The government should give more money to people who earn less, because the poorer the person, the faster they spend their money.
And the spent money goes to those who own businesses.
So the rich still get the money anyway.
Which get taxed away from them, so the poor pay all the taxes. Have I got it right now?
The tax system is actually fuelled from the dollars we spend which pays the gross wages, and investment returns to individuals who are the ultimate purchasers of goods and services and hence the payers of all taxes.
We spend "disposable income", (i.e. "aftertax" income) which finances all income that is taxed. Viewing from the perspective of consumption dollars, where it is all generated, we get an entirely different perspective on what is being done to us. Between business income taxes and payroll taxes, the burden on citizen as reflected through higher prices, lower wages, and lower return on investements are indeed horrendous.
The following article covers the mechanism on how the current Federal tax system propagates and is embedded into consumption expenditure.
DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation
The full impact of the federal tax system(taxes in gross wage/salaries & other compensation + business income/payroll taxes) added onto the base price(without taxes) of retail consumption goods and services is 36% for federal taxes alone. Why? Because all wages and the taxes on them are paid for out of sales receipts to business,(i.e. consumption expenditure).
Federal tax revenues collected as % of current family expenditure = fed/(1-state-fed-savings) =
23.5/(1-.235-0.102-0.012) = 36.09%
If we add in the cost of federal tax compliance & enforcement, the percentage that truely represents the burden on the family due to the Federal income payroll tax system increases by nearly 55% of tax free prices.
Where Have All the Dollars Gone?
How the government robs Peter to pay him back.
By James L. Payne, Reason Magazine February '94When the overhead costs are added together, (24 percent compliance costs, 33 percent disincentive costs, and 8 percent other costs), they total 65 percent of tax revenue.
Current total Federal tax revenues are about $1900billion, more than $1,000 billion additional dollars are added on onto consumption prices due to the business costs of complying with the federal income/payroll tax laws.
Percent total current federal burden (taxes + compliance costs) of consumption dollars = 36*(1900+1000)/1900 = 54.95% economic burden added on to base retail prices.
Reduce the taxes on business and simplify them in any way possible ultimately means a lower price and higher standard of living for the citizen. Since the poor spend the most in relation to their income, obviously the poor benefit the most from tax reductions for businesses.
And the spent money goes to those who own businesses.
So the rich still get the money anyway.
Ahh. The rarely heard "trickle-up" theory of economics. Ranks right up there with the "spit-in-the-wind" and "give-the-man-the-fish" methods that have worked so well in places like Romania and North Korea.