Saturday, November 21, 2009

Remedial Economics and Government …

The government is funded by taking money from productive taxpayers. The more money productive people make the more money the government has to operate. If the people that create tax law knew anything about economics they would use the same model business people use to create revenue for their businesses.

Instead we have politicians that are economically ignorant and continue to target “rich” people and small business owners to fund their largesse. It is a formula that is unsustainable. There comes a point and we are there right now, that people that are productive choose to stop making more money. They reduce productivity because the tax policies make it uninviting to increase revenue.

Here is a simple example. If my taxes are currently 36% of income, and I make $150,000, and if I choose to work harder, and the government decides at $200,000 I am “rich”, and they are going to tax me 60%, why would I work harder for less money? What I do is stop at $199,999 and go on vacation. This is just a simple example to make a point but the reality is the federal government is creating an environment that is encouraging business to stop producing wealth.

If politicians really wanted to increase tax receipts to the government coffers they would only have to follow a few basic principles, and they would achieve not only additional tax revenue but actually mend the economy. By simply reducing tax rates to encourage business to make more money they will improve revenue and the economy. By simply implementing a flat tax as a percentage of income they would improve tax revenue and the economy. Reducing the federal debt by simply putting a freeze on government spending, would increase confidence in the markets and improve the economy.

But this will never happen because it is not about improving anyone’s lives in this government except their own. The people in government today are the greediest, most selfish individuals the world has ever known. They are power hungry and dangerous. They are the greatest enemy to the poor even though they claim to be trying to help them. They are a disgrace to this country and themselves. There isn’t an ounce of good in any of them. Seems harsh but if there was any good in them they would be arguing for adherence to our constitution.

Redistribution of wealth only ends wealth. It does not help anyone, it hurts the most vulnerable. Socialism is immoral because it steals the labor and property from one and gives it to others. More importantly it destroys the reason for people to be productive. Socialism goes against the basic tenants of human nature. And this is what the current administration and politicians are pursuing while breaking the laws of our constitution.

Our economy will only improve when we remember the simple principle our founders penned in our founding documents; limited government, liberty, and a moral foundation. Right now we have a overreaching out of control central government, we are losing our freedom with every bill that is passed by these power hungry politicians, and we have allowed for an assault on our founding faith while we tolerate and celebrate a religion that is trying to dominate the world and take us back to the Stone Age.

Everything is out of control because they have drifted from our guiding principles. They are digging a deeper hole, they are putting good money after bad, and they are destroying this nation while we wonder; what we can do about it? What can you do? Get involved, get worked up, get active and think about what our founders did. Did they sit by and allow their colonies to be destroyed by an out of control central government? The lessons of history are clear. It is time to get back to our roots.

The recipe is simple, get informed and take back your government. We have ignored it for too long. They work for us; we need to fire them…

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