Registered: Jan 2002
05-09-12 07:03 PM
Facts That Are Difficult For The Left To Accept
by Colonel Don Myers - USMC (ret.)
Last week we saw more demonstrations by Occupy Wall Street forces throughout the country. The major complaint seems to be the unfairness of the system in the United States where the top one percent have so much more than the 99%. Others report that the top earners are not paying their fair share of taxes. The latest figures for tax returns are from 2007 and are as follows:
Wages earners % of Taxes paid
Top 1% ---> 39.5%
Top 5% ---> 61%
Top 10% ---> 72.2%
Top 20% ---> 86%
Top 40% ---> 98.7%
The bottom 40% not only pay no federal income taxes but receive checks from the government because of the earned income tax credit.
The latest figures of job growth was reported this week and the figures are dismal. Businesses and entrepreneurs are sitting on their money because they fear what this government is liable to do in the future. They already know that taxes are going to rise significantly starting in January of next year if Congress does nothing to stop them. The Bush tax cuts expire as does the Social Security tax reduction and the Obamacare taxes start. Those are just the major changes.
The left likes to blame President Bush for all of our current financial problems, but lets review some of the history. The World Trade Center towers were destroyed by terrorists on 9/11/01 and that caused a significant financial upheaval. After the Bush tax cuts were implemented and took effect, jobs were added for 52 straight months. By January of 2007 unemployment was 4.6%, the GDP was at 3.5%, Social Security had a surplus each year, and 26 million people were on food stamps. While that was going on, we had troops in Iraq and Afghanistan fighting.
I used January of 2007 because the Democrats took over the majority in Congress and held it until 2011. For two of those years the Democrats held the White House, a filibuster proof Senate, and a huge majority in the House of Representatives. The Republicans had absolutely no ability to stop anything that the Democrats wanted to do. That is how we got Obamacare but not before numerous concessions were given to Senators and Representatives in the Democratic Party.
Where are we today? The GDP is at a dismal 1.8%. Unemployment has remained above 8.3% for the longest period since the great depression. Social Security now runs a deficit. Food stamp participation has nearly doubled. The answer we constantly hear is that the rich do not pay their fair share of taxes. The above figures show that that is not true. If the government took everything that millionaires and billionaires owned it would not cover the deficit for this year and it could only be done once. Growing the economy and revamping entitlements are the way out of this mess. The economy grows when tax rates are reduced. It worked when Presidents Kennedy, Reagan, and Bush did it. Look at some of our states and the ones that reduced taxes in order to eliminate deficits. It worked in Florida, Ohio, Wisconsin, and New Jersey.
Any time that tax cuts are proposed, the left states that we can not afford it. They assume that when taxes are reduced, then revenues are also reduced. That is the static analysis approach, but what works is the dynamic analysis approach. People change their behavior when taxes are either raised or reduced. That is why people and businesses move when the tax burden becomes too burdensome. Look how the people in the northeast are moving to the south and southwest. It isnt just because of the weather.