Veronique de Rugy offers this on the extension of the Bush-era tax cuts, which are stalled because Democrats want to hike taxes on the top earners:
Setting aside the fact that the top earners are the ones who tend to drive economic growth (entrepreneurs, venture capitalists, etc.), the revenue implications of hiking their taxes are really miniscule. And that’s with a static analysis, before you consider that hiking their taxes will reduce their incentive to work.
Of course, revenue doesn’t matter to these people either. Our president is on record favoring higher taxes even if they reduce revenue. It’s not about the revenue; it’s about the spite. And in that vein, let me bump my fable.