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Posts Tagged ‘The Rich’

Tax Cuts for the Rich

10 Sep

political satire cartoon about tax cuts for the rich

Cutting taxes for the richest citizens is only a bad thing if you believe it is the government’s job to punish people for being successful.

Those who want to raise taxes on some and lower them for others do so because they believe it’s the government’s job to use the power of the federal government to pick winners and losers – to punish people arbitrarily for what they like and don’t like.

My kids get paid for doing chores. If son 1 does more work more efficiently and earns $4 but son 2 only earns $2, is it my job to forcibly take away money from the one who earned more and give it to the one who earned less?

No. It’s immoral.

Political cartoon of redistribution of candy at Halloween

On the other hand, those who want to lower taxes do so because they believe that money in the private sector is more productive for the economy and freedom than government confiscation, waste, and redistribution

The private citizen has no vested interest in wasting money. The citizen (and corporations run by citizens) are interested in investing the money to get something of greater value, whether that’s goods or more money. So if the rich keep more of their own money, they invest more in the market – that’s putting money into businesses, who add value to the economy and create jobs.

This pursuit to get more value drives the market and also drives corruption, where someone will want to use their ability to impede the ability of others’ liberty for their own gain. This is where the government steps in, protecting the citizens’ liberty from being infringed on by others.

These two views are diametrically opposed on what the purpose of the government is. The first “liberal” view is that the government’s job is to solve all of society’s problems and through arbitrarily deciding what is “fair,” pick winners and losers by force (like taxing some at different rates than others). In this view, government is the solution to everything and should be always getting bigger and more invasive in citizen’s lives.

The second “conservative” view is that government’s role is ONLY to do things that the market cannot practically do – protect people’s inalienable right to liberty from being invaded by others in or outside of the country, and a few other things that private citizens or corporations can’t do. In this view, government intervention into people’s lives is a problem, and government should be strictly limited with enumerated powers.

The second view is how the founders set up America, and is the view that lead to America’s greatness from the start.

 
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The Rich Need to Pay Their Fair Share

09 Sep
Photo of Obama at his Job Speech to the joint session of congress on September 8, 2011
Obama speaks to congress about the rich needing to pay their fair share.

As expected by many, Obama’s job speech last night consisted of recycled rhetoric and finger pointing. One of the key phrases he uses is:

The rich need to pay their fair share.

The ambiguity of this statement is astounding. Clarity is needed, not Ambiguity. As G. K. Chesterton said, “Evil always takes advantage of ambiguity.”

So the questions are:

Who are “the rich”?

“Rich” and “Poor” are arbitrarily defined by the government. President Obama picked a number $250,000. If you make that much or more in a given calendar year, you’re rich.

“Poor” is also arbitrarily defined.  I recently heard a reporter say that one out of seven Americans is “poor.” I don’t think the reporter was lying, but they are speaking according to whatever income dollar amount the federal government picked to define the poverty level.

There’s nothing to stop the government from saying that the “rich” are those who make a million dollars per year or those who make more than $40,000 per year. Likewise, there’s nothing to stop the government to adjust the numbers to show that 50% of Americans live in poverty.

The terms are meaningless. They are only used in order to create angst between American citizens and to create a class warfare of classes that the government arbitrarily picks to pit against each other for the benefit of the politicians in power.

What is a person’s “fair share”?

The consequence of falling into the group that Obama calls “the rich” is that you are to be despised by all other Americans. You are wronging all Americans by not paying your “fair share.” The problems that citizens experience are your fault.

What is the fair share of the rich? Let’s take a look at some numbers

The richest half of tax payers have 100% of the taxes. The less wealthy 50% pay nothing – in fact, they have  net gain from the government, usually through social programs where the taxes paid by the 50% that pay is paid to them through welfare, social security, etc. Is it fair that only half of the country pays taxes?

The richest 5%, those who made over $160,000, paid 59% of the taxes. 5% of people paid more than half the taxes in America.

It’s startling to look at the numbers and and realize the president thinks the top 5% paying about 60% of the total tax revenue is not their fair share. If they have to pay more to pay their fair share, how much would the top 5% have to pay?

Tomorrow: Tax Cuts for the Rich.

 
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