The Problem with Taxing The Rich Pigs
May 15, 2011 § Leave a comment
When the U.S. Congress passed an 850 billion dollar bill extending for two years the Bush-era tax cuts in late 2010 we heard from opponents that if only the rich corporations and businessmen would pay more taxes, then everything would be better for the rest of us. The logic behind such rhetoric being that they have so much money they should give up more of it to the society that helped them make it in the first place. It is also a way, they say, to reduce income inequality while ignoring the impact that government interference has in the economy and its role in exacerbating the income gap. If the Congress had not passed the tax cut extensions rich people would have moved to other jurisdictions with lower tax rates such as Monaco or the Bahamas. While corporations and other businesses do similar things, for them there is an even simpler way of dodging any tax hikes.
They raise prices to recoup their losses. So, who actually ends up paying for the government’s theft of yet more money?
Of course, it’s not this simple to be sure as there are many more factors involved, but the truth remains that individuals, not groups, pay all taxes at the end of the day. How then do we rectify the situation? Eliminating all income taxes would not only solve this problem but all save us all hours of paperwork and end the need for such a vast tax bureaucracy. Sales taxes could supply a very reasonable amount of revenue if government were to keep its spending in check. This would make the system simpler, fairer, and make everyone happier.
And so we cover all the main points, to those rich people who complain that they don’t pay enough taxes and that, correctly, their poorer employees pay a larger percent in taxes than they do the solution is simple. They can donate to the government whatever sum of money makes them sleep better at night. It would be good for them to start by giving the U.S. Treasury money to pay down the national debt.