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Perplexing Tax Theory

Posted by P.J. on August 30, 2009 at 9:43 PM

I guarantee as we head into the 2010 election cycle my opponents are going to ask how I expect government to pay for tax cuts. This, as it has for many years now, will have me scratching my head in confusion. My confusion, and I guess my question is, "when did letting Californians and Americans keep their own money become a cost for government?" Think about it, they are making it sound as if the government is having to pay THE PEOPLE their own money.

 

Please help me out here, am I out of touch, am I not educated enough, is this concept really that confusing or difficult? In case you haven't caught on yet, some of my biggest priorities when elected will be tax reductions and reducing government waste. I'm over our government in California wanting to tax more and more, while they spend more and more. We will hear time and time again as the election gets closer that we need to tax the top percentage of earners, we need to tax big business....WHY?! Why would we tax successful people, successful businesses?  Why would anyone then want to succeed then?

 

All raising taxes will do is continue to keep California as one of the highest taxed states, continue to kill jobs, continue to drive businesses out of the state, and continue to assist our unemployment numbers to go higher.

 

Let me give you a few points to think about and then I will get off of my soap box (for now at least!):

  1. If person A were to make $50,000 a year and be taxed at a 10% rate, they would be putting in $5,000 to fund government operations. If person B were to make $500,000 a year and be taxed at that same rate of 10%, they would be contributing $50,000 to fund government operations. So who is contributing more money to government operations? Why does this get so complicated for some? Why in the world would the percentage need to go up for higher earners? They are already giving more! My 4 year old son can figure that out, why can't these folks in Sacramento and Washington D.C.???
  2. Businesses don't pay taxes. As politicians want to continue and punish businesses for success, what exactly happens. Answer - The taxes imposed on businesses as punishment get paid in 3 ways: 1) The cost is passed on to the consumer through higher prices 2) The cost is passed on to employees through lower wages and decreased benefits 3) The cost is passed on to share holders through decreased revenues.

Bottom line is that taxes continue to drown our economy. If you're like me, you are OVER EXCESSIVE TAXES!!! I am definitely fired up and it will just become more apparent as we through the 2010 election cycle.

 

Categories: Taxes

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