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1.01.2005

How to drive politicians nuts

Here's a little common sense for people who don't seem to have any - politicians. They don't seem to understand that, if they tax all the money out of us, they won't get any more. So, let's dissect why America cannot continue the way it's going.

Let's say I want to invest a little money. Not much, mind you, let's make it realistic. Say I've managed to save up $10,000. That's fair. Of course, to get that $10,000 to invest, I had to earn $15,000. Why is that? Because I'm forced to pay out about 1/3 of my income in taxes.

For those keeping count, that's the first time my money has been taxed.


I take that money, and invest it in a business. The business makes some money. The income that the business brings in gets taxed. That's a second taxation, but we'll let that one slide. After all, the corporation is a separate entity, and it's going to get taxed. It happens. We're still cool.

Now, the point of a company making money isn't for the company itself to make money, it's for the shareholders to make money. Now, because of the stock I bought, I am a share holder. When the corporation distributes the post-tax earnings to the shareholders, that money should just be mine. After all, the income was already taxed. But, no. It gets taxed again. That's three times now.

Let's say my company is doing well. The stock I bought goes up in value. I turn around and I sell my shares, because I'm sick of the triple taxation on my money. Guess what? I get nailed again. This time, at the capital gains rate of 28%.

Now, knowing that every dollar I invest is going to get taxed four separate times, I decide this is far too painful, and I think about where else to invest my money. The best place I can think of is investing in a non-US corporation. Some place that won't tax the hell out of me, and that allows me to hide my dough from the jackbooted thugs in Washington.

How does this affect America? Simple. People stop investing in US corporations, and these companies stop being able to hire Americans. Fewer Americans have jobs, forcing those who have jobs to absorb a larger tax burden to pay the welfare benefits to the unemployed masses. Those people stop being able to invest. Companies shrink further. America tanks.

This is the "dream" of the left. For reasons unknown, they think that a country can be prosperous simply by giving money to its citizens, and stealing it from the people who make something of themselves. What they don't realize is that, if they get to a point where taxes become that punitive, the rich people will simply leave. Small businesses will fail to start. We'll become a welfare state, with no industry whatsoever. But, hey, that's at least five years away.

So, how to cure this? Simple. Get rid of income taxes. Completely. HR 25 is the cure. (For details on Fair Tax, go to http://www.fairtax.org.) Go ahead and read it, I'll wait.

So, we've stopped taxing people's income, and only tax what people spend. This leaves people with a lot more money available. Where should they invest it?

Stuff it under the mattress? Although under the current IRS regime, that's the only smart thing to do, this isn't neccessary anymore.

Invest in foreign corporations? Nah. They're also saddled with income taxes, and getting caught dodging them would suck.

Invest in American corporations? Here's an idea. You invest in stock. You earn money. You make a profit. You have more money to spend. The taxes come from your spending. Politicians get to steal from you, but it doesn't bother you nearly as much anymore.

Now, you're investing in corporations. They are growing, and hiring people. These people have more money, and they start to invest, and buy things, etc. It's a big, vicious cycle of prosperity and growth. Eventually we have to start outsourcing jobs - not to save money, but because the only people in America who are unemployed are those who steadfastly refuse to get jobs.

Now, why would politicians not want this? Simple.

1) Not having tax incentives to give to their friends will dry up the bribes that lobbyists pay them.
2) By not being able to scare us with tax increases, they'd have to deal with issues. They'd have to run on their records. They'd have to be good for America. And they won't do that.

So, if you want America to succeed, call your congressperson or senator, and tell them to vote yes on HR 25. Start keeping some of your money.


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