Thursday, October 25, 2007

Does this really seem "Fair"?

What I'm talking about is this: The moonbats known as Democrats are proposing a 4.5% surcharge on the income tax on an individual making $150,000 or more.

This may, at first, seem like a good idea? Why don't we punish those evil, evil rich people who are so obviously keeping the little man down. Except, can you really give an example of them keeping you down? Honestly, wealthy people create more wealth for those around them. Anyone who works at a company knows that. Some rich guy, who has earned his wealth fair and square, starting with nothing and working his way to a fortune, now employs other people--increasing their wealth. He also requires services and supplies from others, therefore increasing their wealth, and the wealth of their employees.

In their personal life, they consume more goods. Shouldn't we punish their consumption? Well, first of all, why is their consumption your business, other than jealousy? Second, their conspicuous consumption of goods and their expensive lifestyles create, you guessed it, more wealth for others. Their big ticket items are bought from companies that increase wealth. They hire people to do services such as yard work and child care that increase the wealth of their employees.

So, knowing this, what exactly is our motivation for taxing them more? Is it that they can afford a larger tax burden so its fair to tax them more? Well, let me ask you this: just because you can afford to pay more taxes, should you? Taxes, in a large part, go towards social services. Most wealthy people are not taking advantage of these social services, aside from spending on defense. People making less money, specifically below the poverty level, take advantage of these services more. If we are interested in being fair, the people utilizing the services should be taxed more due to their burden on society.

I am not actually suggesting that we tax the poor more. They don't have the money, first of all, so it doesn't make much sense--can't squeeze blood from a stone.

Here is something else to consider: If we tax these wealthy, wealth producing individuals more, what do you think will happen? Imagine this--You are independently wealthy, making $250,000 a year as the head of a small company. Your family employs a landscaper to take care of the lawn because you actually find yourself at work a lot, being the boss, and you didn't get to your position of success by being a slacker. You utilize a day care service for little Jimmy and little Sue because the Missus volunteers at church a lot, or also works. You are quite comfortable, and not exactly scraping by. Now imagine that the brain-trust that is Congress decides that your share of the income tax needs to go up by 4.5% just because you have managed to succeed (btw, does it make sense to punish success?). That comes out to an additional tax burden of $11,250 a year. Some things will probably go through your head: for instance, "hmmm. A lawn mower only costs me $300. I could fire the lawn guy I'm paying a hundred bucks a month for. Or, I could bring the wife home and save $8500 a year on day care."

As you can imagine, something would probably have to give so you could maintain your same lifestyle. Lets face it, pretty much anytime you get a raise, unless you are more frugal than the average American, you figure out a way to spend some of it. Bills always seem to rise to meet income. So, what are you going to do? Well unfortunately either option is going to end up destroying wealth. That's right. You now have less money to spend on services because you are paying more money to the government. So, now someone else is taking it in the shorts. They may even need to lay someone off. Now there is someone else needing the help of government social programs.

Sounds almost like its a conspiracy to get everyone dependent on the government, if you ask me.

What can we do, then, to increase our tax revenues in a fair manner, without penalizing success, growth and entrepreneurship? Check out The Fair Tax, also known as H.R. 25, The Fair Tax Act of 2007 (see entire bill text here). For once, the Congress has named a bill appropriately. Instituting a federal sales tax and abolishing the income tax, you will no longer be penalized for your hard work. There are no exemptions, so the truly rich, who find so many tax loopholes to protect their wealth that many of them pay almost no taxes will pay a fair share. In fact, everyone pays a fair share, and the poor get a break. It eliminates the $1 billion a year governmental burden known as the IRS and replaces the reams of current byzantine tax code with about 133 pages of easy to read text.

Check it out, then write your Congressmen to tell them what you think.... And leave a comment here to tell me what you think.

1 comment:

Old Man said...

Spot on! Simply a way of liberals to express their disdain for those who have done more than they have; class envy. A poor person has never offered me work that I could morally accept. Anyone remember the French Revolution and the class envy that resulted in the execution of thousands of middle-class people who were just trying to live life? Damn the nanny state mindset!!!