If that extra money taxed gets used for something useful such as building High Speed Rail in California, or jump-starting alternative fuels technology, then it is a win win situation for the economy and for people.
If that extra tax money gets spend in useless wars such as the one in Iraq, that is plain economic destruction.
That's why picking the right president is so important, and makes the huge difference between economic prosperity, or economic destruction.
While I may say, that Bush's tax cut, and flood of money (with low interest rates), left the rich flush with money, who invested in short-sighted and useless economic destructive market. For every house that is in foreclosure, every house/street/building that is left half build, that is all economic loss to all.
While it is a good idea to let markets decide private investments in the long run, sometimes it is necessary for the government to step in, and invest in things that are not profitable in the short term, but have huge positive economic impact in the long run. And if pinching some money away from the private market is necessary, so be it.