I have a very simplistic view on economics. Equally simplistic is my view on taxation. We need not look back very far into our history to trace the origins of the income tax and class warfare. For years the progressives in the Democrat Party have used the income tax and the class warfare argument to punish the rich and redistribute their earnings amongst the so called middle class like some modern day Robin Hood. But one question remains, one I have to ask those who support such a regressive and counterproductive measure: What justifies the government stealing from the rich in order to supplement the lives of the middle and lower class? And if this justification if warranted, then why not give up your lucrative salaries and pensions in the name of this fairness you bark about?
See the argument comes to a screeching halt when you bring this important point to the table. Same goes with the health care reform law, politicians often find themselves quiet as kept and quite frankly outraged at the notion that if the rich, middle, and lower class have to put all in for the collective good, they too should ante up and doll out to ease the pain gripping the country. Remember the words of Vice President Biden: “Time to put some skin in the game, its our patriotic duty to pay more taxes.” All of the sudden politicians have forgotten the patriotic symbolism that could come about if they too “put a little skin in the game” to quote president Barack Obama.
And then you have the so called and self described “centrists” who argue a middle ground and reasonable approach to this tax issue. Essentially their views align with the liberal point of view but its watered down. The centrists say well raise the definition of “rich” to mean millionaires instead of those making 250,000 a year, and change the language from rich to ultra rich, so that the American people are on board. Sadly this so called centrist and “nudge, nudge” approach is just as ineffective as the left wing hard line approach of pure wealth redistribution.
And finally the libertarian view and I suspect the conservative view on taxation: Here’s a little basic math for all you math lovers, of which I am not one: 2+2=4, 4-2=2. If you have less of something you gain less, if you have more of something you ultimately gain more. Now, I’m not rich, if fact according to any government statistical data I’m below the poverty line. But I do not hold the view that it was a wealthy man who has kept me in this economic state of fluctuation. To me being rich is a choice you make, one that I will not choose when I start my career after college. If you value individualism you must then understand that taxing an innocent person or persons for their personal assets is not only immoral but quite frankly its unconstitutional. The progressive income tax is probably the most unconstitutional measure we have in this country next to imminent domain and the Patriot Act. The progressive tax violates our property rights. And if the argument can be made for the progressive income tax then perhaps we should allow government to confiscate the bone marrow of healthy people so that those afflicted with bone marrow cancer would have a chance at life. And to take this obviously outlandish example further, perhaps we should force homeowners to take in the homeless.
Redistribution of any kind is punishment made fashionable because we have lent an ear to the argument that the rich are evil and the poor are all well meaning people who aren’t lazy, unskilled, and unwilling to better their own lives. The hard truth lies in the fact that some just don’t want to lift a finger to lift themselves up, and that they rather rest their mouths on the government tit. And whose fault is that? It’s not the fault of the rich. Our economic system whether progressives like it or not contains a “karma” or a cycle system if you will. Basically what goes around will and does eventually come around once again.
If we tax every single rich and ultra, and megaton rich person in every state in our union every second and every minute, and every hour of everyday for every year we draw breath in our lungs, after all of that we’ll be lucky if we subsidize one thousand middle and lower income families for 6 months. You see eventually those evil rich people will get tired of being targets and they will leave the country or move their assets to offshore accounts. Then what you’ll have is a country mirroring that of some third world banana republic in South America. Like it or not the rich make this country go around because they have the purchasing power. Let me break it down to you like this: If Joe Big Bucks wants to buy a yacht then he’s going to shop around for the best deal possible. And that falls on three competing companies that specialize in building, customizing, and selling luxury yachts: You have the large company, we’ll call them Yacht Co., then you have the medium size company, we’ll call them Pacific Yachts, and finally you have the upstart small business called Bob’s Yachts. Now, in order for one of those companies to have a successful sale and make a profit they’re going to need Joe Big Bucks to order a yacht from their respective companies. When Joe Big Bucks finally choose which company has the best deal he’ll order the yacht, the employees at the yacht shop builds the yacht, the dealer sells the yacht, and thus the end result for Joe is a brand new yacht, and for which ever yacht company sold him that yacht, a profit.
The rich possess the purchasing power, which brings consumerism, which brings sales opportunity, which brings manufacturing opportunity, which results in a sale, which results in profit, which results in more hiring because businesses who profit have the ability to expand. Thus taxing the rich is not only immoral but its the worse possible solution to economic security because you hurt more middle and lower income folks by taxing the rich than you do when you allow rich people to keep more of what they earn. In fact why not allow everyone to keep more of what they earn? After all its our property and last I checked the constitution and the Bill of Rights made clear that we were allowed to do as we well pleased with our own material bounty.
But I’m just one libertarian….