By Dick McDonald
The Right Scale
In a tease to an IRS editorial article , the NYT states:
“Tax policy during the Bush years has greatly favored rich taxpayers at the ultimate expense of the poor.”
The tragedy of this statement is that it is repeated so often by Democrats and left-wing socialists in the MSM that even those who know better let the propagandists slide. Why dispute a leftist myth so ingrained in our literature and dialogue as to be the bedrock used to sway people to vote for Democrats. Strange thing is that most people in America are not “rich”. The “rich” are in the minority. So how is it that Republicans can get elected at all?
The answer to that question is just plain logic. Most citizens have come to realize that the rich have all the money they need. They really don’t need a tax cut. The poor need for the “rich” to get a tax cut. That’s right, the poor need the rich to get a tax cut so they will take that extra money and invest it the economy to make more and better jobs for “poor people”.
Poor people get hammered when government raises taxes. You see that means the rich don’t have the money to invest and grow jobs and the economy. As a result,the first casualties of tax increases are the poor. This simple fact has come home to the vast majority of Americans who have seen their lives improve during “tax-cutting” administrations. Instinctively, if not rationally they have come to realize the left’s mantra “at the expense of the poor” is purely that; a mantra of empty logic.
When citizens are freed from the socialist myth that government is the answer, the economy can soar. Government does not make money when people pay higher taxes, the government never makes money; it merely redistributes it in accordance with the prevailing opinions of special interest groups. Now if money is invested in the economy rather in the government, real growth and return is realized; and the socialist promise of full employment is attained by capitalism. By virtue of the constant job destruction and creation in our economy, 6% unemployment is considered “full employment”. Today it hovers around 4.9%.
The disaster of socialism in the last century is coming home to roost. Our Democrat lawmakers have promised more than they can deliver. They have triumphantly taken over 15% of the wages of all Americans for each’s person’s working life and spent or promised 20% upon retirement. As a result today we have a $13 Trillion unfunded liability to Social Security and Medicare and a $5 Trillion unfunded liability to city, county and state employees. Add to that the government guarantee of private pension which capsize and you begin to get the picture. Remember all the whining about our national debt; well folks, that is only $4.6 Trillion; not $20 Trillion.
The answer to this dilemma is being stonewalled by the left; simply because Democrats will lose their power to demagogue the poverty issue. You see privatization will take that 15% out of the government’s hands and invest it for each American in a growth fund. By virtue of the magic of compounding, even the poor will become wealthy after a 40-year working life. But the Democrats say we can’t have that, the poor made wealthy? What could be a more disastrous scenario for those donkeys. See www.thenewsocialsecurity.com for some real answers.