There was a call-in to one of the Marks that fill in for Limbaugh, responding to the Mark’s favorable comments on the “Fair Tax” today. The Mark repeated Steve Forbes’ call for a flat 17% income tax.
The caller tried to make the point that, although 17% would represent a large tax cut to the rich, which isn’t a bad thing, it would represent an undue hardship for those with the lowest incomes. The Mark’s reply was that at least this makes everyone a taxpayer, and therefore we’d all have a stake in things. True, but the major point was missed, in my opinion, by the host.
The correct reply to the caller’s concern is; “Perfect! Now you’ve started down the road to understanding, Little Grasshopper! If 17% percent is too much for the poor, it is too much for everyone else. If 17% will restrict the poor, it will restrict everyone else.
Let’s refer to the poor as our canaries in the income tax coal mine. If 17% makes the canary sick, we’re all being slowly poisoned, and whether we notice it right away or not, we’re all inhibited or restricted because of it.
Reduce taxes and investment and employment increase. Raise taxes and investment and employment decrease. Even if all you care about is revenue to the fed gov, and the issue of personal liberty is meaningless to you; do you want 17% of 14 trillion, or say, 8.5% of 28 trillion? That’s the sort of question we’re asking here. I say if there’s going to be an income tax it should be constitutionally limited to 5%. Any more than that not only cuts into charity in a big way, it encourages a black market, and stifles liberty and economic growth. If the fed gov can’t make it on a 5% flat tax, they’re either doing too much or wasting too much, and they need to be replaced with someone who can do the job right.
There’s another mechanism working here, that is at the same time obvious and proven, largely unreported, and almost never discussed. That is; America once was, and can be again, a haven for creativity, productivity, wealth creation, and a haven for wealth in general. Make it a safe bet that your property rights will be protected, and capital will flock to America, while at the same time wealth creation will be, once again, popping and scintillating across the fruited plains.
Let the enemies of Mankind go off and bang their heads against a concrete wall someplace. It doesn’t matter, so long as they’re ignored and powerless here.