Tax Nonsense on Tax Day
Having spent my business life as a “tax man” helping to reduce the tax burden on the shoulders of Americans I find the dialogue on the street today almost as misleading and misguided as when I entered the field when the top tax rate of individuals was 91% on incomes over $50,000. Take a look at a recent survey at what groups Americans believe are paying too little in taxes.
73% believe Corporations are paying too little
63% believe upper-income people are paying too little
13% believe lower-income people are paying too little
4% believe middle-income people are paying too little.
Now compare that to the actual income taxes being paid by these groups.
Top 1% pays 38.8% of the income taxes
Top 20% pays 86.3% of the income taxes
Top 40% pays 99.4% of the income taxes
Bottom 60% pays .6% of the income taxes
Why the disconnect? It is quite simple. The people are not paying attention, don’t care and the most important diversion is the lack of investigative reporting by the Democrat-controlled media. The Democrats have only one solution to every problem and that is to tax it, They need to keep that myth alive to support their big government solutions and retain the voter base.
Let’s take a journey through the nonsense.
Democrats through their control of media have convinced the uneducated public that their problems in great part are caused by American corporations (at least 73% of the people buy that fiction). Their solution is to kneecap the corporations with higher taxes.
The fact of the matter is that American corporations pay tax on 35% of their profits whereas their international competition pays on average slightly less than 25%. That puts American corporations at a competitive disadvantage in the marketplace and that will eventually cut the throat of ordinary Americans if we tax them more.
To add to this foolishness, corporations pass their tax burdens off to their customers through higher product prices. So what are the people gaining by taxing corporations? They are just begging to pay higher prices at the check out stand. How stupid is that?
60% of the people pay less than 1% of the income taxes. So when Democrats demagogue the folks with their endless cry to raise taxes on the rich, those in the 60% category give their politicians a ringing endorsement – what do they care, And there is the rub. The 60% don’t start businesses. They don’t hire people. They are not those in the country that light its fire. The 40% do.
The fact that leaves the 60% in the dark is that the rich keep their money working. They don’t salt it away under their mattress. So when the Democrats successfully raise taxes, the money that is working to keep America growing is reduced to the detriment of the 60%. They are the first to suffer a loss of jobs and the sting of rising prices. Buying into the socialist view of taking from the rich is in fact shooting the 60% in the foot.
Now if the Democrats want to talk about the real story of taxation they can’t. You see the real story is that 60% is unmercifully taxed to perpetuate the fiction that the Democrats have successfully managed the Social Security/Medicare programs when in reality those programs are upside down having incurred $45 trillion in unfunded obligations with no other Democrat solutions other than raising taxes or reducing benefits on their table.
You see there is a real neat solution to the punitive taxation the 60% suffer and that is to let the 60% keep the payroll taxes they pay the government, invest that money in the economy and let the magic of compounding turn a working life investment of those payroll taxes into million-dollar nest eggs throwing off tens of thousands of dollars in monthly retirement checks. See here.
But you see the Democrats can’t allow that 60% to become wealthy. If they are wealthy, they won’t need to be dependent on government and the Democrat party. The Democrats know only too well that “personal investment accounts” will spell the end of their reign in the public sector so they will tell any lie, distort any fact, smear anyone that attempts to solve the problem by making the 60% wealthy. They are the anti-people party masquerading as the champions of the “common good.” What a joke that is.