A favorite mantra (or is it a chant?) of liberals is that tax cuts cause deficits and are evil and tax increases are noble, virtuous, and pure. Both notions are a bunch of gobbledygook hogwash.
The Biden administration fresh off the $1.9 trillion non-relief COVID relief package is about to hike taxes to pay for a round of infrastructure and wasteful climate change spending.
Biden’s White House has said tax increases are definitely on the table and they claim they are targeting wealthy individuals and corporations to pay more.
“His priority and focus has always been on people paying their fair share and also focusing on corporations that may not be paying their fair share, either,” White House press secretary “One time, at band camp girl,” Jen Psaki said. “So that remains his overarching approach, but there isn’t a package yet where we’re talking about pay-fors yet.”
Biden and his people are as annoyingly obtuse. Did they not see the numbers under Trump?
Here’s the thing. Numbers do not lie unless manipulated by liars. It can be proven by real numbers that tax increases always lower government revenues while tax cuts always increase government revenues. It’s counterintuitive, but it is true. The Democrats know this, but they hike taxes anyway because it allows them to virtue signal to the great unwashed that they are sticking it to the rich and they use the tax code to control people’s behaviors as good little dictators tend to do.
First off, this notion that the rich need to “pay their fair share” I consider an evil manipulation because according to IRS data the wealthiest wage earners already pay their fair share and then some. The latest numbers provided by the IRS show the top 1 percent of wage earners paid 37.2 percent of the entire federal income tax burden. The top 5 percent of wage earners paid 58.23 percent, over half of the entire federal income tax burden. The top 10 percent of wage earners paid 69.47 percent and the top 50 percent of wage earners paid 96.96 percent of the federal income tax burden. That leaves the bottom 50 percent of wage earners paying only 3.04 percent, and they are the ones who use most of the government services paid for by the rest of us. So now you know that the next time a Democrat says they want the rich to pay their fair share you know they are lying to you because when 5 percent of any group pays almost 70 percent of the costs they are absolutely paying their fair share.
Joe Biden is saying that he wants to raise taxes only on people earning $400,000 a year or more, those evil rich, greedy ba$tard$, right?
Looking at it another way, people who earn $400,000 a year are mostly small business owners who were hit very hard economically in 2020 with lockdowns as designed by Democrats to take away a major funding source for Republican candidates. It’s known that Republicans dominate in campaign donations from small businesses because they support small businesses while Democrats attack them with taxes and regulations out the wazoo. I have no idea where the wazoo is, but I hear that taxes and regulations pour from it like an out-of-control fire hydrant as far as small businesses are concerned.
Biden campaigned on increasing the corporate tax from 21 percent to 28 percent and the individual rate from 37 percent to 39.6 percent. On top of that, he wants to raise the capital gains tax rate on people who earn more than a million dollars a year. And trust me, eventually, those tax increases will hit you, the great unwashed as the virtue signaling done now is just to get you used to tax rates being increased.
Here’s the thing. Biden and the Democrats in Congress are trying to convince you that raising taxes will help them generate more revenue to pay for all of the things that you are probably never going to benefit from anyway, but it’s a total lie. If the government needs to raise its revenue the best way to do that is by cutting taxes. Cutting taxes has worked every single time it has been tried. Okay, so when was it tried you ask?
“The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny. Under this republic the rewards of industry belong to those who earn them. The only constitutional tax is the tax which ministers to public necessity. The property of the country belongs to the people of the country. Their title is absolute.”
Sounds a lot like Trump doesn’t it?
Anyway, Coolidge got tax rates lowered from 77 percent eventually to 25 percent lower than Reagan’s 28 percent. Lowering tax rates started under his boss President William Harding until his death when Coolidge became president.
The net effect of lower taxes created an economic boom the likes of which hadn’t been seen before. In fact, our economy became so strong they nicknamed the time period “The Roaring Twenties.” Along with the roaring economy, government revenues increased every year.
By the time Coolidge left office, the national debt was lowered to $16.9 billion in 1929 from $22.3 billion in 1923, and the Federal Budget was reduced to $3.3 billion in 1929 from $5.1 billion in 1921.
Okay, but that was just an outlier, right? Wrong.
In January 1963, President Kennedy presented Congress with a tax proposal to reduce the top marginal tax rate from 91 percent to 65 percent and to cut the corporate tax rate from 52 percent to 47 percent. Kennedy was assassinated before Congress voted on his budget. Out of respect for his death, Congress voted nearly unanimously for the bill. Even Soviet-loving Marxists like Ted Kennedy, Howard Metzenbaum and Al Gore voted for it. And the result was the economic boom that followed and government revenues increased.
President Ronald Reagan lowered tax rates from 70 percent to 28 percent. Federal revenues under the new rates sadly went down. No, I’m just kidding. Government revenues more than doubled going from $500 billion in 1980 to $1.2 trillion by 1990, about 50 percent higher when you account for inflation.
The examples don’t stop there.
When President George W Bush cut taxes it created the largest economic expansion ever. Sadly, his economy went south after the 30+ year Democrat-created Housing Market scam finally crashed the economy, but the tax cuts increased government revenues.
The same happened under President Donald Trump when he cut tax rates giving us the largest economic expansion and the greatest economy we ever saw. Government revenues again went up.
How is this so? To the average dopey liberal this doesn’t make sense. You lower the tax rates and the government gets more money?
It’s very easy to understand and it all goes back to screwing the rich. When the government raises taxes rich people who understand money will find other ways of either investing to earn money or hiding it until better times. For example, when taxes are at 70 percent while Democrats are salivating at the screw job they’re doing to America, a wealthy person sees it as he has to give the government 70 cents on every dollar he earns and only gets to keep 30 cents. To the wealthy guy that’s not worth the efforts of starting and running a business. Why go to the trouble of starting a business when the government is going to steal well over half of what you make? Instead, he’ll invest his money into something like tax-free municipal bonds like the Kennedys do until better tax rates come along. When the rich guy isn’t investing his money into a business that means there are no new jobs for employees who would be hired to help run the business. No job means no income tax revenue for the government.
But, if the rates were reversed and the wealthy guy gets to keep 70 cents for every dollar he earns and only has to pay 30 cents to the government he’s going to see that as an opportunity to invest his money to start a new business. His business may be such a big idea that he can’t run it all by himself, so he hires employees to work there. Every new employee earning a paycheck will now pay income taxes on his earnings and government revenues go up because of it.
“BUT THE DEFICITS!” scream the liberals. Tax cuts do not cause deficits. In fact, tax cuts have nothing to do with deficits. Websters defines a deficit as spending more than you earn. We’ve already seen that tax cuts counterintuitively increase government revenues, so when deficits arise during times of private sector economic prosperity by cutting taxes it’s because the swamp rats in DC outspent even the rising revenues. Think about it this way. If you have a box and you place a dollar inside that box, that’s called saving. If someone comes along who sells candy bars and you ask the guy how much for one and he says $1. You open up your box and take out the dollar that you put in there and you give it to the guy who then hands you the candy bar. That’s called spending. But what if you didn’t put the dollar in the box? When the guy comes by with candy bars you have nothing in the box to buy any candy. Did not having the dollar in the box affect spending in any way? Of course not, because you didn’t spend anything. The problem is we have the most thieving people in the world running the country now and what they would do is buy a thousand candy bars with only $1 in the box and tell the guy they pay for the other candy bars later. That created a deficit of $999.00 because they spent more than what they had in the box. Democrats and liberals do not understand this very simple example.
That phenomenon of tax cuts causing government revenues to go up also has the added benefit of the private sector growing and expanding and that causes the unemployment rate to drop and pretty much everything gets better for the American worker and the American family. Conservatives like Trump understand this and they make it a priority to help the American working class. Democrats on the other hand either do not understand this common-sense thinking of the economy or they do but would much rather prioritize government control over the people instead of helping the American working class do better for themselves. Joe Biden has chosen government control over helping the American working class.