On Facebook, I had posted this interesting article on regressive vs. progressive taxation and raising 490 billion dollars and spending it on the people; on things like infrastructure and the social safety net. One of many articles, I figured I’d get a few “Likes” and spread an idea.
But I do attract the occasional belief-based libertarian who felt that “giving it to the government” would only hurt us. As if we are better off with our 30 to 130k a year with no government services or safety nets. This is a very common Lone-Ranger fantasy among a certain sector of humans who have trouble with “Systems Thinking”.
The position is best summed up by these quotes:
• Why would you want government to have more of the public’s money?
GOVERNMENT IS US!! I shouted.
• I should have said society’s (in the private and individual sense) money. (Corporations) are freeloading with the help of the government.* Our ancestors would be ashamed if they realized we let the government tax us so much. We already have progressive income tax. Most people work 1/3 of the year for the government as it is. Raising taxes is not a solution it is the problem. Government needs to be reduced – it is a cancer and allowed to continue will kill its host.
Again, “Government is US”… but I could see it was not going anywhere. I decided to get real numbers instead of these myths that libertarians believe.
I found this BRILLIANT comparison of the United States, Denmark and Sweden. I was amazed at how our wasteful military spending and allowing our biggest profiteers to lobby away their responsibilities really steals from us all.
Is heavy taxation bad for the economy?
May 22, 2011
Taxes reduce the payoff to entrepreneurship, investment, and work effort. If taxation is too heavy, these disincentives will weaken a nation’s economy. But at what point does the harmful impact kick in? And how large is it?
Half a century ago, in 1960, taxes totaled about a quarter of GDP in Denmark, Sweden, and the United States. The tax take then began to rise in Denmark and Sweden, reaching half of GDP by the mid-1980s, where it has remained. In America it has barely budged, hovering between 25% and 30% of GDP throughout the past five decades.
I then summed up the problem with direct thinking on this subject in the comments section. Here are some highlights.
Taxes don’t prevent Growth. Taxes don’t prevent innovation.
Misuse of taxes, or bad policy… or a nation of tax cheaters… in other words, bad or corrupt use of taxes is where the problems come from. When it comes to income taxation, 19% of GDP has been the standard – and during that period we had more innovation and productivity. After 1967 we had record lows in poverty.. and we saw our first debt slavery at the end of Reagan and Under Bush where the use of our tax money was taken out of the USA and invested in Militarism and Empire.
Today the INCOME TAX aspect of taxation is at 14% an all time low since WWII.
Our economy is helped temporarily by that in that the average $2000 an American worker gets back. Our economy is driven by consumption (70%), so that money circulates via consumption. Other nations that make greater use of consumption taxes obviously don’t rely on consumption as much. For our system (not that I think our system is so great), it’s better to tax income instead of consumption.
I’ll get to our benefits (payroll taxes) presently, but let’s remember that what we want to see more of, we tax less and what we want to see less of, we tax more.
We want to see more growth? Do we want to see more economic freedom, more families in the middle class and out of poverty? Do we want to see more economic mobility (where I can change jobs and careers with no fear)? Do we want to see greater economic security – so we can take risks and try new things?
I’ll tell you one thing we want to see less of:
1. HOARDED WEALTH
2. Sending our jobs/industries/activity to countries with cheap labor/wage slavery.
Those are the two things where taxes must definitely increase.
Since World War II, “innovators” like Henry Ford (and his subsequent generations of Fords) had to pay significantly less tax if they reinvested their wealth in their industries. Today they can sit on cash. The Wal*Mart Waltons are doing just that. It’s obscene and dangerous.
We must return to taxing that “money in the mattress” … and confiscate money in “off shore accounts” that have no benefit for the USA. American Dollars are the property of The United States and are temporarily in individual’s hands. The goal is benefit to all through our system of innovation and competition.
The second one is called Tariffs. Any goods that come in from wage-slave-labor nations should be subject to a high tariff. It should be no different to buy a pair of American Shoes (there are almost none of those left) than a pair of Chinese-made shoes.
Of course, all money collected, if just given away to corporations (military or otherwise) as over-payment for things we don’t need, will not be helpful.
• The point of our payroll taxes is the best thing about taxes.
Economic security is the best thing about living here or in Denmark or Sweden … any wealthy western democracy.
No matter how sick you get in a nation that spends it’s payroll taxes correctly, you never go bankrupt during treatment.
No matter how old you get in a nation that spends it’s payroll taxes optimally, you never sink into poverty.
Not only that but we who still work and are healthy are not surrounded by disease and poverty.. we have more consumers.
That’s how our system works.
• Whoever told you that payroll taxes lead to a loss in “innovation” lied to you.
• Whoever told you that payroll taxes lead to wage slavery should not have been able to fool you with that idea at all. It’s completely illogical.
• Payroll taxes are what taxes should be all about. They are economic security. They are the wealth of our entire nation keeping your life stable.
Now… I appear to be arguing FOR our current system. I am not.
You and I might agree on this:
A huge bloated bureaucratic government and huge taxes don’t mix well.
I would like to see a move away from 60 hour work weeks… to 30… 30 extremely efficient and productive hours… with a *minimum wage of $20 (taxable) dollars per hours / $575 week/ 30k a year.
Hoarded wealth will be taxed heavily as well.. and there will be a MAXIMUM WAGE & high margins at upper levels of both income and capital gains. There are 425 billionaires in the USA right now. There might still be after my system took hold but they would have to invest it within the United States. It would have to circulate.
In my system, we start cutting down on our Pentagon/Empire expenditures… and we also admit to the secret money that is spent to that end.. both probably totaling a trillion a year… and start to dismantle our Empire.
We stop the profiteering from this system, fining and jailing anyone who whines and resists.
$500 billion of that spending becomes immediately and totally unnecessary. If we put that back into our infrastructure, cover education for all, cover health, vision and dental for all, and cover 15 weeks of paid vacation a year for all 250 million working and retired Adult Americans – now you’ll have innovation. Now you’ll have productivity.
Now you’ll have economic freedom and mobility.
Now you’ll have security… and now… you’ll stop producing endless crap that fills the ocean with plastic and skies with poison and heat.
(c) 2012 Corporations_ate_my_BABY
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