"

Glenn Beck, in an interview with David Freddoso, author of "The Case Against Barack Obama" asked Freddosso about Obama's tax plans, which are constantly changing by the way. Here is a copy of the transcript of the interview.

GLENN: David, can we start with the economy with Barack Obama and the difference of what Barack Obama sees in the economy. How is he different than the politics of old as he calls them, the politics of failed policy?

FREDDOSO: Well, I would say and thanks for having me again, Glenn.

GLENN: Sure.

FREDDOSO: I would say that he, on economics he has rose from a typical populist anti free trade sort of position in a higher tax position that pretty much ignores the incentives involved in government tax policy. As you know, when you raise marginal tax rates, you are basically making it more difficult for small businesses. You are creating extra expenses for them and that means that wages tend to go up more slowly and perhaps even people get laid off if you have a major shift upward in the upper marginal rates. Because the people who hire other people are the ones making the large income. That is part of Obama's tax policy is to raise the top marginal rates.

GLENN: Okay, now wait a minute. Hang on just a second.

FREDDOSO: Yes.

GLENN: A lot of people don't understand, and I know you just explained. A lot of people don't understand that this is bad. Have you and I know this is past when your book came out but can you document here at all on how Barack Obama has changed his position?

FREDDOSO: Yes.

GLENN: on that top marginal rate.

FREDDOSO: Well, you know, he even he went on Stephanopoulos just a couple of weekends ago and when asked about if we go into a recession, would you raise taxes and his answer was, well, maybe not if we go into a recession. So he's already implying here that he understands raising taxes hurts people but he is willing to do it anyway as long as we're not in a recession already.

GLENN: And he's doing it for a reason of what he calls basic fairness.

FREDDOSO: Yes.

GLENN: Do you remember when he was go ahead.

FREDDOSO: Of course, you are referring to when he was asked by Charlie Gibson, I believe, about the capital gains tax, and he wants to raise the capital gains tax. He said he wants it to go up to maybe 28%. Right now it's 15%. When you raise the capital gains tax, historically revenues go down because people engage in fewer transactions when the marginal when the capital gains rate is high. So in fact, every time that rate has been cut, the government revenues have increased and so Charlie Gibson asked him, well, if raising this tax doesn't actually raise more money for the government, why are you going to do it. And Obama's answer was fairness. So now we have a government I mean, and this is you could say this is a great indicator of socialism. You have the government trying to make the economy more fair by hurting some people and not helping the others. It's a kind of laughable situation you could say.

END TRANSCRIPT


So essentially, Obama knows that raising taxes is bad for the economy. It doesn't bring more revenues, it doesn't create jobs. Raising taxes lowers revenues if anything. It also is a surefire way to lose jobs. If you raise taxes on small business, small business owners will lay people off, making more people dependent on the government, yet the government will have less money to take care of the additional people who need government assistance. So Obama wants to hurt the rich, (of which he is a member) without helping the poor all in the name of 'fairness'. I suppose it's fair if he screws everybody. (except the Marxists, I'm sure his plans include tax breaks for the Marxists) I thought Obama's supporters were the 'educated' class in America. I'm not sure what kind of education his supporters have, but it must not have included research.