We are once again in the political season, warming up for a presidential election. Once again we hear how the country is divided between the haves and the have not’s. And once again we are hearing about how the rich should pay more taxes.
What divides the ‘haves’ from the ‘have not’s”? The simple answer is wealth, but how do we typically define wealth?
I believe we are mostly appalled by the trappings of wealth and not the wealth itself.
We tend to be envious of those who flaunt their wealth … Donald Trump, but not concerned about Warren Buffet who actually has more money but lives a more ‘normal’ life style.
I find myself envious of professional athletes, but not because of their salaries. No, I’m concerned by their lavish life styles.
I find myself concerned by the idea of increasing taxes on the ‘rich’. First of all, who defines ‘rich’. Secondly, I realize that any money taken from the ‘rich’, or anyone else for that matter, is simply less money available to grow the economy.
Taxes and especially those used to grow the bureaucracy, are simply wasted and reduce the growth of the economy. Just look at the past 6 years when the bureaucracy has boomed and the economy lagged.
Taxes are used to suppress demand. Just look at the taxes on cigarettes. Their stated purpose is to reduce demand.
Taxes on wages and investment do the same thing. They reduce earnings and investment.
There is a solution. It’s called the Fair Tax and it eliminates the tax on wages and investment.
It might well reduce the spending on, what I consider, outlandish items such as multi-million dollar homes, multi-thousand dollar cars and other ostentatious spending by the so-called ‘rich’ by forcing them to pay more taxes on those expenditures.
Where is this diverted money likely to go? Probably into investments, many of which would create jobs for the rest of us. Isn’t that exactly what we need?
I hate the current tax system and the IRS. Let’s get rid of both. Adopt the Fair Tax and free our economy from the burden of income tax.