We can't tax ourselves into prosperity!

Weekly Opinion Editorial

SIMPLE ECONOMICS

by Steve Fair

     In 1960, the Democrat platform had a plank under the Fiscal Responsibility heading that said,  “We believe, moreover, that except in periods of recession or national emergency, these needs can be met with a balanced budget, with no increase in present tax rates, and with some surplus for the gradual reduction of our national debt. “   A lot has changed in 56 years.  The 2012 Democrat platform says Ds support, “making sure everyone pays their fair share of taxes.”  That means taxing more, especially those at the higher income levels.  Fact is, everyone will have to in order to pay for all the free stuff Sanders and Clinton are promising young people.  Here is a short economics lesson:

     First, there is no such thing as free.  It doesn’t exist.  It is impossible to get something for nothing.  Someone is paying the bill.  My economics professor in college said the only thing that was free was sunlight and air, everything else costs.  When Bernie Sanders promises free college tuition, he really means that hardworking Americans will foot the bill.  Somebody has to pay, even it isn’t you.  Professors don’t work for free.  The buildings cost money. It is categorially un-American to eat lunch and stick someone else with the bill, but that is exactly what Sanders and Clinton are proposing. 

     Second, businesses don’t pay taxes.  When politicians tell you they are going to tax business don’t believe it.  Businesses don’t absorb taxes; they can’t and stay in business.  They pass tax increases on to their customers in the form of price increases.  Consumers pay more for food, gasoline, drugs, and services because the business has to charge them to pay the taxes and to stay in business.

     Third, taxing productivity will reduce future productivity.  If the incentive to get ahead is taken away, then the most productive members of society will simply stop producing.  Why work hard to get ahead if the government is going to get the money.  Look no further than Europe where productivity has reached record lows.  In a socialist economy, everyone is equal- they are all poor- with few exceptions. 

     Fourth, the US national debt seriously weakens our nation.  When President Obama leaves office in a year, the national debt will be over $20 trillion dollars.  That is nearly double what it was eight years ago.  He can’t bear all the blame- Congress was involved too, but the reality is the country is broke and we keep spending.  Future generations of Americans will be paying for the reckless irresponsible spending of their forefathers.  In a self-governing system of government, the people can’t blame the elected officials.  They have to take responsibility and recognize they are the problem. 

     Congress should immediately pass a balanced budget amendment and cut spending to the bone.  Desperate times require desperate measures.  Nothing should be spared.  Entitlement spending should be first and by the way Social Security should never be called entitlement spending.  The money I have paid into Social Security has been stolen by the feds and spent on other things.  Madoff is in prison for doing the same thing.  Social Security is a glorified Ponzi scheme.

      The final statement in the 1960 Democrat Fiscal Responsibility heading read, “But man does not live by bread alone. A new Democratic Administration, like its predecessors, will once again look beyond material goals to the spiritual meaning of American society. “ Truer words were never spoken- man doesn’t live by bread alone- but government is never going to be the solution to our problems, economically or spiritually.  Until citizens of this great country rise up in mass and demand government live within their means and support serious cuts to governmental programs and services, we will continue down the road to economic destruction, but we will have free college tuition.