This is some rambling from me to a liberal uncle of mine about taxing the rich and about the free market.
What will increasing taxes on the rich do? Just give the government even more money, who says any of that will go to the poor?
With all this corruption in the government and the super corporations like GE or other companies like Solyndra will get it and the corrupt rich will actually end up getting the money.
Will giving it to the poor even solve anything, other then making them more dependent and reinforcing the idea in their heads that the government will always take care of me so I don’t have to think much or make wise decisions.
I agree with you Rees, a lot of workers aren’t getting fairly compensated for they value they provide. I worked at a job where the owner only came in once a week for an hour or two and then left. I was doing a lot more work than he. But he worked his butt off to make it there and took an enormous amount of risk. Taking risk translates to increase in earnings.
Also increasing taxes on the rich based on the point by Elizabeth Warren that no one is a self made millionaire doesn’t apply to everyone. Yes there are businesses like your place of employment that rely on ideas and work from employed workers. But If I make millions making iphone apps in my parents basement, no one but me is working and why should I get taxed 40% when the people working at McDonalds don’t have to pay any. And what about about all those authors like the lady who made Harry potter? Why should she be taxed more? This is just like the Warren Buffet situation, you can’t justify a new tax on all the rich when the example they give for justifying the new tax only applies to a few.
My point is increasing taxes on the rich isn’t fair and doesn’t benefit hard working workers like yourself. Do you think you will see a dime from those new taxes on the rich Rees? This system and regulations do not help honest hard workers. They benefit the irresponsible, the poor, and the corrupt people; even that is debatable because it is helping them stay that way.
I bet you will actually be in worse condition than before. The owner of your company, since he has more taxes to pay, will lay some of you off, refuse to increase wages, and force you guys to work harder for less.
I was thinking about it and maybe a solution would be to increase wages and benefits for workers? But that is just like the unions and that has a direct effect on the unemployment rate and make companies force their workers to do more with less or force companies oversees to cheaper sources of labor.
I believe in a free market system a lot of the problems will be solved. But there needs to be less regulation for it to work. If you think you aren’t being paid enough, demand a bonus or raise, or quit and go to a different business or create your own. But now in economic hard times (that where caused by the regulations and government intervention) you can’t. Creating a business is very difficult now. It is hard for people to quit when the unemployment rate is 10%. I think the government needs to free up the markets, and reduce regulation so it is easier to start a business and compete. And capital gains tax? How can you talk about increasing that? That money has already been taxed through income tax. Why tax people on building the economy through investing? More than that who gives the government the right?
I think the federal government needs to do what it was meant to do originally. They try to poke their noses in everything, and may have good intentions, but end up making things worse.
How did the USA ever survive without all these progressive programs? There wasn’t even any income tax before 1913. The founders considered it immoral. I venture to say that the USA was in better condition before all of these regulations and new socialist programs.
Why? There was more freedom. People could start a business in a day if they wanted. Now there are loads of taxes, regulations, paperwork, legal stuff they have to deal with that are constantly changing you almost need an attorney and accountant just to start a business now. And you also deal with the constant fear that the government will add new regulation that will put your business out of business. I have personally experience with this in creating an investing program for the Foreign Exchange. They added more regulation “to protect” me that actually hurt me and wasted a whole year of my hard work because i relied on hedging which they removed.
I believe the USA was also better because I think the people had more integrity and charity. There was no social security, welfare, or Medicare programs. But the retired people survived, the widows survived, the poor survived, the handicapped survived. How? They were more responsible first off and people took care of other people. Now there is a decline in morals and the immoral government is trying to force it upon us and it is failing miserably.
Founders said for this government to work, the people must have integrity and morals. The founders said income tax was evil and immoral.
What is the solution? Quit punishing the people with integrity and morals. Quit unfairly taxing the rich. Create a flat tax for everyone. That way the corrupt rich and corporations (GE, Google) can’t find all these loopholes to get out of it. Create an environment through less regulation and more freedom where it is easier for businesses to start up. Allow people and businesses to fail but make it easy for them to get back up and start up again. Do not reinforce their bad behavior. Out of their failure they will learn and be better.
And the bottom line, even if we had a perfect system and government we will still have major economic and social problems if the people continue to lose morals and their integrity.
I don’t agree with you that the Gram,-Leach-Biley Act caused the recession. I don’t see how enabling financial institutions to merge in order to diversify caused it. Diversification promotes stability and helps during economic instability. The most irresponsible financial firms like Lehman did not take advantage of the Act at all. The institutions that did like JP Morgan where far better off.
I will stick to what I said before. The government intervening in the free markets through regulation and through manipulation through the Federal Reserve caused it. The politicians got it in their head that the new American dream was a home for everybody, despite their credit and income. Through Fannie Mae and Freddie Mac (both government sponsored enterprises), the Federal Reserve, and The Community Reinvestment Act the government was able to carry out their new American dream. Corrupt leftist organizations like ACORN also contributed.
The Federal Reserve artificially manipulated the interest rates to be low when they should have been much higher. The economy started to boom again in 2004 but the Fed did not increase the interest rates. Many investors took advantage of low rates to buy homes just to resell. Others bought homes they couldn’t afford thanks to interest-only loans. The Community Reinvestment Act forced banks to lend to people who would normally be rejected due to bad credit. Let the banks do their jobs on determining if a loan is a good investment or not. It is their business, not the governments.
Under the free market the government would have no involvement with home ownership or the interest rates. The interest rates would have been set by the banks based on risk, reward, and a clear understanding that making bad loans would result in bankruptcy.
A free market is a market free from state intervention. I completely agree with you that someone has to the regulating, and I completely disagree with you that it is the government that should do it. Let the businesses do their own regulating. It is their business, they know better than the government about their business. If the businesses make stupid decisions, they will fail. If businesses put harmful chemicals in their food and their customers get sick they will fail due to legal suits and diminishing sells. If they make bad loans to people with bad credit, they will fail. The businesses know these things, it is their business. The government has been constantly proved to be corrupt as corporations. They both except bribes, tell lies, and have an agenda. The difference is that the government has the legal system and guns to enforce what they say. With all that power they don’t have to be fair. They don’t have to be smart about it. They don’t have to worry about people buying their products because they can force people to pay taxes.
Companies on the other hand cannot imprison people who don’t want to comply with their regulations. Companies can’t force people to pay them taxes or buy their products. Companies are at the mercy of the market, the people. If the people don’t pay for their services, if they don’t support them, they fail. The government is at the mercy of…… the people? yeah right. The will of the people is being disregarded left and right.
You say “In addition many restrictive regulations put in place under the pretense of helping us are actual the product of powerful corporations writing our laws.” The corporations wouldn’t be able to use the government as their vehicle if the vehicle didn’t have that much power to begin with. So by limiting the government, you actually limit the ability of corrupt corporations to pass evil bills.
Corporations are essentially people. Without people corporations wouldn’t exist. Who works for them? People. Who created them? People. Who suffers when corporations are under attack? People. Who does the poor people we love so much work for? Corporations. When you hurt corporations, it ends up trickling down to the people. Buy taxing the rich, adding regulations to corporations, the workers are affected. I don’t understand how people don’t know that by attacking corporations, they actually hurt the people they were trying to save in the first place.
Grandma and Grandpa did not live in the period I am taking about, I was talking about before the 1913. Even still, there are people eating catfood today even with all these programs. There will always be poor people in our country, Jesus even said that the poor will always be among you. The thing is the poor here are hundred times better off then the poor in other countries. They are now giving free cell phones and plans to people but only if they receive free housing, food stamps, medicaid, free lunch, etc. Poor people need cell phones now? When will it end? When everyone has a BMW, house, high speed internet, free food? Or when everyone has the same? That is communism, it doesn’t work, it’s not fair, and it punishes the people who work hard. Not to mention it goes completely against what this country was founded upon.
I am all for helping the poor. But it appears what the government classifies as poor and as I do is different. I also disagree with the government on how to help them. They do not help them in the right ways. You don’t give a man a fish, you teach him how to fish. And you don’t poison the fish lake with evil regulations that kill all the fish and then steal the fish that rich have and then give it the poor. You encourage charity, encourage love, encourage service. Help people be and do those things. Do not force them. Man is supposed to have his agency, let him. Forcing was the plan of Satan.