Here's a stark question that will face American voters in 2020:
Which is more important to you?
a.) Taking the rich and large businesses down with higher taxes in the name of fairness.
b.) Having an economy with low unemployment, higher wages and continuing economic growth.
This is a question that many don't understand America to be facing, but we are. The Democrat candidates for president in 2020 have basically all opted to choose item a.) in answer to the question. President Trump chose item b.) when he came into office and has stayed with that choice. The Democrats promise all sorts of goodies; we get free college tuition, free medical care, free everything basically. And how do we pay for all this free stuff? Their answer is simple: tax the rich. No longer are the income taxes enough. Candidates like Warren and Buttigieg and others are pushing a wealth tax. That tax doesn't depend on how much you earn. Nope, you get taxed on how much you have. The best analogy is that a wealth tax is like having a federal property tax. Do you own a home? The feds are going to tax it. Do you own a car? The feds are going to tax it. Do you have savings that you put away for retirement? The feds are going to tax it. Do you own a farm or a small business? The feds are going to tax it.
Out country has grown into the world's largest economy as a result of centuries of investment. Investment is the force that drives our economy. Someone comes up with an idea for a product. In order to build that product, however, the idea is not sufficient. In order to build the product, you need capital which you can only get through investment. Other people invest in your idea and a new company is born. That company employs workers. It produces the new product. If the idea is a good one that people like, the new company prospers and grows. More production means more employees. It also means profits. The investors share in those profits. They get paid for their contributions just as the employees get paid for their labor. Without the investments, none of this process would be possible.
The Democrats want to tax actions that would stifle new investments. These are not mere adjustments around the edges. Some plans, like the one from Bernie Sanders, would put tax rates of 70% or higher on the income from investments and then take away a chunk of the funds available for investment by throwing in a wealth tax as well. That's a recipe not for a recession but for a depression. No doubt, the Democrats answer to a depression will be that we need to raise taxes even higher on the wealthy.
America's voters better get the answer to this question correct. The future depends on it.
Which is more important to you?
a.) Taking the rich and large businesses down with higher taxes in the name of fairness.
b.) Having an economy with low unemployment, higher wages and continuing economic growth.
This is a question that many don't understand America to be facing, but we are. The Democrat candidates for president in 2020 have basically all opted to choose item a.) in answer to the question. President Trump chose item b.) when he came into office and has stayed with that choice. The Democrats promise all sorts of goodies; we get free college tuition, free medical care, free everything basically. And how do we pay for all this free stuff? Their answer is simple: tax the rich. No longer are the income taxes enough. Candidates like Warren and Buttigieg and others are pushing a wealth tax. That tax doesn't depend on how much you earn. Nope, you get taxed on how much you have. The best analogy is that a wealth tax is like having a federal property tax. Do you own a home? The feds are going to tax it. Do you own a car? The feds are going to tax it. Do you have savings that you put away for retirement? The feds are going to tax it. Do you own a farm or a small business? The feds are going to tax it.
Out country has grown into the world's largest economy as a result of centuries of investment. Investment is the force that drives our economy. Someone comes up with an idea for a product. In order to build that product, however, the idea is not sufficient. In order to build the product, you need capital which you can only get through investment. Other people invest in your idea and a new company is born. That company employs workers. It produces the new product. If the idea is a good one that people like, the new company prospers and grows. More production means more employees. It also means profits. The investors share in those profits. They get paid for their contributions just as the employees get paid for their labor. Without the investments, none of this process would be possible.
The Democrats want to tax actions that would stifle new investments. These are not mere adjustments around the edges. Some plans, like the one from Bernie Sanders, would put tax rates of 70% or higher on the income from investments and then take away a chunk of the funds available for investment by throwing in a wealth tax as well. That's a recipe not for a recession but for a depression. No doubt, the Democrats answer to a depression will be that we need to raise taxes even higher on the wealthy.
America's voters better get the answer to this question correct. The future depends on it.
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