Thursday, January 25, 2018

Is it greedy for the government to take 70 percent of what others earn?



The following article appeared in American Thinker on January 24th


There are a lot of politicians, journalists, and others saying corporations and shareholders are getting too much of the tax cuts, but I do not recall the AP or any of the Washington Post journalists – who basically repeat Democrat talking points when they trash the Republican plan – ever writing about what actual tax rates corporations and investors pay.  So I thought I would do their job for them. 
Amateur thief
Under the law the Democrats wanted to keep, corporations could pay up to 35% federal tax, and in Illinois, they paid up to an additional 7.75%.  Then, since dividends are not deductible, individuals could pay up to 23.8% federal tax and in Illinois an additional 4.95%.  So the government would get up to 71.5% of the profits, even though the government took no risk and made no actual investment.  Is that fair – since Democrats always talk about fairness?  Some other states actually believe that rates higher than Illinois are fair and necessary. 

Under the new law, corporations could pay up to 21% federal tax, and in Illinois, they pay up to an additional 7.75%.  Then, since dividends are not deductible, individuals could pay up to 23.8% federal tax and in Illinois an additional 4.95%.  So the government would get up to 57.5% of the profits, even though the government took no risk and made no actual investment.  Isn't 57.5% still pretty darned high for the government's share? 
Professional thief

Then, after successful share-owning individuals pay huge amounts of corporate and individual income taxes throughout their lives, Democrats believe they are entitled to a high share at death.  Why is the government entitled to that money instead of the heirs of those who actually earned it?
Damned fool thought it was HIS money!
It is time that the media, other Democrats, and the public learned that if businesses do better and get to reinvest and get a higher rate of return, then the economy does better, and there are more economic opportunities.  In that way, 100% of us, including future generations, benefit.  As businesses do better, government entities at all levels do better, public pensions get a higher rate of return (which means the workers and taxpayers benefit), and government has more left over for other needs. 

I would love to have Democrats explain to the public why it is fair, and not greedy, for the government to take over 70% of what others earned from risk-taking.  I think public debates would be fun and enlightening on this issue for the 2018 and 2020 elections.


Ed. Liberals are keen to claim that the rich are not paying their "fair share."  But does anyone remember a leftist explaining how much that fair share happens to be?

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