…Those who earned the money should keep it?
I happened across this article, “America Needs Taxes,” and I find it a bunch of hooey.
Like this statement:
In fact, Eisenhower, a Republican, presided over an era where corporate taxes accounted for a quarter of all federal tax receipts, and the richest Americans still enjoyed their wealth while paying a 90% top tax rate. Americans were never more prosperous as a whole than during that era.
It took some digging, and it’s like comparing Granny Smith apples to McIntosh apples, but I found that Federal tax revenues declined under Eisenhower. However, under JFK’s posthumous and Reagan’s tax cuts, Federal revenues increased. I can’t dig up W’s tax rate numbers, But I do know that the revenue numbers were mixed. But considering what the country was going through in our post 9/11 world, it could have been much worse.
Keynesian economics suck. Debt is not acceptable as a “percentage of our GDP.” Especially when you’re talking about $7,000,000,000,000. Yes, that is the number for $7 trillion. Why? Because if the GDP falls to a disaster, we default on our loans. Let’s put it this way: No debt, no risk. As Dave Ramsey says, “100% of the home foreclosures had a mortgage on them.”
Getting back to taxes. If you let people, especially business owners, keep their own money, they will likely invest it some way. The smart ones at least. If business owners can believe things like, the government won’t take over their business, or taxes aren’t going up, then they will invest their money back into the business. This will grow the business, and he will have to hire people. When you hire an unemployed person, they go from being a “tax consumer” (i.e., on food stamps, unemployment, etc., consuming governmental services) to being a “tax producer” (someone who pays taxes). This lowers the costs of the government and increases their tax revenue. The person has a job, the business owner gets more money because his capacity (and business) have expanded, and the government gets more money. Win-Win-Win.
Now, let’s look at it the other way. The government raises taxes, the business owner cuts back on his business because he can’t afford the tax burden, so he lays people off. They go from tax producers to tax consumers. The business makes less money, so the owner pays less in taxes. Sure, tax revenues go up, for a while. Until the downturn hits, then the death spiral starts, more taxes leads to less people working, and so on.
We see this in all the Liberal cities. Detroit, New York, Chicago and so on.
So, we come back to my original point, whatever happened to the concept of letting the people keep the money that they earned?
To think that America is a static pot of money where someone has to lose for someone else to win is ludicrous. America is an ever growing pie, and everyone has pretty much the same chance to get ahead that anybody else does. It all depends on how much you are willing to work. Liberals have the opposite view. They believe that everyone needs to cross the finish line at the same time, no matter how far you have to run. Some will have to run a marathon, while others may only have to walk a foot.
Think about that.