Tax the poor!

It is so tiresome to hear the class-based arguments about taxation. Tax the Rich! The Government Must Have More Money!! There are how many rich people? Well, we don’t know exactly. We don’t even know how to define “rich.”

But the poor! We know how many there are of those! Yep. It’s all of the people supporting those advising Congress to Tax the Rich. Let’s say that out of 310 million population, 7 million are Rich. That leaves 303 million people we can tax.

To get rid of $1 trillion in the national deficit, it would only cost about $3,300! Most taxpayers pay that much already, so only the 50% or so of the U.S. population that doesn’t pay any taxes at all would need to contribute their fair share. The rest would get a tax cut.

Wikipedia reports: “The number of U.S. households with a net worth of $1 million or more, not including first homes, fell by 2.5 million to 6.7 million in 2008, according to the Spectrum Group report, as reported by Reuters.”

If we confiscated all of their wealth, we’d get $6.7 trillion. Great for a one-time gain, but then it would be gone. No more rich people. No more bailing out the government and its czars, departments, agencies, authorities and commissions.

All humor aside, the real question, as Sen. Charles Schumer correctly points out, is “What is the proper role of government?” If we don’t answer that question correctly, we can just forget having a decent future. Rush Limbaugh quoted Sen. Schumer today:

SCHUMER: The president’s speech has framed a debate that will rage long after we resolve the debt ceiling. … It is a quite a different debate than the one we will finish up today. The one to come has much higher stakes. The debate ahead of us is about the role of government itself. It will be one of the seminal debates in the first quarter of this new century and will determine what America is like.

Sen. Schumer has NO IDEA how accurate that assessment is. For historical examples, look at the history of the last century, when governments attempted to plan their entire economy, dictate all production, educate a select few in the finest schools and the rest in gray concrete training centers, parcel out scarce medical care, and ended up watching their economies swirl down the drain as the U.S. prospered.

That’s changed. With Bush Bailouts, Obama Stimulus and nationalizations, and a declining economy, pushback has started.

Madison, Wisconsin is just the beginning.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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