Tonight when we hear the President’s call for a “fairer” economy we have to look beyond the rhetoric and at the practical effect of such governance as a commonsense conservative.
The process of re-distributing the wealth in the name of “fairness” is really the most unfair process of all. To take money from the producers and workers of society and give it to those who are not productive is hardly “fair”. While the redistributionists always make the case for the most unfortunate, taking money from your local doctor or independent business people who work 14 hours a day and lay awake at night and worry about how they are going to pay the payroll, and giving it to your cousin that dropped out of school, and works a minimum wage job as a result, hardly strikes most Americans as “fair”. But of course the discussion will not be presented in that fashion. The MOST wealthy will be presented as never working, not producing, and “selfish”. (The selfishness of those who would take that money without working for it is never mentioned.) And these most fortunate will be presented in the simplest way, never mentioning the embedded taxes they paid all along the way.
Take Governor Romney (please!) He pays a 15% capital gains rate on his income…Sounds awfully low! Unjustly low!(wink). Will the process by which he enjoys that income be explored? Romney paid 35% on the money as he made it. He then took that after tax money and invested it. The companies in which he invested created jobs and value for their customers, and paid the corporate tax rate of 35% and returned some of that money to their investors. So this money already taxed at 35% at Romney’s personal income rate, invested for profits that were taxed again at 35%, now comes to Romney for another 15% tax. And he pays too little? It is amazing anyone risks capital in this country!
This whole “fairness” argument is predicated on your not understanding all these embedded taxes. It counts on you ignoring the fact that in 1,000 days this Democrat political machine has never fulfilled its constitutional responsibility to present a budget! yet they ask you for more money? Fairness?
The idea that redistributing money from the productive to the unproductive is an “American” idea will be run up the flagpole and you will be encouraged to salute! The counter American idea that reward follows work and that much of the opportunity gap is caused by the cost of government not just to the taxpayer, but to the companies that create jobs! Do we really want to give a government that cannot present a budget more money for any reason?
Oh and don’t forget the “middle class”. There was a time when we thought the whole idea of “classes” was inherently unjust. In America we don’t have classes. Anyone who works hard can get ahead and belong to whatever part of society they choose! But now we are told that only government, busy destroying companies that create jobs, can take from the rich and give to the poor. It’s not working hard that guarantees your success, it is the government! This administration has had a hard time explaining how it is pro jobs while being anti business.
And finally, today the IMF released a sobering assessment concerning the state of the world economy. Held up for all the world to see, are those economies that attempted “economic fairness”. What they ended up with is unmanageable debt, citizens unmotivated to work for success because of the predictable moral hazard of rewarding the most unproductive among them. The path ahead if we pursue this course is clear, regardless of the packaging. Do we see it? This commonsense conservative sure does!