Historically, smaller government and lower tax rates have proven to be more fiscally responsible than the current big government, big spending plans enacted by the Obama Administration and the Democratic Congressional majority. Thanks to their victories in 2006 and 2008, the Democrats can enact virtually any legislation they conjure up. This is already posing a clear and present danger to the fabric of our sovereign nation.
In response, patriotic Conservatives need to unite and contribute their ideas, time, energy and effort to the re-birth of a new Republican Party.
This current spending plan is a disaster to those who support individual liberties. Most of the current “tax cuts” are a redistribution of wealth. They’re a lowering the payroll deduction for working people; many of whom don’t make enough money to owe income tax. All this means is, at the end of the year those people will be getting a smaller income tax refund. In other cases, they’re getting welfare checks. President Obama and the Congressional Democrats will continue to reduce personal income taxes for more and more people until the majority of people don’t pay any taxes. Meanwhile, they will increase the tax burden on businesses and individuals. As businesses fail, more people will begin receiving welfare checks. Only the “rich” will be taxed. Congress will jack up the tax rates on those who pay for the growing number of welfare checks. The majority of people won’t care because it won’t effect them, since they will no longer be paying taxes. This creates a giant underclass, dependent upon government for survival and, as a byproduct, life under government’s control.
The government has already loaned billions to banks. In exchange for those billions the government has received preferred shares of stock in those banks. Holders of preferred stock are first in line for any dividends paid out to shareholders. Since the banks have to pay the government back those billions, holders of common stock will receive no dividends. Everyday investors won’t buy stock in those banks; instead, they’ll sell their shares in order to use that capital on an investment that will pay a dividend. This has lead to the de facto nationalization of the banking system.
Tax cuts would help in more than one way.
Corporations don’t pay their taxes. They pass the cost of those taxes on to the consumers. An elimination of corporate taxes would lower the cost of goods to consumers and create an incentive for investment by both individual investors and group funds. It would eliminate the need for corporations to lobby Congress for more favorable tax structures and/or creation of additional loopholes.
A cut in business tax rates would leave more money in the hands of businesses that succeed, and help those businesses grow through the reinvestment of profit. Growing businesses have a need for new employees. Growing companies which are hiring instead of laying off employees make people more secure in their own economic future and therefore more likely to engage in discretionary consumer spending.
A cut in personal income tax rates would also aid discretionary consumer spending. This would improve the demand side of the economic equation without slow, wasteful government spending which requires borrowing (with interest) or printing money, which fuels inflation.
It’s seems clear which direction the United States should take. That direction is forward, into the past, and towards the fiscal responsibility of a re-born Republican party.