Tag Archive: middle class

To clarify, we don’t need uniform taxes in the essence of taxing uniforms, but by the way of making them equally applicable to everyone. Here is a brilliant synopsis by my friend Rex about how the current high tax rates on corporations really plays out. Hint: it’s not hurting “the rich.”

“Big Corporations have a huge advantage in raising capital because they can take people’s money and give them limited liability. Big corporation executives have huge advantages in tax rates because they can use incentive stock options to defer taxation on capital and tax most of their salaries at capital gains rates instead of ordinary income rates.

If a small corporation borrows from the bank, the shareholder will have to sign a personal guarantee, so the small corporation guy usually doesn’t walk away free when something fails like the big corporation guy. The preferred way for small corporations to raise capital is through prior earnings, but if the government takes half their earnings in taxes, or more, it gets very difficult for the small corporation to control its own destiny without having to resort to banks, brokers, underwriters, public shareholders, and everything else that will limit the way they can use their ideas, which they are usually pretty attached to.

Big income taxes, for those reasons, and others, are not a tax on being rich, but on getting rich. The middle class doesn’t want to stay in the middle class, and that’s the source of a lot of incentive, being able to do things your way and control your own destiny.

That’s what the income tax system is destroying in America, the economic liberty that brings a ton of innovation. That’s why big corporations do all the things to us we don’t like, because big government gives them unfair advantages. Living in a homogenized society may not be the most terrible thing, everyone working in cubicles with a 401k and doing it the way someone else wants it, but that isn’t what made America what it is. It was never meant to be a place where people were stamped out uniformly like postage stamps, standing in long lines at McDonald’s.”

So, high taxes don’t do anything to the already rich, but they sure do keep people down. This is one minor example of how the rhetoric doesn’t match the actual results of a policy. “Tax the rich” equals “keep people down and help the rich.”

Do you want policy that sounds good but hurts the average American? Or do you want policy that delivers?

Know where you stand.

Back when we were still part of England, there were classes of people. If you were born to a scullery maid, you’d never have even the opportunity to go to university, let alone a well-paying job. You were not to look people of a higher class in the eye, and you were literally stuck in the class where you started, no matter how smart you were or how hard you worked…none of it mattered. That’s what “classes” mean.

In America, people talk about the “middle class.” Well, that’s bunk. We have NO classes here. We are all born EQUAL, have equal protection under the law, have equal opportunities to make the best of what life has doled out for us, and no one can tell us we can’t look anyone in the eye…even the president.

See, the “middle class” is a myth. There are people who currently make what we currently deem to be “middle class wages,” (which changes all the time, by the way). But, that means nothing in terms of wealth…or worth. With regular people, they tend to look “poor” at first, then when they get more experience, get promotions and the like, they make more money. Then, they start to look poorer later, when retired, but that’s because retirement funds don’t count as INCOME. See? It’s a farce. A very large number of older Americans have even left the realms of “middle class” in the dust when it comes to wealth.

What you will never hear from countries that have Socialism or true class structures (see the Untouchables in India for an actual example of class structures is operation today) is someone being poor dirt poor and “making it” or even people just living the lives they carve out for themselves. That’s reserved for America where we don’t have classes and we don’t have people who are stuck forever in poverty due to the way the government is structured (massive taxes that prohibit the upward mobility that used to happen so very much in this country).

At least, that’s what America USED to be. Now, we are more and more into socialism, which means a ruling class…and everyone else, including you. The ruling class we have elected for ourselves do not hold themselves to the laws that they write for us, earning higher wages is punished with higher taxes punishing success, and the ensuing stagnation of the economy is what always happens when people in republics do this. Pretty soon, if we don’t shape up, we will have a real middle class…and like most socialist countries, the “middle class” will be actually poor. But, when everyone is starving, no one is hungry, right?

Personally, I follow Jefferson’s feelings on the matter:

I prefer dangerous freedom over peaceful slavery.

Amen, Jefferson, Amen.

Pick up a copy of my book by clicking the link at the right! Seriously, when is the last time you read a history book that didn’t put you to sleep? Well, now’s the time!!

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