Taxes Hurt The Poor More Than The Rich
It’s not a stretch to say that most everything the government does has the opposite of the intended effect. Regarding the plethora of tax raises that will come down on America soon, because we’ll have them no matter what happens with the fiscal cliff, they will have the opposite effect as per the Presidents statements.
Where he asks that millionaires and billionaires “pay just a little bit more”, will likely serve them greater than it will most people.
It’s not the income tax that will impact things as much as the death tax, investment taxes, property taxes, sales taxes, etc.
For example, if there is more tax along with buying and selling property. People wouldn’t be able to cover the extra cost of the tax with a snap of their fingers, so prices would come down in order to be sold. Prices could go up in order to cover the cost of the tax by making a bigger sale, but then the size of the tax receipt would go up as well, thus negating that line of thinking.
The more it costs to do something, the less people are inclined to do it. The more it costs to buy or even sell a house means that people are less likely to do it, and thus drops the demand and thus drops the price.
Now when the prices have been suppressed, what is likely to happen. Let’s examine. We have plenty of property with motivated sellers who simply can’t sell because the market is saturated.
Sounds like the perfect opportunity for someone who can absorb all the cost, buy up lots of property, and then squeeze the market.
Higher taxes are not a means to helping the middleclass, or underclass. Rather they are going to limit their options by restricting their financial opportunities and pave the way for a small number of people to aqcuire more.
As progressives love to say, ‘the rich get richer, and the poor are getting poorer’. Taxes are more likely to speed that up than anything.
Go down this road America and you will soon be run by a bunch of Oligarchs who own and control everything. I had fun traveling in Ukraine and I’d like to go back sometime, but I wouldn’t want to bring it home with me.
If the taxes had the chance to cover our deficit it might be worth it, but since they won’t even come close, there’s no reason to choke the American citizen with a economic deathload of taxes. But the point is still that spending far exceeds what we could bring in.
Posted on December 7, 2012, in No Hope For America, Problems to Ponder and tagged america, business, economics, oligarchs, politics, real-estate, redistribution, rich get richer, tax the rich, taxes. Bookmark the permalink. 3 Comments.