Brushfire of Freedom
Ram Rants
Well, here we are, the budget battle winding on, at least a few billion dollars less in spending, and Dems trying to take credit for the positions they opposed just a few weeks ago. We are also just a few days away from the tax deadline, the day most Americans file their returns and see, at least for a few moments, how much money they give (yes give) to the federal government.
So the discussion is spending cuts, the focus of most of America is on taxes. And Obama is talking about?
Tax increases. Yup, as expected, planned, posited, whatever over the past two years, Obama has “put taxes on the table”. His plan for reducing the deficit that he and his cronies created? Take more money from working Americans. You got your spending cuts, now you must pay for them. That is Obama’s plan. It always has been. Why else would a party who has campaigned against inflated government deficits begin spending like teen girls with daddy's credit card the moment they get control of the House?
So Barry wants you to pay more. You are not paying your fair share, you know. You could pay more. Just ignore the inflated food prices. Those grocery items don’t count as part of the inflation calculation, so they’re not real anyway. You can disregard the skyrocketing fuel prices as well. You should be driving one of Barry’s electric cars anyway. Out of work? Well, you have the unemployment benefits that have been extended almost infinitely. Just give Barry a bit more out of the check that he gave you, and you can do with less. Hey, you don’t have to drive to work, you’re not paying higher gas prices, you don’t need the money.
So is this just bad timing of an inevitability? Is an income tax increase the only way we can get our hands around the deficit before it destroys the future of our children?
No.
Here’s a quick test. What happens when the price of an item or service, like gas, is increased? That’s right, people start buying less. Dems know this, it’s why they increase taxes on cigarettes. Now, some basic math here. Those of you who went to Berkley may want to get out a calculator.
If two people buy gas at $1.00 per gallon, and the tax is 10%, or 10 cents, then the government gets 20 cents each time those two people buy gas. Now, assume that gas price rises to $1.10 per gallon and one of those two people says, “That’s it, I quit, I’m buying a Chevy Volt!” You now have one person buying gas, and you have only 10 cents coming to the government.
Now imagine that the price of gas was raised by a tax increase, if it went from $1.00 per gallon to $1.10 per gallon because Dems raised taxes on gas. Their stated intent was to increase revenue. They believe that, with the increase of 10 cents on each gallon, they will get 20 cents from each gallon of gas purchased. With two people buying, they will get 40 cents vice 20 cents. But in steps your new Chevy Volt owner. He, or she, has decided to stop buying gas because of the increased price. So now the government is getting no increase in revenue, with only one person buying and paying 20 cents on each purchase. So Dems raise taxes again, gas goes to $1.20 a gallon, and the last person heads for the Chevy dealer. Now gas is $1.20, the expected revenue from each sale is 30 cents, and the government revenue is?
Zero.
Moral of the story? Tax increases do not generate increased revenue, the reduce the revenue stream. This can be seen throughout the history of man. Tax cuts? Increased tax revenue. Tax increase? Decreased productivity, decreased tax revenue. Efforts to reduce the deficit by raising taxes? A failure. Every time it’s tried.
Cut spending, cut taxes, increase productivity, increase tax revenue, and decrease the waste from the federal treasury. Look at New Jersey. Look at New York. Look at California. You will see what happens when taxes are increased, and taxes are cut. At this time, a time when all of us are writing checks and surrendering our hard earned dollar to the over-reaching, over-bloated, overly power hungry Obama regime, it might be best that we hold off on the talk of tax increases. Not only bad timing, it’s a bad idea.
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