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Would Raising Taxes on Rich Kill Their Spending? WSJ

Just when things were returning to normal for the rich, along come the tax increases.President Obama and a majority of Democrats in Congress are pushing to let the Bush administration tax cuts expire for people earning more than $200,0000. It is claimed that allowing tax rates to reset (meaning to rise) for income, capital gains and dividends would raise $55 billion to $60 billion in new tax revenue.Republicans and an increasing number of moderate Democrats say that raising those rates will hurt spending and thus choke off any economy recovery. After all, the top 5% of earners (those earning $210,000 or more) account for a third of all consumer spending.How much would it hurt?
By Robert Frank, July 23, 2010 The Wealth Report/WSJ

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