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Tax Avoidance American Style
In a rare moment of sanity, the so-called Buffet rule was voted down in the Senate Monday…
The proposal would have set a minimum 30% federal tax rate for those earning $2 million or more and for those earning $1 million, it would raise their tax rates closer to the 30% level as well.
It was borne of this administration’s drive to codify “fairness” in the macroeconomic policies of the nation; which also means limiting the economic choices of Americans…
No coincidence there, huh?
The bill was pretty nasty, because it would have put Americans in tax rate straitjackets, with no wiggle room for avoiding taxes.
What? Did I just say that?
Yes, I did. Avoiding taxes.
In most cases, avoiding taxes is a good thing. It keeps more money where it belongs…in the pockets of those who earned it.
But is that really fair?
I think so; I think it’s very fair.
Tax avoidance: A beautiful thing
Think avoiding taxes is a bad thing? Think it’s selfish, uncaring, and unfair?
Given that conservatives are all very bad people who’ve really got it coming to them, of course we are all those things, and worse. Much worse.
If you only knew the true and dark depths of our depravity…
But just in case a spoon-fed leftie is reading this, let us add some wattage to the idea of how really helpful tax avoidance is to the economy as well as to individual Americans…
Because tax avoidance is what you do when you pay interest on a mortgage; you deduct it from your taxes.
That’s what you do when you have children--you get a tax credit for each child.
It’s what you do when you give to charity--you write a portion of it off as a tax deduction.
It’s what you do when invest capital in a new or existing business to expand it--you avoid taxes by writing off the capital expense one way or another.
All this wiggle room in the law to avoid taxes…It’s enough to choke a donkey, isn’t it?
One would certainly hope so…
But having wiggle room is often the same as having incentives to expand the economy in all kinds of wonderful and fruitful ways.
Don’t think so?
Well think again.
Every act of “avoiding taxes” that I mentioned above grows the economy.
Take the mortgage deduction above, for example…
People buy houses for the tax breaks…and employ real estate agents, mortgage brokers, escrow and title people, appraisers, inspectors, gardeners, contractors, painters, plumbers, electricians, interior designers, furniture salesmen, pool cleaners, locksmiths and the kid down the street to water the plants when they’re out of town, all because…they bought a house.
The Buffet rule would have simply forced people to pay more no matter what they did…
It was a very arbitrary law and that was favored by arbitrary leaders...like Barack Obama and too many members of Congress.
Now, let’s just say that you think that high earners ought to pay more taxes because it is fair…
And because you feel—not think, but feel (we’re talking nasty class envy here, the kind that smells like an Occupy Wall Street camp )—that it’s the “responsibility” of the wealthy to pay more.
Says who?
Does the Constitution say that?
It does not.
In fact, over taxation was kind of a big deal to the original Tea Partiers…
You will recall that a major catalyst for this country’s founding was over taxation…
Because our Founders knew what our leaders today either do not know, do not care to remember, or most likely, prefer that we not know or remember…
That over taxation makes slaves of otherwise free people.
The fact is, there is no responsibility clause in the Constitution as to which Americans ought to pay more taxes.
The ugly, mutating creature of over taxation is a creation of Congress untethered from its Constitutional foundation and of the Federal Reserve, tethered only to its own interests which have always been anchored upon foreign shores.
And "fairness" is the night stick with which this false sense of responsibility is beaten into Americans’ heads, generation after generation, by overzealous beat cops in government.
So, in fairness, I would ask the Left, “What is the responsibility of the federal government to cut spending? To spend only what it takes in and no more? To lower the deficit? To not waste billions on failed technologies? Does the federal government have any responsibility at all?”
And if so, to whom?
Why to the American tax payers, of course, right?
But that is not the case…
The government typically doesn’t respond to “taxpayers” but rather, to those who benefit from the labors of others, and to those who support the political careers of those who make and perpetuate laws that enforce “fairness” throughout the land.
Where is your confidence invested?
If you are in favor of massive, cradle-to-grave government that takes more and more money from Americans, then what does that say about you?
Where, or in whom, is your confidence invested?
Is it the American citizen and the Constitution…or is it in the federal government or even certain personalities within it?
For the Left, it is always in the federal government. The mantra is that government exists to “protect” Americans from the abuses of evil corporations.
But that’s a false choice.
Think back to the meltdown of 2008…AIG was still throwing lavish parties, and of course, awarding themselves bonuses all at taxpayers’ expense…
After they had lost hundreds of billions of dollars and threatened to take down the rest of the financial industry in the crisis...
Which of course, was created by policies from...government.
The outrage in the US was widespread, public and justified. And the liberals all said that such hubris and sense of entitlement among corporate America is what is wrong with America.
But now fast forward to today…
Want a six-figure job?
Work for the government. Government jobs pay twice the wage, with much better benefits, than the same private sector jobs, and you basically can’t get fired, not even if you’re stiffing the nightly entertainment in Cartagena while traveling on the tax payers’ dime.
Want to blow a half-billion dollars on bad solar technology? Become a large financial donor to the Obama administration.
Want to spend a week partying in Hawaii for a one-hour ribbon cutting ceremony? Work at the Government Services Administration.
You can even watch the video…
It’s called Government Gone Wild, and you must be 18 or older to view it because of its obscene nature…
I could go on, but you get the idea.
The taxes are always punishing the producers in the country and rewarding the slackers…
And there are slackers everywhere…
There is no shortage of them in corporate America, in welfare cheats, and of course, in an arbitrary, wealth-usurping federal government that demands your confidence and fealty, while fomenting doubt and dissent among its citizens.
The political fashion is to say that fairness is justice, and justice is equality of not just opportunity, but outcomes.
And that’s what the macroeconomic policies of this administration are all about.
That’s why to see the Buffet rule die in the Senate is such a hopeful sign…
Who knows?
Maybe less taxation and the Constitution will be back in fashion before too long.
And those are…The Gorrie Details.
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