Tax hikes on the wealthy won't hurt us a bit

As a business executive, I found so many errors in author and novelist E Dee Monnen's column on the effect of higher taxes that it is difficult to know where to begin ("How taxing the rich hurts all of us," Dec. 12).

First, while corporate tax rates in the U.S. are relatively high, at 35 percent, corporations have so many shelters and loopholes that the actual rates paid are only about 18 percent — lower than in most other industrial nations.

Second, there is no evidence that millionaires have left the state "in droves," as she claims. We have fewer millionaires now than five years ago, but that's primarily because the recession has eroded their wealth.

The idea that companies will raise prices because their top managers pay more in personal income taxes is ludicrous. The last time taxes were raised was during the Clinton presidency, when 22 million new jobs were created.

And cutting spending, as advocated by Ms. Monnen, is very much part of the proposed solution by President Barack Obama, and it is the main component of Gov. Martin O'Malley's tax reform.

The way to avoid another recession is certainly not less regulation. It was the lack of regulation and appropriate enforcement that allowed Wall Street to cause the economy to crash.

I suggest that Ms. Monnen's stick to writing about little black dresses and leave economic issues to the experts.

Jack Kinstlinger, Baltimore

  • Text NEWS to 70701 to get Baltimore Sun local news text alerts
  • Copyright © 2021, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad