Posts in "Taxation"

BenLevine16's picture
By Benjamin Levine at 6:41PM

Debunking Statist Arguments: Tax away Our Debt

I started this series of blog posts about a month ago when I wrote on the myth of how minimum wage laws help the poor.  This time, I'll focus on an issue that is much more Myth Debunkedprevalent in today's political climate: taxation.

Argument: We can tax ourselves out of debt!  If only the rich paid more then we could wipe away the trillions of debt and restore America fiscally!

Answer: You guessed it: False!  America does not have a revenue problem of any sort.  Rather, we have a spending problem -- and a massive one at that.  I'll use a metaphor that is akin to one that Peter Schiff often uses.  Imagine you walk by a drug addict on the street who is shooting up heroin.  He looks at you and asks, "I'm all out of heroin and I need more.  Can you give me some money?"  Hopefully, you would realize immediately that the true problem this man is experiencing is not that he lacks a sufficient amount of drugs but instead is that he has a drug addiction.  In the same sense, America (Washington and those who support their policies) does not lack a sufficient amount of revenue, but instead suffers from a spending addiction problem.


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BenLevine16's picture
By Benjamin Levine at 4:53PM

Compromise

I have been upsetting quite a lot of big government leftists with my school newspaper articles recently, which is a sign that I'm doing a fairly good job.  After complaining about my proposals to cut government programs and not raise taxes on the rich, one student commented on my article asking me to compromise: Would I tax the rich more in order to eliminate the National Endowment for the Arts?  It was an appealing offer (I would love to get rid of the NEA) but one I could not quite take.  Why?

Well, what does it mean to compromise?  It means to settle a dispute by mutual concessions.

Undoubtedly, what this student offered me was a true compromise.  I actually appreciated the effort on his or her part, but I couldn't do it in this instance.  To make concessions in life is actually pretty necessary; compromising is not an inherently bad thing.  I compromise with my friends all the time.  They want to see one movie, I want to see another, and we strike a deal of some sort.  That's completely fine.<--break->


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BrianMUGA's picture
By Brian Underwood at 4:36PM

Buffet vs. Koch - Who Is Right?

Buffet and Koch

A few weeks ago, the New York Times published an op-ed entitled “Stop Coddling the Super-Rich” authored by American investor and billionaire Warren Buffet. Considered the third wealthiest man in the world as of 2011, Buffet lamented, among other things, how many of his “fellow citizens are truly suffering” and concluded by suggesting a tax increase on those he defines as the “super-rich” and that the government “get serious about shared sacrifice.”

Lauded by the left, Buffet’s comments have been widely quoted by those who attempt to argue for “revenue increases” for the federal government and who scoff at the Tea Party’s push to cut spending. Surely if Warren Buffet insists that his taxes be raised, then there should be no excuse for other wealthy individuals in this country not to take part in the “shared sacrifice” as well – or at least that is the rationale.

Such thinking, however, is not universal among the “super-rich” of whom Buffet appeared to elect himself as the head. Charles G. Koch, American businessman and fellow billionaire, returned fire by releasing the following statement to the National Review:

Much of what the government spends money on does more harm than good; this is particularly true over the past several years with the massive uncontrolled increase in government spending. I believe my business and non-profit investments are much more beneficial to societal well-being than sending more money to Washington.

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Dave Scotese's picture
By Dave Scotese at 2:56PM

Accurate Perceptions of the IRS

Here is an IRS publication which consists of 27 examples of the legal system protecting the government's right to your money.  The first mention of a jury is one that acquitted, but it is immediately followed by a similar case in which the jury convicted.
 
 All of the other seven mentions of jury decisions are convictions in favor of the IRS.  Nobody likes to admit their mistakes, but wouldn't it be wise to keep a healthy record of the mistakes that a government bureaucracy makes?  In fact, shouldn't that be one of the functions of the IRS?  The website, irs.gov, contains five documents with the words "jury acquitted" and 52 with the words "jury convicted."  The internet itself contains about 85,000 (according to Google) pages with IRS and "jury convicted" in them, and about 25,000 with IRS and "jury acquitted."
 
 So why is the ratio of convictions to acquittals on the Internet so much lower than it is on the IRS site?  Perhaps a clue can be found in the case of the Rutherfords, who may have suffered from a jury whose judgment was compromised by a fear of audits.  Bullies only retain their power as long as they continue being bullies.  If they wish to have power some other way, they must learn to cooperate instead of intimidate.


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kmckenz1's picture
By Kevin McKenzie at 12:44PM

With friends like these...

According to Grover Norquist, founder of Americans for Tax Reform, "Not continuing a tax cut is not technically a tax increase." Wait, what?  

Let's look at this logically:  If a tax cut is allowed to expire, then the amount of taxes people pay will increase.  If raising taxes isn't a tax increase, then those words have absolutely no meaning.

The truth is that this is just more Orwellian double-speak, based in partisanship rather than principle. Norquist's claim will give Republicans who pledged not to raise taxes an out for the coming election cycle, allowing them to retain the congressional majority.

Norquist later tried to take back what he said, but the old saying remains true: With friends like these, who needs enemies?

Robert Bentley's picture
By Robert Bentley at 7:02PM

80% of Americans Want Higher Taxes??

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Leaders in Congress and President Obama are currently in the process of "fixing" the mess of our national debt. However, the President is claiming that 80% of Americans want to pay higher taxes and is using this to push through his compromise on the debt ceiling.

The Hill reports:

President Obama on Friday kept up the pressure on Republicans to agree to revenue increases in a deal to raise the debt ceiling, claiming 80 percent of the public supports Democrats' demand for tax increases.

"The American people are sold," Obama said. "The problem is members of Congress are dug in ideologically."

The President must be conducting a poll of the District of Columbia to pull those numbers out of a hat. It can be guranteed that such a huge percentage of the American people do not support a tax increase to fix the economy or the national debt.

How about we conduct a poll of Americans and see how many support cutting spending at a national level?  Then we might actually get 80% support.

Bonnie Kristian's picture
By Bonnie Kristian at 10:09AM

Two Videos on Washington's Fiscal Irresponsibility

The first video features YAL's own Piyali Bhattacharya explaining why we don't need higher taxes, and the second is a succinct explanation of the problem with raising the debt ceiling once again.

Robert Bentley's picture
By Robert Bentley at 11:22AM

Uncovered: The 15 Tax Hikes Hidden in Obama’s New Budget

The President unveiled his budget for the United States government today, and it seems there are some hidden tax hikes buried in the massive budget.

Here are the hidden increases:

  • Raising the top marginal income tax rate (at which a majority of small business profits face taxation) from 35% to 39.6%. This is a $709 billion/10 year tax hike
  • Raising the capital gains and dividends rate from 15% to 20%
  • Raising the death tax rate from 35% to 45% and lowering the death tax exemption amount from $5 million ($10 million for couples) to $3.5 million. This is a $98 billion/ten year tax hike
  • Capping the value of itemized deductions at the 28% bracket rate. This will effectively cut tax deductions for mortgage interest, charitable contributions, property taxes, state and local income or sales taxes, out-of-pocket medical expenses, and unreimbursed employee business expenses. A new means-tested phaseout of itemized deductions limits them even more. This is a $321 billion/ten year tax hike

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andrew.keast's picture
By Andrew Canfield at 4:51PM

World Economic Freedom

So the 2011 Index of Economic Freedom has been released, and the United States has fallen in the standings for the second straight year. Hong Kong and Singapore once again topped the list. After having dropped from the "Free" to "Mostly Free" classification in 2009, the U.S. is now unable to claim the status of freest nation in North America (a bragging right belonging to Canada at #6, three spots ahead of us.)

Our slide over the last year was chalked up to increased government spending and uncertainty regarding federal regulations. Perhaps we can reign in the constant growth of the federal government with new incoming Senators and Congressman like Rand Paul, Mike Lee, and Justin Amash. It is inexcusable for the U.S. to continue sliding in these rankings -- we have bountiful natural resources and massive amounts of capital just waiting to be unleashed. We need to keep pressing forward and working toward the day when the U.S. will be #1 in the Economic Freedom Index. When we have a  government that sticks to its enumerated powers (and a citizenry willing to hold them accountable when they do not do so) this will become a reality sooner than we might think.

Jeremy Davis's picture
By Jeremy Davis at 10:08PM