President Obama and the Democrats in Congress hold that increasing taxes will solve the debt crisis and fix the economy. However, gathering more and new revenues simply places a bucket underneath a broken pipe that is our economy. Eventually, the bucket will overflow and the problem reappears. What then? Increase taxes again?
We continue to hear from the left, “Soak the rich!” To what end? Who is considered rich? Recently, the president has taken his argument to the American people and declared the rich must pay their fair share, which is to say, “Hey rich folks. I gotta justify a tax increase, so I am going to vilify you and your wealthy lifestyle. OK? Great. Thanks.” Don’t believe it? One only need listen to the president’s Saturday morning chit-chats where he admonishes “Corporate Fat Cats” and jet owners for…well…their individual achievements. Coincidentally, government arbitrarily decided that Americans earning $250,000.00 are considered “rich.” Seriously? Is someone earning $250k really flying around in their own corporate jet? Something in the president’s logic does not compute.
So what is a “fair share”? Real statistics tell us that the rich already bear the largest tax burden and the poor pay very, very little. In fact, the top 5% of earners pay over 50% of the income taxes in the United States. So I ask again, “What is a fair share?” Is it “fair” to increase taxes on the rich, as well as the middle class (yes, that will happen, too), so that their living standards equal those in the lower class? How does government morally decide what is an ideal standard of living? Furthermore, by what standard does government decide how much an individual is allowed to keep of their earned income?
Government could impose a tax of 90% on the wealthy in America but living standards would not equalize. Furthermore, the debt crisis would not be solved, deficit spending would not end, nor social programs be fully funded forever. It would simply mean less investments, reduced production, fewer jobs, increased prices for scarcer goods. Asking the rich to pay their “fair share” stands on the premise that government is the best arbitrator of America’s earn income and therefore, allows it to hold a blank check. Should Americans simply cancel out their individual liberties and surrender to the whims of government because politicians in Washington can’t manage a simple ledger sheet? I hold that government has proven time and time again that its not a good steward of our taxpayer dollars, and the current debt crisis is proof of this.
No plumber would use a bucket to fix a leak, but instead, would replace the broken pipe. Republicans in Congress are on the right path: cut spending and spending increases. The sooner Democrats and the president realize this, the quicker our economy can recover and we all can prosper. Let’s hope Speaker Boehner carries a large enough pipe wrench in his box of tools.