Progressive Tax vs. Fair Tax

If I asked each of you two questions, I can almost assure you that I could guess your answer each time. The first question is: Do you think that you pay to many taxes? The second question is: Do you want to pay more? Your answers are: "Yes" and "No" in that that order. If they are not, feel free to dump what little money you have left after taxes in the nearest commode.

So let's talk about our current Progressive Tax system. In simple terms: the more you make, the more you are taxed. In other words, as your gross income grows, the Gov't takes a larger percentage. The hardly seems fair. The harder you work the more you are punished? Where is the incentive to make more? Here is a few of the arguments that you will hear about taxing the rich more: 1) They can afford it. 2) They deserve to pay more, because they earned it off the backs of the poor. 3) Who cares? 4) It won't hurt anything, they will continue to pay.

So let me ask a couple questions. Who do we classify as rich? Our current President says that anyone who makes more than $250k per year will be taxed more. Is this gross income or net income? It is net income. So if I own a small company with ten employees and my company makes $500k per year, I am rich. Forget the fact that after taxes, payroll, salaries, more taxes, overhead, mortgage/lease, benefits, bills, etc. I may only have $50k left. Sound bad? Let me go further. Let's say that you raise my taxes. I cannot make less than the $50k that I get now, because my family needs it. So have to let one of my employees go. Now there s one less job, the government uses my higher tax rate to pay the unemployment for this employee I just laid off, and they still do not see another penny. Still sound like a good idea?

The majority of America's middle class is made up of small business owners and entrepreneurs. These are the people creating jobs through innovation and good business practices. It is no secret that smaller businesses spend their money more wisely that large business's. Less waste equals more productivity equals more jobs available to the market. If you tax the middle class more, there will be fewer jobs available, and people will spend less, which means lower tax revenues to the government. Any time the government raises taxes, gov't revenue goes down, not up. Google it!

Here's another scenario: Take a guy who is making, say 5 million a year. Never mind the fact that he may have earned it through blood, sweat, and tears, or inherited it through someone else’s blood, sweat, and tears. Now let's raise taxes on him (because he can afford it). Now that we have raised his taxes, he no longer has as much discretionary income, and he decides not to buy that 56 foot yacht that he was looking at. So now the yacht builder has one less order and he has two get rid of one or more employees. That affects those employees’ families and income, and again puts more burden on government to provide unemployment.

One of the biggest liabilities of the Progressive Tax system is the creation of a "Zero Liability Voter". These are voters that receive more tax return money, and more value from benefits than they pay into the system. These people who basically do not contribute, now that power over the contributor to vote for politicians that will raise taxes more on the contributors, and give more to the non-contributors. This is Wealth Redistribution at its finest!!

Look at it this way: Can you imagine if Jesus told people that if they made one amount, they should tithe 10%, but if they made another amount, they should tithe 20%? Where is the equality in that? In America, we believe that all Men (and Women) are created equal. So why do we tax them differently? Are we saying that we expect less from certain people. How is that equality?

Think about this: Have you ever accepted a job from poor person? Rich people create jobs. If want to see that as evil, then you basically want us all to be equally miserable.

So what is the answer to all of this? I thought you'd never ask!! It is much more simple that you would imagine...

The Fair Tax

Imagine this: every single tax payer in America paying the same tax amount. Everyone having equal liability and benefits from the system. Everyone sharing the responsibility of government. Equality. The key word here is responsibility. Can you imagine a place that would demand the same output from everyone? How would the politicians then divide us up and get us to vote against each other? Talk about utopia!

So how would it work? Very easy... all extra taxes are eliminated, and you pay one flat rate across the board. All extra taxes are eliminated. The death tax, property tax, school tax, sales tax, etc... (the list goes on and on and on)

Now everyone is truly equal. They are no longer punished or penalized by being successful. The sky is the limit! Everyone becomes more productive, government revenue increases, the value of the dollar goes up, the economy booms, and everyone is happy. The end.

To learn more about the Fair Tax, please click here to go to their official website.

The term "Zero Liability Voter" was borrowed from Andrew Wilkow, the next generation of great talk radio. You can visit his site here.