In his book The Anti-American Obsession, philosopher Jean-François Revel exposed French fantasies and clichés on the United States and towards its President. It is customary in France to poke fun at US Presidents, treating them like morons who have gotten elected head of state in some miraculous fashion: Nixon was thus a dangerous reactionary, Carter simply a “peanut salesman”, Reagan “an excited cowboy”, George W. Bush “a real idiot”. Two Presidents have largely escaped French insults: Clinton and Obama. Both are Democrats, the first being elected after “the disaster of the Reagan era”, the second after the “terrible years of Bush Jr”.
Yesterday, the US President Obama announced a new debt plan built on taxes on rich. He called for $1.5 trillion in new taxes on upper income taxpayers. His plan would end Bush-era tax cuts for top earners and would limit their deductions. This proposal is following the public debate on the issue of high-income taxes, launched by the investor Warren Buffet few weeks ago. In the following paper, Toni Mascaró reminds us why this approach to taxes and deficits is wrong.