Monday, January 18, 2010

The power to tax

Basic economics lesson for the youngsters:

The power to tax is the power to control. Never forget that fact. Anybody who tells you that they are raising taxes to raise revenue is lying to you. They are raising taxes to control behavior and force changes in the way you run your life.

Whenever a politician tells you that he is raising taxes to pay for something, instead look at the depressive effect that those taxes will have on whatever is being taxed. Any government that wanted to raise REVENUE, lowered taxes. Kennedy, Reagan, Bush increased (actually, Congress increased) revenue by lowering taxes. This stimulates investment and frees up capital for the people to spend, and the effects trickle down through all strata of society.

Don't be fooled by the deficit numbers. These only track the delta between revenue and spending. Even if revenue skyrocketed, if the spending out-paces it, then the deficit will increase (and will give the spenders some fodder to make the claim that lowering taxes increases the deficits). Watch who complains when tax rates are lowered. It will ALWAYS be the people who want to exert more control over your life. These people are the enemies of freedom and Liberty.



1 comment:

Old NFO said...

EXCELLENT point Newbius!