Taxes and Income
I don’t like taxes, but I do like income. Income drives taxes. Many in this country earn a living and their income is reported to the tax payer and to the IRS. There is no opportunity to manipulate the numbers. You earned an amount, it goes toward your annual income and you pay taxes on it.
Some in this country don’t earn every dollar in a traditional way. Many small businesses are in a cash business and the reporting of income becomes an art instead of a science. The IRS relies on the honesty and integrity of the individual to report income completely and accurately. The possibility that some income earners might shield some income from the government to minimize their exposure to ridiculous tax rates is always present. The higher the tax rates the more incentive exists to hide income from the government. It’s illegal to do, and it’s unethical. Tax rates are at a painfully high level from the local state and federal levels. We have approached a tipping point where the tax rates are so high that it doesn’t pay to earn money.
Why work hard to earn a living when the government will take a significant portion of it from you? We’re at a point where it makes sense to minimize your income to minimize your tax burden. Almost half of the tax payers don’t pay taxes, and some even get a check from the taxes the rest of us pay. The government is rewarding them for their lack of success. The government is punishing the rest of us for our success. I guess they never heard of behavior modification. Reward the behavior you want, and correct the behavior you don’t want. The government (i.e. politicians)has it backwards.
The economy is driven by income. The more income people have the more money drives through the economy. Income becomes disposable income that’s spent on necessities and other items that could be identified as luxuries. As this income is distributed through the market place merchants earn income and buy supplies and inventory and further stimulate the economy. Have you noticed none of the money we’ve talked about so far (except the tax dollars confiscated from us at alarming rates) is private money and not government money. Success and Income are the method to stimulate the economy, but the government (i.e. politicians) continues to punish success.
The more painful the tax rates the less incentive high income earners have of earning money. Why work so hard, when I don’t get to keep as much of it. The painful tax rates also provides a great incentive for those who are in a position to hide income to take the risk and not report all of their income. As each individual does their own risk analysis quite a few decide that the risk is not worth it. Why invest and assume risk on my money when if the risk is successful and I earn a lot of money on my investment, but I don’t get to keep enough of the income from it. The painfully high tax rates factor in to the possible gains from an investment and frequently cause the investor not to risk his investment. Too little gain for too much risk. Let the money stay as cash earning very little income, but also at no risk.
The politicians desire to make the rich pay, has the effect of causing the economy to stagnate. The rich have the money to invest and spend and to create jobs. As it is the rich pay far more than they should to support the wasteful spending of our legislatures. Those who don’t pay taxes and those who get a reward for having too low of an income don’t create jobs. Their disposable income, if there is any doesn’t rise to the level of stimulus for the economy. Why reward them for their lack of success. We want them to have the incentive to want to succeed and to earn more and to have a positive impact on the economy.
The answer to a robust economy is the rich. They invest, they create jobs, and they spend money. Our politicians have to stop treating the golden goose as the enemy.
Reward success, embrace success, and stop punishing success.
Vote the Bums Out,