Politics as we know it may be dead inevitably because counterproductive economic policies are built in to the democratic representative political system. Distorted incentives face the very people who are in charge of creating political and economic policy. Democracy has become a masquerade for individual and lobbying interests of corporations and the U.S. Congress. Special interest groups pressure Congress to pass laws to reward those they are paid to represent at the public’s expense.
Foreign nations are hungry for U.S. capital. The Swiss may only charge wealthy individuals a 5% income tax if they become Swiss citizens. Other nations are abolishing taxes on all capital just to get the wealth into their economy. This way the wealthy get government services at a fair price.
Today, we are looking at worldwide income redistribution. The period of political domination of economies is ending slowly but surely. The U.S. will eventually get stuck with enormous unfunded bills for promises made by our shortsighted politicians.
Voters forget that the top 50% of all taxpayers pay up to 95% of all tax revenues collected by the federal government with the bottom 50% paying the other 5%, while the top 2% pay 30% of these tax revenues collected by the politicians. Taxing the success of those who are industrious enough to succeed in America also taxes those who create the jobs. Higher taxes do not create jobs but may inhibit job creation.
Seventy per cent of the jobs in America today are created by small businesses. Tax them more and fewer jobs will be created. Taxing the wealthy always includes taxing more of the profits earned in the stock market and 70% of the U.S. population owns stocks so taxing them ends up taxing the middle class too.
When joblessness in America is measured the federal government only surveys the hiring going on at big corporations and not small business and small business employs 70% of the workforce so we may never know how many jobs are really being filled or eliminated.
Government regulations tend to punish small businesses far more than businesses with 500 or more employees. Regulatory and tax burdens for small businesses may be up to twice the amount that big businesses have to take on…thousands of dollars per worker on average. The cost of complying with government regulations are excessive for small businesses compared to big corporations. These burdens impose a disproportionate amount of the costs on small businesses and entrepreneurs.
SUPPLEMENTAL SOURCE: FOX TV NEWS OCTOBER 9TH, 2004