Tuesday, December 14, 2010

The Bogus Argument That Defines The Parties

If there is one point above all others that is the defining factor of the political parties in America, it's TAXES - and who should pay them.

But the entire argument is bogus from the start.

Democrats say the choice is to either increase taxes on the rich OR we have to increase the taxes on the middle class. They make it class warfare. They gain power by creating division among us.

Republicans say the choice is to either keep spending, which requires a tax hike on someone, or cut spending which allows everyone to save on taxes.

In short, the Democrats say "Yeah, we're spending too much, so we need more tax revenue to pay for it", and the Republicans are saying, "Yeah, we're spending too much so we need to stop the spending and ferret out the waste."

They both agree we are spending too much. But the difference is NOT taxes. It's whether we maintain the spending or cut it. That is the real choice here. It has nothing to do with taxes - taxes are only the result of the choice that is made.

Common sense tells us which is right.

If we cut spending and cut out the waste, we can actually lower taxes for all. But we can make it even better for America if we would do another common sense thing - make everyone - regardless of income - pay at least something into the system. By making some people exempt from taxes (so far it's 47% of all citizens) you make it easy for them to vote for more entitlements because THEY will not be paying for them. And that is why we are in fiscal jeopardy.

There is not a single working person in America who cannot afford to pay a minimum alternative tax of 5%. In America, more than 80% of the poor own TV's, cars, computers and cellphones. There is no reason they cannot contribute to the nation's needs. They use the roads, bridges, airports. They benefit from the military, police and firefighters. They really need to be a part of it. We all need to be vested in America.

If the 47% of workers that currently pay no taxes were to pay 5%, the tax rate for the middle class could drop from 28% to 17%. Now that sounds a lot more fair than the current system that places the so-called poor (the ones with computers and cellphones) on the backs of the middle class.

And please do not say that because I am wealthy I don't understand the poor - it was not that long ago that my wife and I met while living in a homeless shelter. I know about being poor - real poor! Homeless poor. But even then I could have afforded to pay something.

As for the wealthy - the top 5% of income earners already pay 80% of all taxes. That's enough. And if we cut spending, it would be more than enough.

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