A Paper Every American Should Read Including the Pinhead Obama

Just who is Austan Goolsbee? He is a top economist from the University of Chicago. He is also an Obama advisor. One would think someone like Obama, who knows about economics as well as say perhaps George W. Bush knows about theoretical physics, would pay attention to Professor Goolsbee.

You see infidels, Professor Goodsbee wrote an interesting paper in 1999 entitled: "WHAT HAPPENS WHEN YOU TAX THE RICH? EVIDENCE FROM EXECUTIVE COMPENSATION."

In his paper, which can be found here, the professor notes:

This paper examines the responsiveness of taxable income to changes in marginal tax rates using detailed compensation data on several thousand corporate executives from 1991 to 1995. The data confirm that the higher marginal rates of 1993 led to a significant decline in taxable income. Indeed, this small group of executives can account for as much as 20% of the aggregate change in wage and salary income for approximately the one million richest taxpayers; one person alone can account for more than 2%. The decline, however, is almost entirely a short-run shift in the timing of compensation rather than a permanent reduction in taxable income. The short-run elasticity of taxable income with respect to the net of tax share exceeds one but the elasticity after one year is at most 0.4 and probably closer to zero. Breaking out the tax responsiveness of different types of compensation shows that the large short-run responses come almost entirely from a large increase in the exercise of stock options by the highest income executives in anticipation of the rate increases. Executives without stock options, executives with relatively lower incomes, and more conventional forms of taxable compensation such as salary and bonus show little responsiveness to tax changes.

The article is technical but not a difficult read. But this article like many others have proven that raising marginal tax rates results in less taxable income. As you will recall from the Democratic debate, Charlie Gibson hammered Obama on the capricious rationale of raising tax rates if they produce less revenue. The dimwit's response was "fairness."

You see infidels, fairness in Obama's mind, is akin of punishing success. Or as the lefties like to say, "sticking it to da man." These pud whackers are so capricious and arrogant that in the name of "fairness and equality", folks have to be patriotic by paying higher taxes, even though it will result in less tax revenue to the US Treasury. I'm sure this makes sense to those dingbats who love to rip us and call us "wingnuts", but as George Carlin used to say, you can call shit shineola, but at the end of the day, it's still shit.

You see infidels, no matter what label or what tag you want to call Obama's plan, it is still shit my friends. Those that peddle it are simply shit salesmen. What he wants to promulgate on the American public has not and will not work. But simply because this dude is a slick hipster from Harvard, we should somehow trust him.

Liberals somehow think that Obama's shit don't stink. Wake up people. It's not chocolate mousse he's peddling out there.

UPDATE: I'm sure even our favorite blogger on the left, Mr. Whoopee, who proclaims that everyone who does not agree with him is a clueless idiot, might learn something by reading this as well. Picture of the anonymous professor seen below.

Posted by Cigar Mike at October 30, 2008 08:57 AM