Concepts of Taxation
Figure this.
Fifty percent of the American population pays no income taxes.
Forty percent of the American population receives money from the government.
Fifty percent of the American population pays income taxes in order for the government to give the forty percent money. Some of these pay fifty percent of their income in taxes.
Ten percent of the population pays seventy-five percent of the income taxes.
Here is a statistical twist. Sixty-six percent of the population feels they are over taxed. That means a significant number of persons paying no income tax feels over taxed.
Imagine there are two primary schools of thought in the Congress that taxes and gives.
Concept A: This school of thought proposes to give more. In order to do so they have to tax the fifty percent who pay taxes even more.
Concept B: This school of thought advocates smaller government, less taxes, and reduced entitlements as a result.
For which group is the forty percent who pays no taxes and receives government money likely to vote?
For which group is the fifty percent who pays no taxes likely to vote?
For which group is the fifty percent who are taxed to provide for the others likely to vote?
A vital question is whether the fifty percent who pay taxes to provide for others will continue to be industrious hard working money earning people in order to provide money for the forty percent? How long before they begin to ask why earn more only to have it taxed at a higher rate?
A second question is whether this system in designed so that the forty percent will grow?
Inevitably there will be a tipping point.
Benjamin Franklin foresaw such a time and warned, “When the people find that they can vote themselves money, that will be the end of the republic.”
We are increasing our national deficit at such a rate that in order to reduce it persons making over $250,000 a year will have to pay seventy-seven to ninety-one percent of their income in taxes. Many of these are persons owning small businesses but their income is considered personal even though in reality it isn’t. They will have to reduce employees just to pay taxes.
The forty percent is being told they can get more money by voting for advocates who espouse Concept A. The census promotion encourages people to register in order to get your fair share.
Who is trying to educate and motivate the forty percent? Concept A advocates are. This is their reelection base. By giving them subsidies and entitlements they are buying their votes. That is motivation.
The dumbing down of America is beginning to show. Basic economics and history need to be taught. Is anybody in education listening?
Regarding a work ethic I commend my theme text for life: “And whatever you do, do it heartily, as to the Lord and not to men” (Colossians 3:23).