Recently I have heard a number of politicians and economists, even a nominee for the Federal Reserve suggest that it is time to end The Bush Era Tax Cuts, at least for the highest income earners. It sounds good on the face of things. And it would seem like a good source of funds, to take the tax dollars from the most wealthy. At least you know where there is some money to take, right? But is that all such economists and politicians have to offer America, some form of communism/socialism?
There is a problem with that logic. For one, using that rationale is the same as saying nobody should be able to make more money than anyone else. Such taxation is punitive.
Such taxation is also a tyranny, perhaps a tyranny of the masses since there are fewer people making such amounts of money and therein lies within the masses the greatest demand. Such method is merely taking from one to give to another who may not be perhaps as happy with their station in life. We all know that most of that money, or at least a large portion of it, will go to pay for social programs and government programs that the government did not offer just 75 years ago and that have grown large social groups that could not survive, indeed flourish without such communist/socialist programs. But the real travesty of such public policy is that it creates a class of people enchained to a government handout, unable to ever be independent citizens by learning how to provide for themselves. AND such policy enslaves a public that must oil and produce such chain by offering up its wages to the state for said redistribution in perpetuity. Only big government prospers given such circumstances, ladies and gentlemen.
Some government programs are useful to us all to be sure, but many more are simply entitlements that are abused, something we all know but that many in leadership will not publicly admit for whatever reason. Perhaps some do not want to admit such a fact for fear of not getting elected or re-elected. That is denial, the most pernicious form of denial to a country such as ours that relies on the democratic process to choose its leadership and a free market economy to perpetuate its existence.
So, as a matter of social fairness, it really is not fair to those who have the most money in the first place to tax them and only them to obtain the tax revenue. Furthermore, it is not as if the most wealthy use more government services. Frequently the most wealthy use fewer services because they can afford to choose, so their tax burden is less. Why then should the most wealthy pay more, simply because the most wealthy have more money? What if you made millions next week on a new product you designed? Would you be alright with the idea of paying half of your income in taxes all of a sudden simply because of your newly earned wealth? Doubtful.
And let us not forget it is taxation of income from those who “earn” it just like everyone else. They simply earn more than everyone else, that is all. It is not only a taking of the tax dollars but a form of punishment, then, as it says to those who make the most money that there is a price for such success.
During the era of The Soviet Union, the same economists would have said that such taxation is also a taking of the incentive to be successful in the first place because the greater portion of your sweat and toil goes straight to the government who then decides what to do with it. The Berlin Wall fell only twenty years ago when The Soviet Union, the world’s largest communist nation ended, but such esteemed economists as those up for nomination to The Federal Reserve have forgotten that sentiment already. How did they win so many awards? Is that how you win an award as an economist, by simply offering some form of communist/socialist dogma as your thesis?
Look, America is has passed that era and is coming out of it.
Even one of the most liberal of them all, the late President John F. Kennedy, said that “It is the paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now…Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.” (Nov. 20, 1962)
We must extend The Bush Era Tax Cuts for all and even lower taxes more, so all can have a chance to prosper, to prosper and not be punished for it.
Copyright © William Thien 2010
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