Tax to Prosperity?
The country is in a deep debt hole. Our elected empty suits are continuing to dig at what would be an impressive rate if the digging led to something productive or useful. They know how to do what creates the problem, they don’t know how to fix the problem. Raiding the public piggy bank for whatever reason they see fit is how the elected empty suits have operated for most of the 20th Century and into this Century. They’re not representing the people who voted for them, they’re securing their future as elected empty suits.
One school of thought on solving the problem is to steal from the rich to give to the poor. Many of the elected empty suits cannot tolerate success. They believe that success is only possible by screwing someone else. They believe that you can’t be successful and prosper and then enjoy the benefits of your hard work, unless you took unfair advantage of someone else. They feel that they must punish this success.
They believe that after you earned a lot of money through hard work and you have saved a great deal of money, then that money is subject to further taxation. The successful have already paid taxes on the money they earned when they earned it. Now the money is sitting around waiting for further use. Individuals and corporations are currently sitting on significant amounts of cash because they’re afraid to invest it. They don’t know how the new health care requirements will impact by additional employees, they don’t know how investments will be taxed. It’s cheaper to sit on cash and let it earn almost nothing, than to invest it in any way and risk losing a significant amount of the income to higher taxes.
Elected empty suits see large sums of cash as opportunities to tax and continue to dig the hole deeper through additional spending. They only see their side of the equation. Tax that much money at a higher rate and we’ll get that much more money to spend. They can’t see the effect of the higher tax rate from the point of view of the person paying the higher tax rate.
Why invest cash by buying stocks or investing in companies, if the profits will be taxed at a higher rate. Why put the cash at risk through investment if I can’t keep the profits. It’s safer and cheaper to let the money sit in a bank and not earn much interest.
In order to increase tax revenue you must have a thriving economy and a lot of tax payers. More tax payers each paying a small amount of taxes will beat a few tax payers paying a large amount in taxes.
The successful in this country are not the problem. The elected empty suits who want them to be punished for their success are the problem. Wealthy people aren’t stupid. Increase their tax rates and they will work very hard to avoid the tax. As they analyze the situation on how to maximize their income, they evaluate how their exposure to taxes will affect their return on the dollar. When the tax becomes too high, there is no reason to invest. Why risk the money if I can’t keep the income. The tax lawyers and tax accountants will make more money helping them avoid paying the taxes (they’re the ones who write the laws that the elected empty suits vote on).
Tax increases intended to increase the tax revenue is always a disappointment. The rosy predictions on how much a tax increase will increase the revenue, always come up significantly short. People will go to great lengths to legally avoid paying taxes. They will also go to great lengths to avoid them through less than legal means. Higher taxes means higher pain, and always less revenue. Higher taxes does not stimulate the economy, it serves as an anchor, slowing growth and stifles incentive. Why should I work hard so the government can prosper from my hard work?
The road to prosperity never starts with a tax.
Higher taxes mean pain and disappointment.
When an elected empty suit sings the praises of more taxes, especially on the rich, they’re only screaming at the top of their lungs how they don’t understand human nature or how the Free Marker works.
The Free Market (which includes lower taxes and much less government) is the engine that creates a thriving economy. Higher taxes never has and never will.