Wilkow: Why Simply Taxing the Rich Does Not Solve the Problem

California Governor Jerry Brown's proposed plan to raise income taxes on the wealthy and raise the statewide sales tax to fund K-12 schools and help balance the state budget was passed by voters in a close vote Tuesday. According to the Associated Press, Proposition 30 increases the statewide sales tax by a quarter cent for four years, in addition to higher taxes for income-earners of over $250,000 a year. Democrats pledged to enact $6 billion in cuts to schools and colleges had the proposition failed.

Peter Schiff appeared on TheBlaze TV with Andrew Wilkow Friday to discus the negative effects of measures like Proposition 30.

"They can raise taxes on the rich," Wilkow said of Proposition 30. "They can't guarantee that the rich are going to stay in California."

The discussion regarding raising taxes on upper income-earners as the solution for our economic woes is pertinent both in California and the national debate. With the looming fiscal cliff, the president responded Friday to Speaker of the House John Boehner's opening of talks for a deal before the fiscal calamity, by pledging that he will not agree to any bargain that does not increase taxes for the rich.

Watch a clip from Friday's show below: