There is something wrong with the public’s general attitude toward Free-Market Capitalism. Many people associate it with big business and the rich. However, that is not correct.
In fact, big business and the super-rich tend to dislike Free-Market Capitalism. They favor big government control, which they can influence via costly lobbyists, lawyers, and political contributions. Big business and the super-rich hate competition. They encourage complex regulation, red-tape, free trade, foreign out-sourcing, government subsidies, tax loopholes, crony-Capitalism, etc. – most of which favors their grandiose institutions, while hindering their small business, competitive operators.
Don’t believe me? Take a look at the Obama Administration. Who are their primary supporters? Buffett . . . Gates
. . . Soros . . . Immelt . . . Dimon . . . General Motors . . . Big labor unions . . . Hollywood . . . Entertainers . . . Athletes . . . the Super Rich. Obama likes to pretend his financial support comes from the little guy – and indeed they do provide electoral support. He likes to condemn the rich and powerful while welcoming them to the White House. And of course, big media chime right in promoting and covering practically everything Obama does.
In fact, Free-Market Capitalism is a system that fosters private enterprise, intense competition, entrepreneurialism, small business, etc. – and in so doing protects the interests of the public at large. Free-Market, Constitutional, Capitalism tends to oppose big, centralize government and its bureaucracy and excessive regulations. It opposes too big to fail corporations and financial institutions, government bailouts, and government run monopolies.
In the Democrat’s hundred-year effort to sell its de facto Marxists/Fabian-Socialist/Quasi-Communist centralized government agenda, and its government dependent Entitlement Society, they need someone to blame for their economic failings. So with the help of the liberal-leftist media, they attack the Republicans, big business, the rich, and Capitalism. Yet, the unique prosperity of our nation was built upon Free Market Capitalism.
Meanwhile, 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.
Specifically, 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.
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 central to the genuine Free Market Capitalism mentioned above, 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.
So how much do the top 1% pay in taxes? According to the Tax Foundation, the top 1% pay 37.38% of the total tax burden. The top 1% earn on average $370,000-plus per year. Most of this money is invested in the American Prosperity Machine – Free-Market, Constitutional, Free-Enterprise.