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Friday, May 28, 2010

Hillary Argues for More Leeches

Update: The CBO released new data concerning who pays taxes. This data supports this article. Click here for the report.

Hillary Clinton chimed in on domestic policy yesturday. She rehashed some old liberal nonsense that the rich are not paying enough in taxes. Here are her comments:

If the video isnt working, click here for it.

Now, after having viewed that, take a moment to look at the truth.

The top 25% of income earners pay 85% of the taxes, while taking in 66% of the income. The top 1% pay 37% while taking in 19% of income. It seems Hillary is already getting her way.
* sidenote: if Hillary really wants to tax the rich more, then she should oppose Social Security, which is a regressive tax--meaning it taxes the poor more than the rich.

The fact is that the economy grows by adding value to things--both rich, middle class and poor. Just like any person adds value to their services by getting further education or experience—or how any car manufacturer adds value to their cars by adding features or improving quality.

The government "taxes" production so that it can provide an environment where production can flourish. This means the government taxes people, so that it can provide ground rules for society, security, and provide public infrastructure among other things. Without these services, there could be no production because nobody could trust that they could retain the fruits of their labors. In such anarchy, there would be no incentive to produce.

However, it must be remembered that taxation is a burden on production as well. When you burden production, you will have less of it—there’s a trade-off here. America's productive capacity can only increase if you burden it less--not more. The government already provides far more rules, security and public infrastructure than anywhere near reasonably necessary, and it wastes most of the rest of the money it gets--whether through reckless spending or just extraordinary brokerage costs. It could easily be argued that government services to the public have gone far beyond the point of diminishing returns.

We're to the point now where most taxpayer's largest liability is their share of the national debt. Its not their house or business or anything productive. Then add their share of national revenues and you'll see that we all already pay far too much! Both the rich AND the middle class (in America, the poor pay little to nothing, in fact many are actually net beneficiaries of the tax code).

Excessive government bureaucracy is a leech on production. In the Hillary-progressive world, you can spend all you want and the government will somehow grow the economy by adding more leeches. Reports have been coming out consistently about how the government sector is growing and is becoming more costly, while the private sector cuts back. The private sector is fiscally responsible because it has to be. The government sector can afford to leech off the private sector, as long as it keeps producing.

In the real world, you have to lessen your burdens on production—i.e. lower taxes to the point where the government is only taking in what it needs to provide its service. You have to refrain from placing liabilities on taxpayers, so that their money can go directly toward productive activity.

1 comment:

韋于倫成 said...