How can we widen the gap between rich and poor?

Let’s do a little “thought experiment”:

Assume we ONLY tax people who earn over a MILLION.  Treat corporations as people and only tax those who have incomes over a million also.

All government would be paid for by people or corporations who bring in a million dollars or more through sales of their services or goods.  Now it takes a LOT of money to run the government, so they will have to be heavily taxed.

Where will they get the money to pay these taxes?

They already pay about 18% of their income in taxes, let’s assume this new tax regime will raise that to 90%.  Where will they get the money they pay their taxes with?  …think really, really hard!

Yep, they get it that taxable money from the prices they charge for their performances at the theater, their performance on the golf course, tennis court, NFL or NBA game, in court, in the operating room, etc.  …from their building designs, their ship or chip or tablet design, etc.  …from their process design, management or execution on the production line.

They collect the money we are going to tax away from the price of goods and services they sell.   …the price YOU pay.

Pretty soon every productive person will be required to earn 4 or 5 or much more than they were paid before in order to maintain the same standard of living!

TADA!  We’ve vastly increased the gap between the poor and the rich.

Simple concept, isn’t it.

So why do so many in this country think making the rich  “pay their fair share”  will not rebound upon the poor in the form of HIGHER prices and a WIDER gap between the “classes”.

Our politicians LOVE to tell us lies about the rich/poor divide:  It wins votes for the Dems when the poor think they are being cheated by the rich.  It wins votes for the Repubs when the rich (or want to be rich) think that they are being so charitable by paying the lions share of the tax bill, and that the Repubs will somehow protect them from even a higher tax burden.

Both are telling lies because, frankly, they are more interested in growing political power and contributions to their life-style than the welfare of the rich OR the poor.

I’m for a “classless” society.  I want everyone to earn as much as they can with their gifts but not a dime they don’t deserve.  I don’t want their salary distorted by the government to the detriment of a competitive and opportunity-filled marketplace.

Please… Help me stomp out the stupidity that suggests that “raising taxes on the rich” will somehow reduce the gap between the rich and the poor.

I think this idea flows from the assumption that prices are somehow regulated by the government “regulators”.  This is not the case.  The McDonald’s Resturant chain does not have prices set by Uncle Sam.  Competition from competing fast food outlets keep their prices down far more effectively than any easily corrupted bureaucrat could.

The problem with the really big banks (and other conglomerates) is not that the government doesn’t regulate them enough.  It is that their very size and importance to the politicians mean that they are largely “protected” from the competition that would force them to operate efficiently… they are “enabled” in their criminality by the government.  Simply looking at the history of the last decade proves this over and over again.  There is no serious difference between sole-source contracts to Halliburton (supposedly because they were so big as to be the only company able to satisfy the requirements) or the bail-outs of the banks and states and unions etc that has followed TARP into the new administration.

Wall Street demonstrators are right about the questionable behavior of the biggest banks and investors.  But they are very wrong to think that somehow government is the solution.  It was government that enabled the bad behavior, and sometimes dictated it (e.g. the issuance of home loans without proper documentation of income).

What will cure the problem of the widening gap in income?  What will cure the crony capitalism corrupting both government and the business community, and provide for JOBS?  The solution is starring us in the face:  competition in an honest marketplace.

Well over 30% of the dollars we pay for things ends up as tax revenues.  Yet we pretend only the person the money is collected from is suffering from taxation.

The corporations and the “rich” are effectively secret IRS agents, collecting hidden taxes from all of us.  Why does Buffet and others say “raise taxes on the rich”?  Because the larger the share of the governments revenues that flows through their bank accounts, the more power and influence over government they have.

This was the original reason the independents left the Republicans and voted for Obama.  This same reason is why the independents ran away from Obama and the Democrats in 2010 upon discovering that the Dems were worse than the Repubs at resisting the temptations of crony capitalism and pandering politics.

We know better.  Why do we allow our politicians to manipulate us into hateful rage with lies that are this transparent???

Don’t listen to me.  Think for yourself.  Formulate your own “thought experiments” and analyze what happens to the economy and your standard of living.  Do not let crowds of demonstrators or politicians feed you answers.  Think independently.  Don’t let the “Party” or the “Union” or your “Employer” do the thinking for you.

Smaller government, smaller corporations, and more local control is the only way to bring “power to the people”.  And this smallness comes when the ranks of competitors swell and the power is distributed widely and deeply throughout the society.  We are all empowered when competition is increased.

This has been the objective of the independents when we voted Democratic in 2008, when we voted Republican in 2010, and when we vote in 2012.  We will use the power of political party X to clobber Y when Y is in power and lies… And the other way around once X takes power and lies.  Eventually they will be force to follow the will of the independent thinking people of the nation.

Think independently, vote independently, promote Independence!  We are the swing vote that decides elections and makes parties obey the voters.

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