Tax the Rich People & Businesses....Not a Good Idea

It amazes me how the liberals' solution to all problems involve raising taxes on the "rich." Currently, there are discussions on fixing the current oil crisis by imposing a wind falls tax on the oil companies due to their excessive profits. Other ideas...we can pay for health care for U.S. citizens by increasing taxes on the wealthy, and we can pay for increasing education costs by increasing property taxes. The government can provide anything to anybody... just raise taxes on the rich. Easy!

I have a question...will the government give the oil companies money when they are losing money? Some people fail to acknowledge this fact, but, if the oil companies make more money, they already pay more taxes. Although the effective tax rate for a c-corporation is something like 40-50% depending on the state residence, for simplicity purposes, let's assume it is only 10%. If this company makes $10 million dollars, they would pay taxes of $1 million dollars. If that same company is able to improve business to make $100 million dollars, they now pay $10 million dollars. Isn't it strange how the liberals try to make big business the enemy? In effect, they punish these businesses by making them pay more taxes the more money they make.

Sometimes, you have to wonder why anybody even wants to try to make money anymore. The harder you work, the more money you make, the more the government takes. Isn't it strange...you would think that the government would embrace businesses since that IS the source of their livelihood and spending. That is what the governments from overseas practice. It is not uncommon for countries such as China to help subsidize and cultivate industry. These countries understand the concept of Reagan's theory of trickle-down economics. When businesses make money, we all benefit...employees, employers, cities, states, and countries.

When businesses make money, they hire people. These employees make money and pay taxes on what income they bring home while the company matches some of the taxes and social security for each employee. Ultimately, the more people that are working for a business, the more payroll taxes the company pays the government.

When businesses make money, they buy materials and supplies to make their products or provide services. This "trickles down" so the vendors and suppliers have to employ people and purchase materials and supplies as well. The more money the business makes, the more this "trickles down" to more businesses and ultimately more workers who pay taxes.

When businesses make money, they pay more taxes the more goods they sell via the sales tax.

When businesses exist, even without necessarily making money or breaking even, they provide local taxes to the cities and counties in the way of property taxes which fund public schools as well as other local infrastructure needs. When these businesses exist, they consume utilities such as electricity, water, gas, telephone, etc. which makes it more feasible to provide these types of services to residential customers. When businesses exist, they make contributions to benefit local communities.

How can anybody be so quick to try to lay more tax burden on businesses than they already endure? Businesses are not the bad guys...they are the roots of our economy and the roots of our tax revenues. With the existing burden, not to mention the looming burden, is it really any wonder that businesses look to relocate overseas. Other countries welcome business. Other countries welcome the "trickle-down" benefits of businesses.

The liberals would have you believe that the government provides for their citizens. They provide social security, they provide welfare benefits, they provide unemployment benefits, they provide food stamps, they provide medicare and medicaid, etc. Where do they get their money to pay for all these programs not to mention all the pork barrel spending? Tax revenues from you and me and all the businesses that generate wealth for our country. When has the government really generated any wealth? When has the government created jobs? Most of what the government does is spend the money they tax you, me and our employers. And they don't do that very effectively!

I have a question...from whom would you rather receive money? Me, if I decided you were in need of $1000; or from the government after I sent my $1000 to the IRS and it was processed through the bureaucracy of collections , and all the committees that determine where all the tax revenues go, and then gets processed as a check and distributed? Most businesses calculate the cost of fulfilling an order at no less than $100. That means that just the paperwork and logistics of processing an order costs at least $100. I'm not sure how that translates into government collections, but I wouldn't be surprised if it cost the government $500 - $1000 to give you the $1000.

Have you decided yet? You can have $1000 from me, or you might get $500 from the government after all the processing costs. Oh yeah...did I mention that you could get my $1000 processed through the bank within the week? And from the government...I hope you don't need the money too badly, because I would imagine that it could take 3-6 months if not longer to get your money from the government.

Tax the rich...you're taxing the poor and needy more! Tax the rich...you're chasing businesses and investors overseas. Tax the rich...your employer might decide they can't afford to keep you on the payroll. Tax the rich...people lose their incentive to make more money and start businesses. Tax the rich...not a good idea!