Why Oppose Tax Cuts?

by Colonel Dan


The Cowboy Chronicle

March  2008  


We’ve heard it from far too many politicians whenever there’s even a hint at cutting taxes…be it through campaign rhetoric or routine debate, “How will we pay for it?”  The “it” being anything they want to spend your money on that benefits them and their pet earmarks.   They publicly scream as if the money will be taken away from widows and orphans if even a 1% cut is proposed.  (Did you ever notice how they say they can’t do with even a fraction less but when they want to increase taxes, there’s never any mention about how you will do with less?)

We know you can’t take anything whatsoever at face value that comes out of Washington so what are the facts regarding tax cuts and why so many politicians scream bloody murder at its mention?

The historical facts are that every time taxes were cut, tax revenue actually increased and America prospered!   It happened when Kennedy cut taxes, it happened when Reagan cut taxes and it happened when Bush 43 cut taxes.  How is this possible Colonel?

The truth is really simple and doesn’t require a PhD in economic theory to explain.  When investors have more money (capital) to invest because they don’t have to send it to Washington , they invest it!  And what does this mean?  When more capital is available for investment, American industry can expand, more people are required to do the increased work, which means more jobs which means more taxes are being collected from a greater number of people albeit at a lower rate.   In a higher tax environment, less capital is available for investment which means less economic expansion and yes fewer jobs which means fewer people are paying taxes.  Brilliantly simple isn’t it?  

Think about it this way, would you rather have 50 cents each from 100 people or 25 cents each from 1000 people?  The former is an example of higher tax rates from a smaller number of folks because the capital just isn’t there to create jobs i.e. more taxpayers.  The latter is an example of lower tax rates from a larger number of folks who are now working because more capital is available and the economy is expanding.  At the higher rate of 50 cents per person, you collect a total of $50.  In the latter example of the lower rate, you collect a total of $250 at 25 cents per person.  More capital is available for investment, which means more profit, more jobs and more taxpayers.  This is not rocket science.

Another thing that irritates me is when liberal politicians say that instead of cutting taxes, they want to increase them on those “rich capitalists.”  Well who in blazes do they think creates the jobs and expands the American economy?  Has anyone ever gotten a job from a poor or financially defunct business?  It takes economic expansion to create jobs in America .  As Calvin Coolidge said, “The business of America is business” and so it is.     

The liberals of both parties know this tax effect on our overall prosperity very well so why in the world do they oppose tax cuts even though it’s been proven over decades that tax cuts increase tax revenue?  When you want to know why politicians do most anything, look at two self-centered factors and you’ll have you’re answer—power and control.  How do taxes affect their power and control?

The MORE money people have in their own pockets, the LESS dependant they are on government…or anyone else for that matter.  The LESS money they have, the MORE dependant they are on government.  The more dependent folks are on government and its “social programs”; the more power politicians accumulate unto themselves and the more control they have over us.   Additionally, and even more importantly in their world, politicians use the tax code to manipulate the citizenry and industry of this country.  That’s really the ultimate reason our current tax code is so abysmally complex—they’ve structured it to maintain control—granting tax favors in return for political favors and flexing their political muscle over individuals and business.  It’s because of this selfish, unquenchable appetite for power that we’ll never see the Fair Tax or a Flat Tax implemented by our current officeholders.  With either the Fair Tax or a true Flat Tax, Washington would surrender a tremendous degree of direct control and far too many in Washington are much more concerned with their own welfare than that of America —sad but true.  Does this mean we should give up pushing for tax reform?  Not by a long shot!  We’re not sheep and they’re not gods.  Keep pushing, yelling and driving toward the goal.  Extreme heat applied to a politician’s backside is the only way we’ll ever force constructive changes that will significantly benefit America .  Soldier on my friends, soldier on.  America is truly worth the effort.

Just the view from my saddle…

Contact Colonel Dan: coloneldan@bellsouth.net







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