What do liberals think the positive impact raising taxes on the wealthy will have on the economy?

We obviously can't make up for the revenue lost during the entire Bush presidency but it is a start in the right direction. Also, the negative impact that conservatives predict seems to be contradicted by the article you cited.

it depends on what the rate of taxation is, and it also depends on cutting spending where actual money can be saved. Currently we spend 800 billion dollars a year on our military 1/3 of that amount is borrowed money. We've also spent many multiples of borrowed billions on supporting these several wars without instituting a 'war tax'. The Bush administration also cut taxes to the point that required more borrowing for other expenses that should have been paid for 'out of pocket'. All of that is now over and done, so the question is what to do now. We need to cut our military by 1/3, we need to institute a pay off the debt tax and we need to begin an infrastructure program that will generate jobs in the private sector. We may also have to go to our creditors and get a reduction in both debt and interest. More people working would dramatically increase the tax increment at all levels of government. While doing that makes some people upset only 'government' can accumulate enough cash to fund the big projects that actually do jump start slow economies. No private investor is going to put up the cash to bring solar power to the American southwest, at least not in any crash program sort of way. If you recall within 90 days of the beginning of WW2 we had factories up and running and a labor short economy. A major movement toward 21st century energy technology would require hundreds if not thousands of private contractors to do the actual work, and the salaries paid would create demand in a dozen different directions from that single source. Certainly the 'rich' will benefit from a increase in economic activity, so it's not as if it's all downside for the investing class. Actually a few percent of higher taxes would actually mean better investment opportunity and hence more potential 'profit'. Or, we could simply 'cut spending' and taxes and watch the economy sink to what ever level of equilibrium that would produce. I dunno..NOT doing something isn't the American way...doing bold things that have never been done before always seems to work better.

That article is from nearly a year ago. They didn't raise taxes on anybody. How's the economy doing? How's the deficit doing?

"...or about 5% of the deficit"

5% is not nothing. Republicans constantly whine about government spending that is substantially less than $70 billion a year. Talking about it as a percentage of the total debt is a bit deceiving. The US government has always carried some debt. It's not going to all get paid off no matter who gets in office.

"... it must be accompanies with drastic spending cuts, which liberals like Nancy Pelosi refuse to accept."

Let's cut the biggest expense of them all: MILITARY SPENDING.

The original Bush era tax cuts were paid for with borrowed money and created an on-going deficit The extending of those tax cuts simply continued an increased deficit. Look at the chart below to see the effect on the continuation of those unpaid for cuts. The reality is that the US economy will be in such debt that it won't matter to the wealthy what their tax rate, if the economy is collapsing.

Though I am not a Liberal myself, I see what the Liberals want to try to accomplish. That being, reducing the deficit. The problem with their solution is that it will only work for a short while, wont reduce the deficit a significant amount, and will reduce the growth of the economy. Our economy is based off of growth, face it, it HAS to grow, that is just the way it was designed. Unfortunately, for us it cannot do this endlessly. But the problem with the Liberal perspective is that, I am assuming, that they think raising taxes, and closing loopholes will fix our deficit, and the economy. That just simply is not going to fix the problem. If we raise taxes, we deprive producers and workers of incentive. If we punish those who want to send their production overseas, we deter businesses from coming here in the first place. So the only solution to the deficit is reducing unproductive spending, to bring companies here we need to lower taxes, and have a more simplified tax code. To not scare them away, they have to be able to come and go as they please.

Simply put the efforts towards bringing down the deficit needs to be shared. Liberals don't think that raising taxes will fix the deficit. None have said that except the wealthy supporters that want to argue the point that way. It would be enormously unfair to have all efforts to come from cuts to the middle and poor class.

Here's a reality check: the deficit is around $1.5 trillion. That is how much money has to be removed from the American economy, via some combination of tax increases and spending cuts, in order to balance the budget. There is absolutely no nice way to do it.

The rich take home 90% of the income but only pay 70% of the taxes. Bush gave them tax breaks and Obama renewed them and it did not help, they just sat on the money and did not reinvest it. It is going to take a combination of higher taxes and cutting spending.

The US has some of the lowest corporation income taxes in the world.

Edit: Due to loopholes and tax deduction no corporation pays the 39.3% or any where near it. I do not feel entitled to anyone's earnings (that is a rude and personal attack) but everyone needs to carry their fair share and the rich due to the current income tax deductions and loopholes do not pay their share.

It's worked before. We had a 91% Top marginal tax during the most prosperous time in America.

I agree with NP2012 on this one. We must reduce the national debt. Tax breaks and massive federal spending have wrecked the country.