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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (355)	10/22/2000 11:10:33 AM
From: ahhaha	Read Replies (3) \| Respond to of 24758

Actually I had always thought the reasoning behind a graduated tax was to provide a break for lower income earners Definitely not. This would be Robin Hood, redistribution, and even the proponents of graduated tax rate don't want to admit this. It also has a fatal flaw. It assumes there is a fixed quantity of money that must come from the taxed. The thinking then proceeds along lines of worthiness and ability to pay. The assumption is that the more you make, the more able you are to pay more. When Congress first created the income tax in 1913 it was never intended to be a social tool to achieve some vague notion of economic fairness. This changed when the depression put the socialists into power for 50 years. They launched the war on wealth whose secret agenda is the communist ideal. The result has been that all income groups saw their income tax rates rise and ironically, the lower half has been hurt disproportionately. Through the liberal control the masses demanded ever more in graduated tax in what they thought would be a way to reduce the taxes paid by the lower half. It never happened until Reagan briefly held the line on tax increases. The budget deficit and the surplus was created by two factors: taxes on the top 1% and reductions of military spending. The deficit was caused mostly by government programs which provide $1 of value for every $100 spent. The programs are an attempt to do good. Doing good is extremely expensive. There's a limit to how much the top 1% will pay, but the programs created a juggernaut whose costs kept escalating. The socialists had to start increasing the tax rates of the middle and lower classes in order to pay for them. So the redistribution was mostly from middle and lower to middle and lower. When the top 1% have their marginal rates decreased they pay more in taxes. This is called Voodoo Economics and it is well-known that it's false even though it's true. Not all of the Reagan tax cuts were scuttled by the reinstatement of fairness. The residue has been able to move the country to surplus. Why would the socialists insist something is false when it's beneficial for everyone? Hegira. Holy War. Holy war on wealth. Your wealth is bad so I will steal it from you because you stole it from me. You stole it from me because everything in country is owned by all of us. This is communistic thinking. This kind of thinking which is at the root of your friend's comment, leads to stagflation. No matter what Americans do their primary economic motivation for action is to attack the rich. They look at someone like Gates and they say, "he can afford to be stripped of a $billion. It won't hurt him. But look at all the suffering masses. We can take that money and help them." The outcome is the government uses the money to set up a program to benefit some arbitrary group which has been designated as "needy". The people in this group suddenly stop whatever they're doing and start getting the government hand out. The hand out is like a drug. It gets them hooked so that they lose the ability to do what they were formerly doing. Then they can't survive at all without the next fix. Those who punished Gates never see any of this. They see what they want to see. They see what's in their minds and that is that money solves all problems. They're sure that's the way it works, but it rarely works that way for them and it rarely works that way at the macro economic level. When you pay taxes much of it goes to do evil to society.