The INCOME tax is the biggest lie. In essence, it’s a paycheck tax. Rich men don’t get paychecks. They have wealth.
Wealth is not taxed the same as income. An increase in the rates for income will not affect the rich who have vast amounts of wealth in various trust funds and then consume things from the trust fund.
The rest of us have to have jobs where we get paid, i.e., our labor is exchanged for money. We consume things from that money. The government takes from that money first; their cut. Then what’s left over is ours to pay bills, mortgage, buy food, clothes, gas for the car, et., etc.
A rich man lives in a mansion paid for by his trust fund. The limo he rides in is owned not by him, but by the trust fund. The limo driver is not his employee, but rather works for the trust fund. A fancy dinner at the mansion? The food is bought by the trust fund and the chef is paid by the trust fund.
Why would a rich man need an “income”?
On the other hand, a small business owner sells stuff, goods or services, for money. That money is considered income by the government. Even if he uses that income to restock items, pay staff, buy equipment, replace faulty equipment, pay insurance, etc, it’s still all income. Make a million on your small business but pay out $950,000 in expenses?
Guess what? You’re a millionaire. And Obama is gunning for more of your money. So what do you do? Well, that new hire? Hit the road Jack! One more on 99 weeks of unemployment, one more not paying taxes. The economy gets worse. You have to let more workers go.
You see my point. This is hurting, not helping.
How do we get the word out to those who don’t understand this?
When I explain it so to my non-political firends the light bulb goes on over their heads and they start to understand what a mistake an “income” tax is, especially in regards to the wealthy versus the small business owneres.
We all need to do a better job explaining this!
My now deceased b-i-l was a small business owner, in that he owned 3 semi trucks and employed 2 drivers other than himself, my wife helped him with his books and taxes for years, even though b-i-l was a C.P.A. himself, he just didn't have time to do it all.
He grossed enormous amounts of money and you can probably guess the rest of the story, he paid out enormous amounts in taxes and complying with 49 different sets of state laws plus federal laws and regulations, plus salaries and benefits for his 2 employees, who in many years netted more income than he did. These are the pockets the liberals like Obama want to get in even deeper yet.
Funny, doesn't God ask for our first fruits?
That’s why the fair tax is the only way to go. A consumption tax hits all alike - both rich and poor buy things. The tax is only on new things, so if one buys used, there is no tax. There is no penalty for saving, or for hiring new workers. And to make Obama happy, Warren Buffet pays the exact same tax as his secretary.
On the other hand, a small business owner sells stuff, goods or services, for money. That money is considered income by the government. Even if he uses that income to restock items, pay staff, buy equipment, replace faulty equipment, pay insurance, etc, it’s still all income. Make a million on your small business but pay out $950,000 in expenses?
Guess what? You’re a millionaire