Wednesday, January 9, 2013

Don Obama And The Democrats

     President Obama and the Democrats have made whipping the "rich" the core of their political ideology. Convincing the public that the so-called rich are not paying their fair share has been the single note played in the modern Liberal orchestra. It is the hammer they used against Mitt Romney to win re-election to an office that Mr. Obama had proven he could not successfully execute. This constant drumbeat against the rich in a war meant to divide the classes is also how the President and Congressional Democrats were recently able to raise taxes on the very people this faltering economy needs to create jobs.
     Conservative radio and print, as well as this very blog, have repeated the statistics from the IRS that show the top 10% of wage earners in this country shouldering 70% of the total Federal tax burden. The top 1% pay a whopping 40%. Do President Obama and the Democrats think that ultimately a fair tax system would have 100% of the taxes paid by the top earners, leaving them nothing with which to invest and create jobs? Do they not understand that high taxes drive away the wealth that is needed to create prosperity for all? Sadly they don't understand or more on point, they deliberately want to limit wealth creation in order to expand the welfare state.
     For decades now the people who benefit most from government pay the least into it. Conversely, those who pay the most in Federal income tax use the least amount of government services. The rich receive the same amount of military protection as the poor, drive on the same roads and have their trash picked up weekly, just as the poor do. But the poor, who pay nothing into the system, receive more direct financial support than the rich. I point this fact out, not to denigrate the poor, but to illustrate the fallacy of the Liberal argument that the rich somehow do not pay their fair share in taxes. Thirty years ago, before Ronald Reagan lowered the top marginal tax rate from over 70% to 28%, the top 1% were paying 20% of the total Federal tax burden. As previously stated, the top 1% now pay 40% of the total. This means that the base from which the Federal government receives taxes has shrunk over the last three to four decades. In more direct terms, there are now more people riding in the cart and fewer pulling it. At some point the cart will no longer be moving forward. This future has been abundantly illustrated for us by modern-day Europe.
     It's time that this country has a truly fair tax system where the burden is spread among the majority of citizens. A flat tax, where everyone paid the same percentage of their income, would be a step in the right direction. But eliminating the income tax and replacing it with a consumption tax would be the most fair. In this fairest of systems, people would be taxed when they spend their money, not when they earn it. This eliminates the Federal government being slave master over a man's labor. The current system is a bit like the mob, we ask, "How much do you want?" and they respond by asking, "How much yous got?". It seems Don Obama and his henchmen want to confiscate more from those who have more and use the Federal government as an enforcer in some demented protection racket.

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  1. A tax on consumption is a good way to begin. We know the wealthy purchase items that are usually more expensive, i.e. a BMW or a yacht or platinum jewelry and therefore will only affect the wealthy. However, those who pay no income taxes will also have some "skin in the game" because they will also be paying taxes and hopefully will be more interested in the government using their money frugally and intelligently .

  2. In a fair tax system, everyone would pay the same rate!

    1. That is correct. What could be more fair, other than not taxing labor and instead taxing consumption. In Ancient Israel every citizen paid the same amount, half a shekel. That way the poorest of citizens felt they were contributing as much as the richest and the richest didn't feel bitter about having their money confiscated from them.