Sunday, February 21, 2010

Tax The Rich, Isn't That The Answer To Everything?

The cornerstone of the Obama economic plan is to increase government spending to "stimulate" the economy, and pay for it by raising the taxes on those who make over 250,000.00 or 200,000.00, or 150,000.00 per year depending upon which speech you heard. It is the classic class envy, soak the rich, sales pitch that the Democrats have been using since FDR, with the exception of JFK.

This is always popular because most people don't make this kind of money, so it is easy to "sell" them that they will get some sort of benefit while their boss pays for it. This isn't a new idea, but is being used to advance a political agenda at the expense of American liberty. We have had many or our leaders speak to us on this their words were never more important to hear than they are today.

“When the people find that they can vote themselves money,
that will herald the end of the republic.”

- Benjamin Franklin

“A democracy is always temporary in nature;
it simply cannot exist as a permanent form of government.
A democracy will continue to exist up until the time that voters discover
that they can vote themselves generous gifts from the public treasury.
From that moment on, the majority always votes for the candidates
who promise the most benefits from the public treasury,
with the result that every democracy will finally collapse
due to loose fiscal policy, which is always followed by a dictatorship”

- Alexander Tytler 1787

"A government that is big enough to give you all you want
is big enough to take it all away."

- Barry Goldwater

"A government that robs Peter to pay Paul
can always depend on the support of Paul."

- George Bernard Shaw

"Our democracy will cease to exist
when you take away from those who are willing to work
and give to those who would not."

- Thomas Jefferson

Let's assume that the number that Obama and the Democrats settle on is that 250,000.00 income number. Even though Obama was heard to say that he was now "agnostic" on the idea of raising taxes on the middle class.

Surely those "rich" people have been getting away with not paying their fair share for years haven't they? I mean under Bush and the Republicans those "fat cats" have had it made. Hasn't it been off the backs of the little guy to pay all our nation's expenses? Isn't that what we hear?

Okay, what are the numbers? Let's look at the last complete record we have to look at, for 2006, the sixth year under Bush's pay off to all those fat cats with his tax cuts for the rich.

Total Tax Bill for ALL Americans:

39.9% paid by the top 1% of income earners.

71% paid by the top 10% of income earners. (31.1% paid by 2-10%)

97% paid by the top 50% of income earners. (26% paid by 11-50%)

Bottom 50%, half of all American INCOME EARNERS, paid a combined total of just 3% of total tax bill.

This was after the Bush Tax Cuts!!

By the way, guess who most of these top earners are? Two thirds of them are small business owners, the very people who create most of the jobs in America. If Obama taxes them higher, and piles on higher health care costs, they will be forced to cut back on that as employees.

We have seen an excellent example of how raising minimum wage has destroyed the job market for young people, there have been over 300,000 jobs lost for teenagers, maybe well over a million when you consider how many people have taken these starter jobs after loosing their better paying jobs and careers.

"We contend that for a nation to try to tax itself
into prosperity is like a man standing in a bucket and
trying to lift himself up by the handle."

- Winston Churchill

"Collecting more taxes than is absolutely necessary is legalized robbery."

- Calvin Coolidge

The results of these policies are easy to predict. It makes me wonder, are Obama and his administration completely incompetent, or are they doing this on purpose to destroy the prosperity in America? I can't imagine a third option, can you?

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