I have been watching the whole tax debate lately. I have come to the conclusion that the Dems Utopian ideas get in the way of them understanding human behavior. You see, they seem to believe that the rich will behave the same no matter what. So if Mr Richman earns $100 and is taxed at 25% the government gets $25 while if you raise the tax rate to 50% the gov will get $50.
An examination of federal income will tell us that the feds get about 20% no matter what the tax rates are. Does this make sense?
It does if you understand human nature.
The fact is that if you tax Mr Richman at 50%, he will do everything he can to avoid paying taxes: hire accountants, find loopholes, take his pay in retirement funds or company cars, etc.In fact with a tax rate of 50%, the feds would likely get only about 20% of his real income.
However, with a lower tax rate Mr. Richman won't think it worth the accountant fees to hide so much and will just pay the 25%.
So how is the government suppose to raise their pay when they need to?
Well, since raising rates does no good, they must raise the number of taxpayers. After all, 25% from 4 people is much more than 50% from one person.
But how do we do that?
Well, anyone who gets their pay from the government doesn't count as a tax-payer.
Why since they pay taxes like everyone else?
If I give you $100 and then take $20 dollars back, you are still costing me $80. So all PS teachers, social workers, policemen, firemen, road builders, welfare recipients, bailout benefactors, non-farming farmers are net losses to the government no matter how much their tax bill is.
So we must increase non-government jobs. Where do they come from?
Like it or not, they come from business.
A Working man without a job is not a working man; he's a welfare man.
How do we get businesses to make more jobs?
"I don't build factories in America because it costs BILLIONS more per year to run a factory their. No, it's not because of the higher wages. It's because of the payroll taxes, property taxes, business fees, capital gains taxes, regulation fees, etc. I can tell where I 'm not wanted. I'm not wanted in America." (As close to an exact quote as I can remember from an interview with an international business man.)
If we want to increase the Federal budget, we must increase non-government jobs.
If we want to increase non-government jobs, we MUST lower taxes on business.
(And isn't taxing the business AND the employee double taxation of the same money anyway?)
This will give them the money they need to either lower prices or hire more workers. Lowering prices raises Mr Consumer's standard of living and increases state sales taxes. Hiring more workers increases the Mr Workingman's standard of living (because he is no longer Mr. Welfareman) and makes more people to tax thus increasing the Feds income.
(Hint: Mr Consumer and Mr Workngman are the same person!!!!)
Everyone wins!
Helping homeschooling and stay-at-home moms make well-functioning homes of peace, joy, beauty, and contentment.
Subscribe to:
Post Comments (Atom)
-
Women who get an abortion between the ages of 18 and 30 have twice the risk of breast cancer than women who never have an abortion. Wome...
-
What is Quiverful? Nothing I say here is in condemnation of those that are infertile through no fault of their own. Some infertility is the...
-
Chapter 53 1Who hath believed our report? And to whom is the arm of the Lord revealed? Who will choose to believe the prophets o...
No comments:
Post a Comment
Thank you so much for commenting! I love to talk to my readers.
I do ask that there be no anonymous commenters, though. If I am brave enough to put my name on this blog, you should be too:-)
Please keep it civil. Remember we are all human and make mistakes, and that since we can't see each other's faces or hear each other's tone of voice, it is very hard to get the emotion in what we are saying each other. Use lots of emoticons! :-) And show grace and love to each other.