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TRUTH TIME: Dispelling the ‘Rich-Don’t-Pay-Taxes’ Myth

President Obama keeps saying that every citizen – particularly the wealthy  – must pay their fair share of the government’s deficit/spending needs. The strong inference is that the highest earning Americans are not paying their fair share.

Yet, according to the Congressional Budget Office, the top fifth of income recipients in the U.S.A. are paying 92.9% of all federal tax revenues. The top 5% pay 63.6%.  The top 1% pay 39.0% of federal tax revenues.  The 4th quintile pay 13.3%.  The middle quintile pay 2.9%.  The lower two quintiles pay no taxes and in fact receive -2.9% and -6.2%, respectively. 

Obama’s plea for more revenue from the rich is one more example of his ongoing deceptions – and is a disgusting effort to divide and conquer the American people for political purposes.  A truly honest president would thank the upper quintiles of taxpayers for their dedication and support of the federal bureaucracy.  But no – that wouldn’t attract or appealed to his constituency – or support his handout-happy, tax-and-spend, Democratic Party.

One of the things that bothers me is the public perception that wealthy people have money sitting around in buckets for their personal use.  In fact, most wealthy folks have their wealth invested in businesses and enterprises that meet the needs, wants, and expectations of their customers, their employees and their communities.  

In other words their money is not free for the taking.  It is invested in businesses and enterprises engaged in the service of others.  And if they don’t do a good job of it – they go out of business. Unlike government enterprises, which never close despite their poor performance – or insolvency – free enterprises must perform as measured by their return on invested capital– their so-called profit.  They must pay their own way. 

Even in the case of so-called nonprofit businesses, they must generate a surplus – really, tax-free income – or draw money from government coffers, charities, and customers. (Imagine that – customers must actually support nonprofit businesses!)
The American people are being misled by a deceptive and even corrupt federal bureaucracy and White House.  And the constitutionally protected media are failing to do their job
. . . of exposing these deceptions and . . . of educating the public on the workings of our free-enterprise economic system.

History has clearly demonstrated that the keys to a flourishing economy; plentiful, good-paying jobs; and individual prosperity for the greatest number ― is a competitive, free-market, free-enterprise, entrepreneurial, innovative, personal-initiative, profit/surplus-motivated, law-and-order economy ― where companies and enterprises exist, and people work to meet the needs, wants and expectations of their stakeholders, i.e., their customers, employees, suppliers, communities, creditors and investors ― in that order of priority. 

And this must be accomplished at a profit or surplus sufficient to support the ongoing and balanced needs of the enterprise ― sufficient to provide investors and creditors with an attractive return on their investment in the economy ― and adequate to offset the implicit risks of supporting the financial needs of the business. 

Free market, competitive, constitutional Capitalism is a time-tested, proven, economic discovery that works ― based on freedom, natural law, and the private ownership of the means of production and distribution of goods and services ― characterized by free competitive markets, motivation by profit or surplus, and safety nets for those who cannot care for themselves. 

In a Socialistically oriented economy as favored by Obama/Reid/Pelosi/Clinton and liberal-leftist Progressives, many of these functions and forces are taken over by self-serving government bureaucrats and complacent job-fillers, who can’t possibly provide the collective wisdom, experience and motivation of liberated businesspersons, entrepreneurs, innovators and workers ― operating in a competitive, free-enterprise, entrepreneurial, profit/surplus-motivated, sky’s-the-limit, economy.

American’s need to understand this ― what made America the greatest nation, for the greatest number, in world history.  We must speak out against the leftist factions that are trying to transform our nation into a handout-society.   Taxing people who work, produce and invest . . . while paying people for not working, producing and investing . . . only gives us more non-workers, non-producers and non-investors.

The prosperity of a nation depends on its collective productivity, innovation, entrepreneurialism and investments ― not on government handouts and citizen takers.

In God we must trust . . . but we must always do our part ― to secure and promote the truth and a better way ― to protect our freedom and interests ― and to defend the Judeo-Christian American-Way.

Image: http://thebyronicman.com/2012/03/06/mitt-romney-make-politics-hilarious-again/

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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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