March 11, 2009

Taxes - Political Hog Slop

The first thing you know is that your tax dollars are to a liberal what blood is to a vampire. There is nothing on this earth that a Liberal wants more than to separate you from your money. You could pretty much skip the rest of this if you wanted to just remember that. Because the goal is control and as the great Ronaldus Magnus said “Liberals know that in order to control the economy you have to control people” I say it works the other way, or that it works both ways. To control people you first have to control the economy. And Liberals are all about control and power and Tinkering. More on tinkering later.

Know this, you can’t be both Free and Dependant. Make a choice.

Taxes are the perpetual dance partner of Liberals. I am about to say another one of those crazy things I am getting known so well for saying. Most everything the liberals want to do with taxes are going to have the opposite effect than what they Say they want to do and it is 100% on purpose. It is by design. They just hope you are too dumb to know it. (actually they are convinced you are too dumb to know it)

Most historians agree with the statement that big business and tax cuts of the 20’s caused the great depression (mostly because they were taught history by liberal books and liberal professors), but very few economists agree with that statement.
In fact most economic research of the last 40 years shows that business was the least important factor creating the depression. And contrary to what many of my fellow kooks would say the US staying on the gold standard helped a lot, we should have been off the gold standard long before we were. Massive increases in productivity in Agriculture due to the widespread mechanization of farms were another thing that totally screwed up the economy. But the grand panjandrum of economy destruction came from the Smoot Hawley Tariff Act. Almost every imported good would increase under this law and some raw materials got taxed much higher, which caused manufacturing companies to forecast higher costs and lower sales; this caused uncertainty in the market and the market plunged with every legislative step that the tariff act crossed towards passage in congress (sound familiar?) Some say this act’s effect on the economy was as much as 5% of GNP (9/11 was 3% and Katirna caused less than .5%)
Once government policy stepped in a kicked us over the edge of the abyss that hero of the left Herbert “the great engineer” Hoover screwed it up even worse with tax increases and more government intrusion (sound familiar?) Then FDR got involved and despite what all the Progressives say he did little to help and probably made the situation worse. All the jobs programs barely dented unemployment and he was elected to a third term as president even though the unemployment stayed over double digits for his first two terms. The only thing that FDR did right was finally taking us off the gold standard. It would take a long time to explain, but the problem with Gold is that its scarcity kept our economy down, we had grown too prosperous in goods and manufacturing capacity for gold to back it up without the dollar becoming worthless in the face of the rest of the globe getting off the gold standard years before.

The progressive taxation system we are under now reduces revenue. Go ahead roll your eyes, get it out of your system. I will share a few examples. In 1919 the income taxes on the lowest bracket was 25% and the rate for the top was 75%. This should have created a liberal utopia. But Tax revenues went down every time they hiked it from 1916 to 1921 When Andrew Mellon became secretary of the treasury he said that “the result of higher tax rates is that sources of taxation are drying up; wealth is failing to carry its share of the tax burden. Mellon discovered that the wealthy were hiding their money in tax exempt bonds (sound familiar) instead of investing in things that created profit. They were putting their money in bonds and investing in things like civic centers and museums and stadiums and building less factories and places people could work (sounds JUST like what the Government is doing now)

JFK’s tax cuts (yep that JFK) produced more revenue than anyone in power expected. From ’64 to ’67 the expected income was always exceeded. In ’66 there was an 11% increase in revenue above what was projected.

Ronaldus Magnus’ tax cuts caused federal income to increase over 40% in a short amount of time and the rich paid far more and lower tax brackets paid less. The Reagan deficits did not come from Tax cuts. Overspending on pork barrel projects by a democratic congress caused the deficits. (roll your eyes and huff all you want, it is a demonstrable fact) Every Reagan budget he put forth was less than what congress spent. In the 80’s revenue increased 100% and Spending increased 112%. If we had stuck with Reagan’s proposed budgets there is strong evidence that we would have had a budget surplus in 1989.

History shows time and time again that raising taxes on the rich only ensures the rich will pay less than ever. So why if history shows this repeatedly do the liberals not get it. They do. But the problem is one of control. Although tax cuts increase revenue they lessen the politicians control over individual incomes, and Liberals want to control things. It is what they do.

We need a flat tax or the fair tax or a fair flat tax. No personal property tax, no death tax, no inheritance tax. That stuff is lunacy.
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