|Posted by Michael Judson on February 4, 2013 at 2:50 AM|
On February 3rd our great leader (insert sarcasm here) has called for closing tax loopholes. This is exactly what Speaker of the House Boehner called for during the fiscal negotiations. President O demanded that we raise tax rates instead. Now Obama wants to close loopholes on top of the tax rate increase. No matter how you look at it this amounts to a tax increase. Any tax increase will take monies out of the private sector and give them to the government. We have all seen the waste in government programs. The government mismanages everything they put their hand in. It is so easy to spend someone else’s money. We have heard it before, “This tax will not affect the middle class.” Do we still believe that?
Whether you want to call it supply side economics or Reaganomics, the process of letting people keep there own money has been shown to stimulate the economy. Thnk about it. If you work for a business owner that makes one million dollars after taxes and the government closes loopholes that in turn lower his income to eight hundred thousand a year his lifestyle will not change. He will still take vacations with his family; he will still drive a new car, and he will still contribute to his retirement accounts. So what will change? The people who work for him will have to make sacrifices, whether it comes in layoffs, additional contributions to medical insurance or elimination of 401k matches. The bottom line is when ever money comes out of the private sector and goes to the public sector it is the working class people who suffer.
By allowing corporations to keep more of their money essentially stops them from outsourcing a lot of their jobs. You read everyday about companies closing and moving overseas. You can not blame these companies or their stockholders. These companies are in the business in making money and if you punish their success they will find a new way to turn a profit.
This doesn’t seam to difficult but our elected officials can not get it right. I feel that a lot of the reason that politicians can not figure it out is because as soon as they get elected, their primary focus turns to getting re-elected. That brings me to my next issue… look for it later in the week… term limits