Creating Fair Taxation

Meta777 · May 18, 2016

Shiva_TD said: ↑

Under-taxation of higher income households that can afford to pay higher taxation has resulted in the national debt we have today and not a lack of personal income. As my analysis indicates if we only tax the top 50% of income (i.e. all income above median income) the tax rate would have been 29% in 2013 and 24% in 2014 based upon gross personal income of the United States. Don't even try to claim that someone like Mitt Romney that earns over $20 million a year can't afford to pay $5 million in taxes.

That all depends on what is being taxed. If the tax is increased on disposable income used for consumption then it results in less consumption but that's not true with disposable income used for investment purposes. The only investments that benefit the economy are "primary investments" (e.g, direct purchases of stocks from a corporation) but based upon an analysis of SEC transactions for a month less than 0.00005% of all investment dollars are for primary investments. Statistically, rounded off to 1/1000th of a percent the amount of investments in primary investments is ZERO. Secondary investments (e.g. purchases of existing stocks on the stock market) don't do anything for the economy.

In general I agree and the proposal I've put forward DOES CUT TAXES. As noted it would have reduced the personal tax rate from 39.6% to 29% in 2013 and it would have reduced the 39.6% tax rate to 24% in 2014. That's a TAX CUT in case you didn't notice and it would have fully funded the Congressionally authorized general expenditures of the federal government.

Do you believe in the US Constitution? If so then the Constitution delegates the role and responsibility to Congress to determine what the necessary expenditures of government are and is not something we have any say in. We can have opinions but it's Congress that determines if the spending is doing any good.

Of course we can have personal opinions and I'll express a couple of mine.

Welfare assistance mitigates the effects of poverty but was never designed to reduce poverty. When it comes to the mitigation of the effects of poverty the welfare programs have been successful although the limited funding reduces the effectiveness of the programs. If we spent more on welfare assistance then it would do a better job of mitigating the effects of poverty. What our government hasn't been doing very well is addressing the problem of poverty so that the necessity for the spending is reduced. Many complain that welfare assistance hasn't reduced poverty but they ignore the fact that it was never intended to reduce poverty. It only mitigates the effects of the poverty.

On the other hand we know that the 2003 invasion of Iraq has created an increased terrorist threat. ISIS is a direct result of the installation of a Shi'ite controlled government in Iraq following the US invasion by the US government. That was money poorly spent because it increased the costs of the United States government to address the expanded problem of terrorism that threatens us. The same can be said of the invasion of Afghanistan because we're still there spending hundreds of billions of dollars not to mention the blood of US soldiers sent to fight that war.

Of course hindsight is 20-20 so often we're stuck paying for poor decisions by our government.

For example if the US government been more proactive in the "War on Poverty" by reducing poverty as opposed to simply mitigating the effects of the poverty with welfare assistance we wouldn't be spending as much on welfare assistance today. If the Minimum Wage, for example, had simply been increased based upon the cost of living there would be far less money expended on welfare for working Americans.
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'An ounce of prevention is worth a pound of cure.' - Ben Franklin

JohnnyMo · May 18, 2016

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Creating Fair Taxation

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