Our rights do not originate with government, but they are to be "secured" by government.

Thursday, April 14, 2011

Liberals Think Your Stupid Or.....

Either liberals can’t do basic math or they are liars. There is no other answer. Their constant mantra of “Tax the Rich” is based on creating a false “class warfare” not on increasing government revenue.

Consider what would happen if we did as Michael Moore suggested and “Eat the Rich.” If we taxed those who make more than $250,000 a year at 100% and taxed 100% of all Fortune 500 companies’ profits, and confiscated all billionaire's total assets, we’d only cover a portion of the government’s annual expenses for one year. The rich don’t have enough total wealth to fix our problems. What’s worse, is next year those people would change their behavior and make dam sure that they reduced their income and hide their profits, or move to a place that allowed them to keep the money they earn. So the idea that we can solve our problems by taxing the rich just doesn’t add up.

Michael Moore is a prime example of people changing behavior based on what it will cost him. He was recently in Wisconsin ranting and raving and getting himself on the news in support of the public sector Unions, yet when it’s his money, he chooses to shoot his films where he doesn’t have to use union labor and shoots his films without union labor so that he can maximize his profits. He just doesn’t expect everybody else to change their behavior so they can keep more of what they earn.

As a percentage of GDP our taxes are the most progressive of all western industrialized nations. This explains why American businesses are moving overseas. Liberal high-tax ideologues don't see it. They would be horrified at the idea that we ought to lower our corporate tax rates, just so that more American businesses would do more of their business at home, providing more Americans with much-needed jobs.

You cannot cut taxes for the poor, they don’t pay any taxes, and therefore virtually any tax cut would result in being for the people who pay the most taxes, the rich. Because tax policy actually does affect behavior, when the rich are allowed to keep more profits, they do things to generate more profits, and hence although the rate of taxation may be lower, the results are the total dollars they pay in taxes is higher. History is clear, cutting very high tax rates has ended up bringing in more revenue to the government in the Coolidge, Kennedy, Reagan and Bush 43 administrations. This included more – that’s MORE not less-- tax revenue from people in the highest income brackets than before. Some liberals doubt this and claim it is a lie using the fact that under Reagan with the tax cut was an accompanying increase in the national debt. The fact is total revenue did increase but was more than offset by even greater government spending; if spending increases faster than revenue increases it doesn’t do much good, you're still deeper in debt.

No matter what a liberal thinks, or a liberal wants to be true, or what a liberal tells us, changes in taxes policy result in changes the way taxpayers behave. Regardless of the tax policy, the revenue collected by our government since WWII remains relatively constant at just under 20% of GDP. Lower taxes and we generally see an increase GDP and thus greater revenue for the government. Raise taxes and people move their money to tax free bonds or offshore. Their money may not earn as much profit but amount of money they can keep is better and there is less risk. There is a balance between zero taxation and 100% taxation which maximizes revenue. History is clear that if you raise taxes too much you get less. Liberal high-tax ideologues don't see it that way. They would be horrified at the idea that we ought to lower our corporate tax rates, just so that more American businesses would do more of their business at home, providing more Americans with much-needed jobs.

Liberals do not want to increase taxes to increase government revenue, they know that this will not work; they are liars if they say or imply that we need tax increases to increase government revenue. Liberals are more concerned about wealth inequality than they are about jobs, the health of the country, liberty, freedom, human rights, quality of life. Rather than deal with what “is”, they deal in what they think “should” be. The act just like a mommy, and don’t think anybody should suffer as a result of the life choices they make, and want to make everything fair. Because they think it’s unfair that some people have more than others, rather than let some people succeed, they are willing to make everybody suffer. In a rare moment of honesty, while on the campaign trail Obama said that raising the taxes on the rich was about being fair, not about raising revenue for the government.

Liberals fundamentally don’t believe that society should reward people for what they contribute to society based on free and voluntary exchange with their fellow members of society. Because this will result in some people having more than others, becausenot everybody has equal talent, abilities, drive and luck. Liberals believe but that some ruling elite should distribute wealth based on their egalitarian principles, not based on the effort individuals contribute to society. The 20th century has many examples of this, all failed and ended up not only putting everyone in those societies (except for the ruling elite) into poverty, but resulted in those same ruling elite murdering tens of millions of people to maintain their power.

Don’t confuse our current system with Capitalism or Free Enterprise, because it isn’t. We now live in a semi-free corporate crony state, where the government picks and chooses who it wants to succeed based on how much they “donate” to the correct political coffer. It is not free enterprise, fair or voluntary trade between free people. Look at the tax code; nobody can say that it treats everybody equally under the law. GE is a prime example, they have legally found a way to protect their shareholders assets and virtually didn'tpay a dime in taxes last year. Again this is where liberals confuse what “is” with what they think “should” be, and blame capitalism for the unfair advantages some lawmakers in washington have granted to favored corporations.

Taxing income and profits and the ability to create special exceptions to those taxes (loopholes) is how the ruling elite in Washington hand out political favors for “donations” and attempt to control how and where people spend money. If they think you should buy an electric car, then they will allow you to deduct from your taxes part of the price of that car. This is of course of no benifit to the poor who cannot afford a new car. It gives the government an excuse to know how much everybody earns and how they spend that money, and uses that information to change and create tax law to manipulate the behavior of people to do what the ruling elite thinks is best, then redistribute these tax funds to purchase votes and maintain power. Because controlling tax laws have given the government so much power it is hard to imagine them truly “simplifying” or making the tax laws “fair.” If they did so it would greatly reduce their power. We will never again see fair taxation, the ruling elite have discovered they can control behavior and buy votes with tax dollars.

Listening to Obama, Pelosi, etc. it is clear that the liberals are upset . . again. They lost the power to totally control tax law, because the people of the USA got all uppity with what they were trying to do when they had the power. Even with democrat control of the House, a super majority in the Senate, and the Presidency their ineffectiveness was evident as they failed to pass a budget. Now, because all tax laws must start in the House of Representatives and even though liberals control the Presidency and the Senate, they only have moderate control of tax law. To get what they want, they once again have to deal with conservatives (Rep. Ryan) and libertarians (Rep Paul). They are doing so by calling Ryan’s proposed spending increases extreme cuts, and maintaining their call to tax the rich more.

So we are left with only two options when thinking about liberals. Either the liberals are so dumb that they can’t do basic math and look at history, or they are lying and think the American people are so dumb that they can’t do basic math and look at history. In either case their continued call to save the country and make things fair by increasing taxes on the rich, can obviously be discarded as a the wrong direction for this country. It will neither generate the increased revenue as promised nor will it make things fair. You decide either liberals can’t do basic math or they are liars.

1 comment:

  1. Well said, I came to exactly the same conclusion yesterday. I did some math in my blog:

    http://rickinjim.blogspot.com/2011/04/rich-dont-have-enough-money-to-fix.html

    then I found some better math, here:
    http://online.wsj.com/article/SB10001424052748704621304576267113524583554.html?mod=googlenews_wsj

    ReplyDelete