Wednesday was a busy day on Capitol Hill. In the President’s first press conference of his second four-year term, he made clear that tax hikes were still his primary method to cut the deficit and deal with the near-approaching fiscal cliff. In our view, raising taxes for the wealthy is essentially passing a death sentence on the economy. In addition to being destructive to our economy it is also unconstitutional.
The President also said he was open to new ideas: “With respect to the tax rates, I just want to emphasize I am open to new ideas. If Republican counterparts or some Democrats have a great idea for us to raise revenue, maintain progressivity, make sure the middle class isn’t getting hit, reduces our deficit, encourages growth, I’m not going to just slam the door in their face. I want to hear ideas from everybody.” (White House)
“We could go back into recession. It would be a bad thing,” (Financial Post) Obama said, referring to the scenario where the right and left fail to agree on the “fiscal cliff” solution by the January 1st deadline.
President Obama insists others join his campaign pledge to increase the burden on high-income earners while letting substantial tax deductions continue for the middle class.
With about seven weeks before January 1st, a compromise must be met or, major tax hikes on the wealthy will soon come into effect.
Lying and Stealing
“A modest tax increase on the wealthy is not going to break their backs,” President Obama said of the nation’s high income earners… “They’ll still be wealthy,”. (CBS News)
Taxing the wealthy because “they can afford it” is a lie because the government doesn’t know their circumstances.
Let’s look at “lying”. The assumption that “they can afford it” is in numerous cases, a lie, because many wealthy people can’t afford what others think they can. If you live in a high-cost area like New York, face college tuition bills for yourself and children, have your own debt to pay off, and provide for 5 kids who are still at home, you may not have as much “spare change” as the government presumes.
Even if a person has a million dollars relaxing in their dresser drawer, what gives the government the right to steal it?
“No state shall make or enforce any law, which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny any person within its jurisdiction the equal protection of the laws.” – 14th Amendment
Did you know that your money is actually your money? That it is your property? That you earned it, therefore, you are responsible for it. You have the responsibility and liberty to pay your bills, save money for your children, give to your church, give to charities, and do the other things you desire.
Giving to the Needy
The government’s responsibility is to protect, not provide. Helping people, giving, and sharing are wonderful and necessary. These privileges and duties are to be done through the Church and through individuals, not a government entity. I am not diminishing the severity of the needs but, the method to meet that need is wrong. Stealing from the rich is just as evil as stealing from the poor. Justifying the means by the end result is wrong. The question should not be “Will this method work?” the question should be “Is this method right?”. Increasing taxes for the the wealthy is not right. To be blunt, this method won’t work, even if it was right. The “share the wealth, tax the rich more” concept is a warning flag. It is a caution sign to Socialism which has an ultimate destination of Communism. This isn’t “doom and gloom” hype. This is the reality of evil that is presenting itself to the wonderful United States of America. Thousands have given their lives to protect the unparalleled and magnificent freedoms America enjoys today and many desire to take those freedoms away.
“The worker deserves his wages”. It isn’t the government that deserve the workers wages. Hard working Americans work to provide for themselves and their families, not the government’s self-inflicted needs.
My friends, please think of it this way. You own a farm. A big farm. You have 1,000 cattle on your farm. You’ve worked on this farm since you were 14 years old and have spent countless hours feeding your cattle, taking care of the lawn, milking cows, and dealing with vendors. Many days you have to miss dinner because of your long work hours and you hope you could have moretime to be with your wife and children. You have 1,000 cattle on your farm. The country in which you live has a large deficit because of wasteful spending and poor stewardship. There are also many people with less cattle than you. Therefore, the government wants your cattle. They need help fixing their problems and they don’t want your farm to get too much bigger than the other farms so, they pass a law saying they can take 40% of your cattle. I know this sounds ridiculous, immoral, unethical, and a little far fetched but, what is the difference? Maybe we have heard the term “raising taxes” so many times that our ears and hearts are numb to the subject but, this is what is happening. When you legalize theft for your party’s benefit, there is a problem.
Who are the rich?
Taxing the rich… who is the rich? Is it individuals who earn more than $200,000/year? Is it families that earn more than $250,000/year?
Taxing those with more money than others, blaming them and their corporations for America’s problems, is an immature response to the current economic crises.Let’s take a few steps back and consider this. Isn’t every American rich? Even if you don’t have enough for that new BMW, aren’t you rich? I’ve had the privilege of being overseas a few times, and I can tell you, we are a “rich” nation.
What is the logic behind not increasing taxes?
Who owns the businesses of America? The wealthy.
Therefore, who provides jobs? The wealthy.
If the wealthy are required to pay more in taxes, decreasing their yearly net revenue, they will have less money to hire employees.
Not only will their hands be bound when it comes to hiring but, they will have to let some employees go too. The unemployment rate recently found itself below 8%. It cannot stay there for long if the wealthy are taxed more. Unemployment could easily be up to 10% within a few years . More people could be out of work which means, more people would be collected unemployment, which means the government’s net revenue would be decreasing. Not to mention more people on welfare, resulting in the government paying more money. If this happens, will they tax the rich more and add fuel to this disaster cycle?
When we hear something on the media, it is easy to receive it as fact and ignore common sense. Let’s apply common sense and think about what we hear before we agree with it.
An underlying purpose in government increasing the wealthy’s taxes can be government control. If the government taxes the wealthy more, they are pushing down business and exalting government. With more tax dollars, government can become a big sugar daddy who gives everybody what they want, including “Obama Phones” (free cell phones). Many ignorant people then may fall in love with the government’s “kindness” which is actually a pathway to bondage, socialism, and eventually communism, unless it is stopped. The government’s God given responsibility is not to provide for people, it is to protect people. We need government, we need laws, we need jails, but we do not need a sugar daddy institution that gives us whatever we want; food, cell phones, houses, give me a break. Obama said this in August, 2012: “Do we go forward towards a new vision of an America in which prosperity is shared, or do we go backward to the same policies that got us into this mess in the first place?” (White House). If we would be wise enough to take a look at history and see what propelled America to greatness, we would see that one main factor was the limited government. The reason America was established was to be free from the government of England and their religious constraints.
What is the solution?
Is it necessary to raise taxes? Honestly, all bias aside.
In the realm of finances, an important principle to understand and practice is “Measure vs. Management”. How much money someone makes, usually doesn’t make or break them. It is how they handle that money. Their measure of income is less important than their management of that income. That is why up to 80% of lottery winners in America file bankruptcy within five years.
With printing presses available to them, I don’t think that the “measure” is the problem. It is the “management” of that measure of income that is the real issue.
Spending cuts are a non-negotiable. We absolutely need to implement spending cuts. It is possible that spending cuts alone could solve our problem. I say this because of research on wasteful government spending.
Let’s just throw a few more billion per/month into QE3 and use that money? The Fed is already talking about adding to it it’s Quantitative Easing initiative according to Wednesday’s FOMC Minutes statements.
I say the last statement sarcastically since QE3, in a broad view, is likely to hurt not help the U.S. Economy.
One example of wasteful spending can be found in Senator Tom Coburn’s report on wasteful spending in the Pentagon. His report identifies at least $67.9 billion of potential savings in the Department t of Defense, over the next decade.
Visit this link for more examples of wasteful spending, supporting the point that we do not need tax hikes. You’ll find everything from an Indian TV show to cupcakes and a robotic squirrel.
Fiscal Cliff, fast approaching
If we don’t understand what is happening in our country and it’s economy, we are destined to lose everything we have, all we have worked for for the past 200+ years. “People perish for lack of knowledge.”
January 1st, 2013 will be a pivotal day for the future of the U.S. Economy. The negative effects of the upcoming fiscal cliff could be felt by our children, grandchildren, and great grandchildren in the decades to come.
Winner’s Edge Trading, as seen on: