Can You Increase Prosperity By Taxing Success? - Politicrossing
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Can You Increase Prosperity By Taxing Success?

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“You can’t increase prosperity by taxing success.”

~ Calvin Coolidge

 

One of the mantras of Democrats is to make the wealthy pay their fair share. You heard it often on the campaign trail from the plethora of Democrat candidates who ran for president. So it should come as no surprise that one of the most vocal proponents of soaking the rich, Sen. Elizabeth Warren (D-MA), has offered up legislation for a wealth tax.

The bill, called the Ultra-Millionaire Tax Act, would apply an annual 2% tax on individuals with net worths between $50 million and $1 billion. Individuals worth over $1 billion would pay an annual 3% tax. Senator Warren claims it will generate $3 trillion in revenue over 10 years and that money would be invested in programs such as child care, education, and infrastructure.

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On the surface, this may sound like a good idea to the common citizen working a 9 to 5 job. Why not soak the rich and make them pay their fair share? One must ask a counterquestion. What do you consider a fair share?

The top 25% of taxpayers pay 86 percent of total income taxes. The top 10% of taxpayers pay 70 percent. The top 5% pay 59 percent. The top 1% of taxpayers pay 38.5 percent of total income taxes. In contrast, the bottom 50% of taxpayers pay only 3.1 percent of total income taxes. It is a myth that wealthier individuals aren’t paying a fair share.

The next question is how do you enforce this wealth tax? It’s an administrative nightmare. In Warren’s proposed legislation, she allocates an additional $100 billion into the IRS for enforcement and mandates a 30 percent annual audit rate for the agency. That would mean hiring more IRS agents and a third of American households would be audited every year.

On top of that, do you really think wealthy people like Bill Gates, Mark Zuckerberg, Jeff Bezos, and Warren Buffett will actually pay that wealth tax? They may be big liberals but also realize they have some high-quality accountants to help avoid paying any more in taxes than necessary. They will find loopholes and off-shore accounts to shelter their wealth.

You may wonder why does this even concern me? Do you think politicians like Elizabeth Warren will stop at those with wealth of $50 million or more? You can already picture a scenario where the revenue this wealth tax brings in will be far less than they anticipate. Thus, they will have to expand the tax to anyone who has wealth of $20 million or more. Then to $10 million or more. Then to $1 million or more. It’s yet another slippery slope to an ever expanding tax.

“Well first of all, tell me: Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? What is greed? Of course, none of us are greedy, it’s only the other fellow who’s greedy. The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system.”

~ Milton Friedman

 

If Elizabeth Warren and her comrades were truly interested in leveling the playing field and making a difference in the lives of people across America they would advocate for limited government and focus on a more robust free-enterprise system. The reality is that’s not what they are seeking.

This legislation is more about pandering to the Democrat base and low-information voters in a continuing concertive effort at fostering class warfare and animosity. By creating division through class and racial strife the Democrats see their path to decades of power. This is all about redistribution of wealth.

You can’t expect to build up the weak by pulling down the strong. The entrepreneurs and visionaries create jobs. As businesses grow and expand they create further job opportunities and opportunities for ancillary businesses.

Warren’s legislation is an impractical and arbitrary scheme of leveling. It’s despotic and completely antithetical to our Constitution. In a sane Congress this legislation would find its way into the trash can. Given the current political situation in Washington that seems unlikely. Democrats are pushing forward on every one of their Marxist policies and insanity runs amok.

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Michael was born and raised in Wisconsin and is a graduate of the University of Wisconsin with a BA-History. He started writing a blog in January 2016 called, Conservative Thinker, and has written about politics, foreign policy, economics, and social issues with a historical perspective. He resides in Cullman, AL and enjoys hiking, photography, and traveling in his spare time. You can find him on Twitter and Instagram @buckyboymike and follow his blog at conservativethinker.net.



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The Post That Made Facebook Threaten One of America’s Top Motivational Speakers

Apparently you aren’t allowed to ask pointed questions that make the leftist overlords look bad.

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Apparently you aren’t allowed to ask pointed questions that make the leftist overlords look bad. Check out PolitiCrossing Founder and motivational speaker Chris Widener’s post that earned him the threat:

If Covid was so deadly, would Democrat politicians get caught without their masks dining at French Laundry? Or going maskless in their private jet terminals? Or at the ball games they attend? Would they really risk their very lives?

If the seas were really going to rise from global warming would Obama really own thirty million dollars of beach front properties?

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If this is so deadly, would they allow us to pack hundreds of people into an airplane eighteen inches from each other (yet require you to “social distance” while you get off the plane)? Would they allow thousands of people to use the same touch screen to check in in airports like I just did ten minutes ago?

You have been fooled my friends. Look at what they do, not at what they say. The biggest scams in human history are being pulled on us and half our country goes along with it because they have no discernment of right and wrong or truth and error. And worse, when you call them on their BS, they act indignant and curse and belittle you.

Why would they keep virologists from the best schools in America from getting their message out that this is a scam? Why would they keep you from using medications that have been around and safely used for decades?

We simply cannot continue to allow these shysters to harangue us into complicity. I for one will continue to fight until my dying day for truth against duplicitous manipulation.

If someone told a crowd of 1000 people that they have to shut down their businesses and stay home from school and wear masks or else ONE of those 1000 people would die in the next year, would you do it? Of course not. That’s the math, and only if you believe all the reported cases of death by Covid were actually true but of course we know that many deaths were categorized as Covid deaths but weren’t.

And yet that is exactly what we have done.

Why would they roll out a vaccine that doesn’t even keep you from getting Covid and has tons of side effects and roll out national marketing campaigns to pressure everyone to get it?

What’s really going on here?

It is time to put on your thinking caps, my friends. Just because someone in authority says something is true doesn’t make it so.

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Pay as You Go

We each benefit by pacing ourselves for the long haul.

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In 1900, the median age of Americans at the age of death was 49 years old. By 2018, life expectancy of Americans had jumped to above age 80. Career professionals, like nearly everyone else, are living to ripe old ages. As such, they need to pace themselves for the long haul. A personal story helps illustrate the point.

Machinists Know Best

I worked with my friend Peter, for Smyth Manufacturing Company, the book binding equipment manufacturer, the summer before we entered college. It was my only time in a job shop, and I learned many lasting lessons such as the importance of cleanliness in an industrial setting.

Before you left for the evening, you oiled your machine, wiped the floor and counters, and cleared away scraps and extraneous items so you could begin the next day without impediments. The craftsmen sometimes elaborately cleaned and reorganized items in the middle of the day as well, as they switched from one job to another.

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When you’re working with potentially dangerous industrial equipment, you can’t afford to have a stray bolt or paper clip lying around that could catch in a gear and fly across the factory floor into someone’s face.

Control the Immediate Environment

As deftly as these job shop professionals worked, they continually maintained control of their immediate environment because they understood its importance on many levels. In case you think they were being overly cautious or were paid some admirable hourly wage, guess again. These workers were paid by the piece, and they were known as “piece workers.”

Any one of them could have easily increased their output on a given day by slacking off on cleaning and maintenance procedures. After all, if you can turn out seven pieces in a day spending 30 percent of your time cleaning and maintaining, you might be able to produce more than 10 pieces if you completely concentrate on your output.

In the short-term, you could make more money. Longer term, you could injure yourself or others, create more waste, shorten the equipment’s life, or get fired.

A Primary Lesson

The lesson for us all is to “Pay as you go.” Clear the decks each night, arrive ready for the next day, and pace yourself for the long haul.

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