HIGHER TAXES: Killing the American Golden Goose and Her Golden Eggs

Higher taxes curtail investments and jobs and the American Prosperity Machine – Free-Market, Constitutional, Free-Enterprise.

According to the Tax Policy Center, a research group in Washington, the upper income people in the USA are paying a higher percentage of their income in federal taxes than at any time in 30 years.

68% of the population say wealthy households pay too little in federal taxes. 
 
Is that true?  According to Steve Moore of the Heritage Foundation, the top 1% of household earners in America pay almost 40% of federal income taxes. They earn on average $370,000+ per year. Furthermore, they own only 18% of the assets. Most of this money is invested in the American Prosperity Machine – Free-Market, Constitutional, Free-Enterprise.
 
A larger segment — the top 10% of household earners — pay 70% of the federal income taxes.

The top 20% this year will pay 27% of their income in federal taxes. The middle 20% will pay 13% of their income in federal taxes. And the bottom 20% will pay nothing at all.
 
America’s high taxation rate has adversely affected business formation and job creation in our country.  The prosperity (jobs) of our nation depends on innovation, investment, entrepreneurship and business expansion.  Who is going to make risk investments in the USA, only to have their successes taxed away by a de facto Cultural-Marxist/Fabian-Socialist centralized government?    

President Obama says he wants to cut tax loopholes. Stuart Varney says many of the so-called loopholes are really tax deductions or tax incentives – for example, interest payments, capital investments, business startup expenses, etc.
 
By eliminating these tax deductions and/or incentives, the government will, in fact, be raising taxes on the already overburdened successful, productive, working and investment segments of our society. If we get the Buffett Rule – which the President is pushing for – the upper income taxpayer will get another rate increase in addition to the closing of tax deductions.
 
Americans should keep in mind that higher taxes curtail investment and entrepreneurship, and the jobs and prosperity that they create – that our people have enjoyed since our country was first founded.  Higher taxes are already killing America’s Prosperity Machine – Free-Market, Constitutional, Free-Enterprise.
 
America is killing the proverbial goose that has been laying the golden eggs that have funded the highest standard of living for the greatest number in the history of the world.  Instead, the eggs are going to the gigantic government bureaucracy and to hand-out politicians and their supporters.

William Pauwels

About the author, William Pauwels: William A. Pauwels, Sr. was born in Jackson Michigan to a Belgian, immigrant, entrepreneurial family. Bill is a graduate of the University of Notre Dame and served in executive and/or leadership positions at Thomson Industries, Inc., Dow Corning, Loctite and Sherwin-Williams. He is currently CIO of Pauwels Private Investment Practice. He's been commenting on matters political/economic/philosophical since 1980. View all articles by William Pauwels

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