10A095 Tax Cut Deal by Jim Davies, 12/8/2010    

After bickering for weeks, the Congress has made a deal with itself and the Prez: the "Bush era tax cuts" can remain for all for another two years. No doubt the Dems are hoping for a swing back in their favor by 2012.

The sticking point had been whether or not to keep them for the wealthy as well as for everyone else. The Dems hate success, so they opposed that, the Reps know who butters their bread and so they supported it. Thanks to the recent election, they won. But in all the blabber about why, I never heard mention of the best reason of all.

They did argue, correctly, that enterprise is run by the wealthy and that if one wants the millions of small and medium-sized companies that they control to prosper and therefore hire workers, it's real silly to raise their taxes. Expansion requires investment, investment requires money, and money diverted to government cannot be invested. So far, so good.

But the other and superior reason is that if tax has to exist at all (it doesn't) it ought to hit everyone uniformly, as a percentage. Otherwise, it would be non-uniform, hitting the successful more heavily than the rest; and that is both crazy and communist; they call it "progressive" because that word can easily be confused with something desirable, but the Communist Manifesto features such a tax as Plank #2, right beneath the abolition of private property.

Such a communist tax structure has prevailed for many decades; here it is for TY 2009. If you have "income" of $50,000/yr (nobody can know whether or not he does, but that's another question) the FedGov steals about 17.5% of it, or if you have $500,000 then you lose 31%. The better you do, the higher the rate at which they steal. A uniform rate would still steal more from the rich than the poor, but the graph line would be horizontal.

The bickerers in DC failed to mention that fundamental question of fairness, because that would have drawn attention to the fact that they are stealing, which can never be fair, and doing so in a communist manner, which is even less fair.

In the coming zero government society it will not matter: there will be no tax at all - whether flat, bumpy, upside down or twisted.

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