Tax Increases and Revenue
Our government is attempting to raise our taxes because there’s a deficit. Before we discuss a possible tax increase let’s address the deficit. A deficit is when a body spends more money than it takes in. This doesn’t happen by accident. Money is never spent by accident when a legislative body causes the spending. They write a bill, they discuss it, and then they vote for it. After all that happens, an executive signs the bill. With all that effort, how can they possibly spend more than they have?
Apparently it’s easy because they do it every day. They never make sure they have the money in hand before they spend it, because they don’t care. To professional politicians being able to back up the checks they write is not important. They don’t have to show a profit, they don’t have to manage a budget and they don’t have to be effective. Much of the spending is used as a tool to fool the public into reelecting them. They do it because it works. They spend money that shouldn’t be spent, and they spend it in their districts; then they brag about it to the voters and the voters think they’ve been taken care of. We accept it as something positive and vote the bum back into office. The appropriate response to a politician who does that should be to make him repay the government out of his own pockets. In some environments that’s called misappropriation of funds.
When they spend our tax money on nonsense, there should be a process to make them pay it back, and then they should serve time for misappropriation of funds. In the business community they would be fired and charged with a felony.
If I’m the Chairman of the Board for a major pharmaceutical Company and I use corporate funds to wine, dine, and entertain the other board members, then discuss my qualifications to be reelected as the Chairman of the Board I would be held accountable for misusing company funds and resources. It’s irresponsible and most likely criminal. Our elected hooligans do it daily.
Now that we have a very large deficit, they sit around and analyze the problem to try to fix it. They recognize that the money going out exceeds the money coming in so they have to bring more money in. They never look at the bottom 48 percent of the population who are not paying any taxes, or the portion of that 48 percent who actually get a check to reward them for not earning enough to pay taxes, but they will blame the rich for not paying enough. Taxing them more will not bring in more revenue, but not paying them for not earning enough to pay taxes will help stop the bleeding and reduce the deficit.
They owe more than they earn so they want to find someone to give them more money. Many elected politicians want to impress the weak minded of the voter pool so they blame the rich for being rich and demonize them as the evil rich pushing the poor down into more poverty and less success.. The only problem with the rich is they’re also the engine that makes the economy move forward. They want the voters to think that the rich shouldn’t live so well because they’re bad people and they MUST pay for their success and their riches.
Trying to fill the hole with more revenue from taxing the voters more severely will not necessarily bring in more revenue. Higher taxes cause lower returns on investments. Higher taxes cause individuals to evaluate how much money they want to make. Higher taxes cause people to make decisions on how to accept income. Differed payments to outer years to avoid current high taxes? Barters for value that is not taxable? Or choosing not to earn money at all to avoid taxes. Many of the wealthy can make those sorts of decisions. The poor can’t, all they can do it work, collect a paycheck and pay the taxes. The wealthy people, the rich who drive our economy can sit back and wait or to hold on to their wealth.
The income they don’t earn because it’s not worth it to earn at these tax rates is not in the economy and is not being spent and it is not creating jobs. This limits the number of taxpayers who can pay taxes that will increase revenue. Higher tax rates usually reduce revenues. Lower tax rates increases revenues. Encourage success and you encourage investment; stop demonizing the rich and you’ll get more business, more investment and more new jobs.
The first most effective way to reduce spending is to throw the irresponsible elected officials out of office who want to impress the voter by showing them how much money they can spend in their home districts. Then the second most effective way to reduce a deficit is to stop spending frivolously. Only spend what must be spent for the common good. It’s our money and they were elected to look out for our best interests. We must hold them to that. We are the voter and the tax payer, they owe us their best efforts to represent us and our wallets responsibly.
Stop spending NOW, Lower taxes NOW. Represent the Taxpayer and the voter NOW, stop representing the party leaders and special interests and start living an honorable and trustworthy life of an honest public servant.
Vote the Bums Out,