Diary

Taxes Tax You Over and Over

Think about taxation. Everyone agrees that a low tax rate is acceptable to create a smoothly operating society. Few people are opposed to paying taxes that are reasonable. The Constitution even has clearly delineated provisions for levying taxes through the congress.

But virtually all taxes in America are too high because most services offered by governments are performed by overpaid and wasteful government employees and agencies when they can be achieved by private enterprise at one-third or one-fourth the cost.

On the bright side, many localities and states have successfully privatized some public services and thus those services are offered at much lower rates. There needs to be more of this.

Now imagine that you are paying a modest local tax rate for your public services – roads, sewers, police, fire protection etc. Now imagine that a big-spending Democrat mayor gets elected in your town and announces that he is going to raise taxes substantially. The citizens ask “Why?” and the new mayor responds that he needs the extra money to improve services or to “help the poor”, which he really does not. Because his real motive is simply to further indebt the public to socialist policy, and to expand the bureaucracy and to increase government power.

So you suddenly are paying higher taxes. What does this do?

It taxes you over and over, that’s what it does.

If your city charges you an extra thousand dollars a year in taxes, you become poorer. And your neighbor becomes poorer too. This is bad for society, for people to be poorer. But socialists make citizens unnecessarily poorer every day.

But wait. There’s more. Since your electrician also is paying those higher taxes too, he is poorer and he has to increase his rates to recoup that money. Because businesses have to account for their own costs in the rates they charge. So the electrician’s higher taxes are pushing up the cost of his services to you, the homeowner. And thus you are taxed again in your electrician’s bill.

How about your carpet cleaner? As taxes rise, he has to push up his rates too.

And on and on. Every single service you use adds to your cost of living through their increasing tax bills.

And when you are made poorer by the higher taxes you are paying, and by the higher rates you pay your electrician or carpet cleaner, you need more money to recoup. So someone else down the line has to pay you a higher salary for your job if you are going to maintain your standard of living. Otherwise you will stay poorer.

It is a vicious cycle that liberals know well and exploit every day. In fact they are using it to make people poorer using a multiplier effect, where one tax reverberates through the economy over and over.

If you go out to dinner – particularly in a big city like Chicago with the highest sales tax in the nation at 10.25% – first you pay the sales tax, which is a huge wallop to your wallet. And then a significant part of the cost of the dinner goes to simply paying taxes – the exorbitant business taxes that the restaurant has to pay; the higher salary of the restaurant’s owner and manager because they have big personal income tax bills; to pay the higher salaries of the restaurant employees because they pay high urban income taxes, property taxes, sales taxes etc.; and to account for the higher prices the restaurant pays to its suppliers – for meat, vegetables, coffee, napkins etc. – to cover those suppliers’ high business taxes, and to cover the higher wages they have to pay to their employees to account for their own tax bills.

See how corrosive taxation is? It taxes you over and over.

In high-tax Europe, one of the reasons that the cost of everyday living is very high is because people and businesses and services and transactions are taxed at every level every day. These taxes grow like a snowball rolling down a hill, cumulatively pushing up the cost of living.

Many businesses even close up shop or move away rather than pay excessive tax rates. This is one of the reasons that so many corporations moved their headquarters out of New York City over the last 40 years. And this not only makes New York City poorer, but makes the remaining citizens responsible to make up those lost tax revenues with… more taxes.

Taxes tax you over and over and over. They make you poor once, twice and three times over. Democrats know this but most people do not. Many citizens accept tax after tax after tax because they are propagandized by the media. And that is why Democrats push for relentless tax increases, in order to incrementally weaken the citizens economically, and to make otherwise independent people more prone to needing government help to survive, thus empowering socialism.

And this is why taxes across the board and across America must be lowered all around. Our nation was founded by men who recognized the hurtful nature of excessive taxation all up and down the line. In fact they fought a revolution over it.

On the other hand, of course, lower taxes encourage businesses to expand and to create jobs and wealth. So which is better? Higher taxes or lower taxes? History shows it to be the latter.

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