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.


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Posted on December 7, 2012, in No Hope For America, Problems to Ponder and tagged , , , , , , , , , . Bookmark the permalink. 3 Comments.

  1. I remember a special edition report by our local news company that talked about how the recent laws passed on toy distributors and makers, due to lead being found in toys that were made in China, ended up forcing a lot of local companies out of business. They simply didn’t have the resources to do all the tests themselves, or even go to a lab, to prove that their toys were not harmful. None of these small time toy companies had ever had an instance of lead posioning from their products. All the law did was end up closing the doors of small time companies that bothered to make toys in America.

    Secondly, I was speaking to someone I knew from highschool who had graduated many years ago. He had worked for some car magazine and he explained that current auto regulations are one of the only reasons we don’t have cheaper and more fuel efficient cars.

  2. Nice post. The rich are also well versed in using deductions to lower their tax bills. They find a way to avoid taxes. They are pretty smart. I see a national sales tax in our future because eventually the rich will use their power to place pols in office who will reset the tax system to go to transactions and institute a value added tax so the parasites have to pay a tax even fi they arent earning any income and just gettign welfare. Just think, $200 Air Jordans could be $10 in sales tax!

    I will second the commenter who mentioned auto regs and fuel efficiency. Frame reinforcement has made many cars heavier and lowered fuel economy.

    • The national sales tax really is the most sensible way to go. I read a book on it about 3-4 years ago. Problem is that too many “normal” people wouldn’t understand it and think somehow the rich were benefiting more and not paying their fair share. They already think that.

      As for vehicle weight, the weight of comparable models from today to the 60’s & 70’s are quite similar. The Ford Fusion and Ford Taurus of today are each within ~100 pound of the Falcon and Galaxie from 1970. Much the same can be said for many cars. However, I am one to say that there is excess govt. fiddling with things relating to emissions that are useless and unnecessary such as DEF fluid.

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