Tax vs Spend the Age Old Debate…

Tax vs Spend the Age Old Debate…

The debt ceiling is going to be raised. I have no doubt about that. I also do not expect for the current administration to actually do anything to stop our decline into third world status. It’s the age old debate: TAX vs SPEND.

I am on record several times and several places as saying taxing the rich will not increase revenue. But I’d like to take a few minutes to explain WHY. And I invite the liberal perspective if you can counter my reasoning without calling me a racist, a hate monger, a fear monger or say I want to kill old ladies, and eat babies… Just trying to keep this civil and since those are the names/excuses we hear all the time, it won’t fly here.

Here’s why taxing the rich doesn’t work. Are you ready? It’s tough to comprehend for some but I’ll try and explain it in very simple terms and slowly.

C A L I F O R N I A.

Understand?

California, the 7th or 8th greatest economy in the world is broke. Look at our tax rates. Look at our employment rate. Look at our crime rate.

Taxing the rich keeps the rich from hiring, NOT taxing them and then THREATENING them also keeps the Rich business owners from hiring. The Rich got rich by being smarter than the rest of us working stiffs. Now listen to this part very carefully.

In 2006, the friendly business environment of America changed. Business owners recognized that a class war was being started in Washington DC. Most “Rich” folks have a lot of “Lawyers” at their disposal and they have a lot of people watching out for their money. After the crash in 08 all the fingers were pointing and politicians danced and pandered.. The Rich kept getting Richer.

The class war was in full swing and Obama was elected, business owners went into survival mode. They laid off workers, cut waste, raised prices and if they couldn’t keep their businesses profitable they closed up shop. Those that survived the crash, then got hit with a “Health Care” change that they don’t understand. They were told they would have to pay a fine, or have to offer a health care plan depending on how many employees they had.

Then the Tax cut extension debate occurred. Business owners were then confronted with the possibilities that their profit margin would shrink because of the tax rate… So no hiring occurred. Uncertainty keeps a recovery from happening. The Rich keep getting Richer but they are NOT hiring.

Now almost three years later. The “Rich” business owners that are still around have figured out they can function, improve their profit margins and hang on with what they have. They are not looking to expand because they are concerned about how they will be treated by the Federal Government. Business owners will not be hiring until they expand. They are NOT going to expand under the current Democrat leadership. So what is happening is a stale mate. Obama could increase the “Rich’s” taxes but it will not bring in more revenue because business owners WILL maintain their bottom line. IF it means laying off ONE employee to make up for the rise, that’s what will happen.

The Koch Brothers are a perfect example here. Lets say Obama taxes them 1 million more dollars a year than they are paying now. The Koch brothers then lay off 10 workers, who earned 100k a year. What happens?

Well that 100k a year those employees made was taxed by the Government, that’s gone. That 100k a year when they bought something paid sales tax, that’s gone. Now that person is collecting unemployment. Money is GOING OUT of the state instead of going in.  That 1 million dollars that Obama took in from the Koch Brothers, has just turned into a deficit to the state and Federal. In about a year, the million dollars the Koch Brothers gave to the Fed has broke even.

So explain to me how taxing a “Rich Business owner” will save us?

 

One Reply to “Tax vs Spend the Age Old Debate…”

  1. I’m gonna get rich one day, gonna hit a big Lotto…

    With MY luck, the day I do I’ll fall dead from a heart attack… 🙄 🙁

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