Monday, February 6, 2012

Once More - What Happens When You Tax The Rich...

OK, so a lot of uninformed Americans think we should tax the rich some more. They simply fail to understand that they are shooting themselves in the foot. Here is what really happens that the liberals do not want you to figure out...

Bill Gates says to Obama, "Sure thing, raise my taxes. That's a good thing, and I can afford it."

So Obama raises his taxes.

Gates did not get rich by being dumb, or by wasting money. So he tells his CEO to increase the cost of Microsoft products enough to cover those extra taxes. In this way, he gets to say he is a big-time taxpayer, but in reality he pays nothing - his customers do. The taxes he pays comes from money garnered from his customers. Taxes are a cost of doing business, and are factored into the prices consumers pay.

So, every time you buy a product or pay for a service, you, the consumer, end up paying all those taxes on the rich in the form of higher prices.

Because prices have risen, you must get a "cost of living" raise from your employer. You are now passing all those taxes onto your employer. But since your employer does not have a money tree out back, he must raise the prices of his products & services in order to cover his employee's raises.

Now the consumer pays even more for goods and services.

If your employer makes Ramen soup, the cost of Ramen - a staple among the poor - goes up. The poor become poorer because now THEY are paying all those taxes.

Taxes flow downhill. Always. Everyone passes them down to those below them. The only ones who cannot are the poor, because there is no one below them to pass them off to.

Bill Gates shows how he is paying the majority of taxes, and he is lauded as a hero. Meanwhile, the consumer gets hit with higher prices. And the poor become ever poorer.

The poverty rate in 1965 when LBJ began the war on poverty and boosted welfare was a whopping 15.1%. After 45 years and $16 trillion spent on welfare, the poverty rate remains at 15.1%.

We blew $16 trillion, and in the process all of that spending required an additional $16 trillion in taxes that resulted in raising prices for everything we buy. That's because that tax money must come from somewhere. The government cannot spend $16 trillion without taking that $16 trillion from the taxpayers.

In other words, exactly nothing was accomplished. Nothing, that is, except making things more expensive and creating a widening gap between rich and poor.

Liberals blame the "wealth gap" on Republicans, but the fact remains it is caused largely by our tax system - a system put into place, and constantly being raised, by Democrats.


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