Debt... It's A Bitch!
Monday, October 26, 2009
Fall Into The Gap: The Rich and Poor Divide
I'm getting slower with my writing because frankly I'm either working, reading, or hunting. Nothing personal fans, but when it come to either discussing all things of relevance or pouncing on some weighty venison, I'll take my thirst for deer blood any day. A liberal friend of mine and professional Facebook Rebel-rouser passed along a report from Citi-Group in 2006 discussing the despairingly large gap between the rich and poor and essentially a smaller number of middle class individuals. Asked to place a thought I figured why not. So I pose the question to you, the reader... how would you solve this 'crisis'? Being the supply-side thinker my thoughts afterward turned immediately to our tax code, something that has been in need of reform wince the 16th amendment. Damn the 16th amendment. For those of you who are unfamiliar with our tax code it is nearly 67,000 pages long. In 1913, the Fed income tax was designed to apply to the wealthiest 1% of earners, that grew to 5% in 1939, and the after World War 2 75% of the U.S. With that those dumbasses in Washington on both sides of the aisle, we let them create an all encompassing bargaining chip that has been intrusively growing into our lives more and more. Now that 67,000 page document didn't start out at that length, its grown over the years. It was only 14 pages long at its inception. What has happened you ask? Well theres 2 real distinct objectives within a tax code. One, favors can be done for special interest groups and hidden in the complex framework; and two, the tax code can crush an enemy without leaving broken bones and reward political allies without leaving a paper trail. If you control the tax code, you control your friends and enemies.
This enables some slight of hand work, those tricksters. This is a reason with a degree of success that political hostility has been aimed at those evil oil companies and insurance companies. More taxes are added thus creating higher costs. Look at the Laffer Curve if you jamokes want a better understanding of macro economics. So what does all this mean Duke when we biol this shit down? To quote the preeminent thespian of our time Samuel L. Jackson, "hold on to your butts!"
If you haven't found this out yet our government dosen't care that much about you... all they have on their mind is power. How to stay in power. How to get more power. How to centralize power. How to destroy competitive power. Read a book if you have any doubts about such ordeals, or attend a middle school for more details on this. With it on their mind, they choose to minimize the power brokers, thus making the tax code complex to strangle out free market competition. This kills the middle class and gives the corporations even greater strength. Should the rich get richer? Why not, thats the spirit of meritocracy, become better and stronger. However when you hinder those young entrepreneurs who are out there using elbow grease to make a name and a living, you hinder the spirit of the free market. Capitalism isn't failing, the government is failing to enable TRUE capitalism. Our complex tax code makes it easy for politicians on both sides to screw the pooch. Only when we take back our government and make politicians responsible for this, can we hope to have change in this area, until then the gap will grow.
How do we solve it? A bracketed flat tax system. Russia has since adopted one and its helped them pay down there debt. Enough with these buoyant taxes that crush businesses and households. Our nation is over 11 trillion dollars in the hole because of excessive spending in bailouts to the automotive industry, an embarrassing failure of a stimulus package aimed at further government growth, and an out of control congress that throws money at fish tank experimentation projects in the Sudan. When we raise the taxes on people, the rich move and the middle class stay. Why? Because they are traditionally planted in such places. Another cause. We have to stop taxing to death and creating unnecessary programs. The top 1% of earners in the U.S. paid 39% of the federal income tax, the top 5% paid 61%, and the top 40% paid 99.4%. Holy COW! 47% OF FAMILIES DON'T PAY FEDERAL INCOME TAXES! Are you getting this... our government is a bunch of thieves.
I'm going to leave you with the words of a man who dealt with more hate mail than Jon Gosselin and George Bush combined... Abe Lincoln. He says..."Property is the fruit of labor...property is desirable...is a positive good in the world. That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprise. Let not him who is house less pull down the house of another; but let him labor diligently and build one for himself, thus by example assuring that his own shall be safe from violence when built." The Collected Works of Abraham Lincoln edited by Roy P. Basler, Volume VII, "Reply to New York Workingmen's Democratic Republican Association" (March 21, 1864), pp. 259-260.
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