You can raise taxes on the wealthy at 100% and still be making life worse for the poor, working class and middle classes
Okay, other people. I hear a lot of calls from the left to raise taxes on the wealthy and dump the tax dollars on the needy. You know, the economist I took a Google Image of above, Milton Friedman? The reason I chose to dedicate this post to him is because he coined the term ‘welfare trap’, referring to a system wherein poor people become dependent on government spending and not on work ethic to thrive. Milton also knew full well, that in his own words, “You cannot have freedom of movement and a welfare state, which is why illegal immigration is better for the poor than legal! Because then immigrants cannot qualify for welfare!”
But my case for freedom of movement for immigration policy comes later. Allow me to focus on the correlation between low taxes with light regulation toward poor people and working class, and even middle class, being able to create jobs for their posterity.
What the Poor and Workers and Middlemen Need: Massive Tax Cuts for just their three classes
So far as I can gather, the poor and the working and middle classes benefit most when their taxes are at their lowest level.
Not only this, bigger regulatory burden paradoxically poisons the luck of all three of these classes by charging them $4 grand more in compliance cost than millionaires and billionaires are charged. $11,000 per worker for small markets compared to $7,000 per worker for giant corporations.
But what exactly do I mean by cutting taxes massively for the poor, workers and middlemen? Well, NPR found that economists love six different economic policies that two of are directly relevant to this topic. Basically, here is the list.
- Eliminate the corporate tax
- Eliminate all income, payroll, capital gains and dividend taxes in favor of just a federal sales tax
Basically, taxing makes people want less to do with whatever is being taxed. And more than ever people want everything to do with earning money and saving money. People even want more to do with spending money to create jobs, because as it’s been said, ‘you have to spend money to make money’.
So ending corporate income tax would put a stop to this pattern of punishing store directors for investing in their respective stores.
Also, ending payroll tax would put a stop to another patten I notice both main parties in America fetishizing: punishment of employers for paying their employees according to merit.
Constitutionally, I think we need to reduce taxation to just the 20% tariff, but even so redesign that to be nothing for the poor and working class, 10% for the middle class and 30% for the rich. This is because the taxing and spending clause very clearly say that Congress is allowed to collect revenue via taxation, but only in the form of taxing trade with foreign markets.
And that’s all I got! Thank you everyone!