Since the posting of Stop Talking Down Business, Mr. President, part 1, Pres. Obama has announced his tepid opposition to the punitive AIG bonus tax bill working its way through Congress. The bill would tax bonuses paid by bailout recipients at up to 90%.

Thank you, Mr. President, you made the right call here. Furthermore, Obama’s general statement that the tax code should not be used to punish came right out of the free market handbook.

Mr. President, please keep the faith when considering your punitive new taxes on high earners. Government audits show that higher tax brackets will not meaningfully help close the budget deficit. Indeed, Obama’s near doubling of the capital gains tax will probably reduce government revenues.

If a tax adds little to nothing to the government coffers, its only purposes can be social engineering and class warfare. Let’s hope Obama has turned the corner on this very ugly aspect of Democrat politics.