Ahhhh taxes. What a fun topic to bring Big Fudge out of retirement…
(FYI: This will be a formal rebuttal to Taylor’s article Taylor Takes on Tax Reform)
Let me begin by saying, I AM NOT AN EXPERT ON TAX REFORM.
When I first read Taylor’s article I was slightly taken aback. I have known Taylor for some time now and we have spoken about many, many things. I would have bet my bottom dollar that tax reform would have come up once! And honestly, it very well may have.
When I was in school I was conservative by name but, as I feel many young conservative do, I had some liberal leanings: Why should I have to pay for college? Why don’t billionaires pay for everything so that I don’t have to pay for anything?
These are, in my opinion, very natural thoughts. Thoughts that in the society we live in today, are almost bred within us.
What it comes down to, though, is a phrase that an idol of mine, Ben Shapiro, oh so often likes to repeat: “my facts don’t care about your feelings.”
Let me start by addressing what I gathered as the main point of Taylor’s tax reform: higher taxes on the rich are fair because they have money to lose.
Well, where does that end?
For argument’s sake, let’s say that the top tax bracket was 100%. Everything you earned, the government gets. That would be unfair right? Of course it would! And the people in that bracket would stop working/earning money. Why would you work when you are getting literally none of the benefits? You wouldn’t!
So that 100% example is just that, an example, but where do you draw the line? When does it become fair? Right now, about 50% of all Americans do not pay income tax. They do not reach the first bracket. The next 40% pay about 30% of all income tax and then the top 10% pay 70% of all income tax in the country! While, I might add, only earning about 50% of the income in the country. That does not seem fair to me. Not only do those bottom 50% not pay any income taxes, they also get to go out and vote for people who are running on the slogan of “Raise taxes on the rich! They can afford it!” *
Now, no one will ever run for office on the slogan “Lower taxes for the Rich. They deserve it!” But economics tells us that higher taxes for richer people also slows economic growth. Have you ever worked for a poor person? No, that wouldn’t make sense. It is the rich that create business and therefore create jobs and products and services, for others. If they are the ones paying the highest taxes and that only increases as they grow, then why would they grow? The answer: they wouldn’t. They would rather make their business smaller and and hire fewer people creating less jobs and hurting the economy.
To me there is only one fair tax. That is the Flat Tax. Doesn’t it make sense that it if I earn X and I pay $5 in taxes and the person down the road earns 2X that he should pay $10 in taxes? I am a firm believer that what YOU make, through YOUR hard work, YOU should get to keep. Saying that someone can “afford” to pay more in taxes is a ridiculous statement. Who are you to say how much of the money that I earned, I deserve? What is this, France? Russia? China?
Tax reform, especially the type I would like to see is quite difficult in the US’s current state. We are in a TON of debt. This debt has to be paid off eventually and that day creeps nearer and nearer every day. Slashing taxes will logically increase the deficits in the short term. That is not something that can be argued. What can be argued is the long term result. Cutting taxes gives people – rich, middle class or poor – room to breath. It allows them to go out and spend the money they make instead of giving it to the government and then saving the rest because who knows when the tax rate will increase. It allows them to create new products, start new businesses, hire more people. Cutting taxes spurs economic growth.
Boy, oh boy… How did we get on this topic? Thanks, Obama!
This was very top level and I know that it is all SOOO much more complicated than that but those are my thoughts. Don’t @ me! Jk jk go for it!
Death & Taxes,
* = All that info was from: TaxFoundation.org. Check it out so you know I’m not just making stuff up.