Why should government take so much of the bread of our labor? Are we to be slaves? Can’t we just tax the rich? The answer is: not really. Ask yourself: from where do the rich get their money? The rich get their money from us. When we purchase various products, we pay the seller; and the seller delivers a product. How does government taxation compare? We give our tax dollars to the government, but what do we receive?
The rich must increase the prices for the goods and services they produce, to have enough money to pay their higher tax rates.
Remember, government increases the tax rates on the rich so, the rich have to raise prices to pay their higher tax rates.
After all, to most businesses, taxes are just another “cost of doing business.” Business costs are necessarily passed on to the consumer. So, (and read this carefully,) all people who spend money, pay for part of the increased tax rates on the rich.
How can that be, you might ask? The extra taxes on the “makers” are passed on to the consumers in the form of higher prices. If you consume, you are paying higher prices to offset the makers’ higher tax rates.
In the end, we all pay the higher taxes government assesses against the rich; those additional costs just make everything cost proportionately more.
Some solutions — just for starters
Government must see its job as enforcing Constitutional limitations on government scope and power.
Government should refrain from acts which are not at least based upon one of the “enumerated” powers in the Constitution. We cannot afford to let government tax more than it needs for legitimate activities; such as road building and national security.
Government should accommodate business.
Government must remove the burdens and obstacles it has placed along the paths of commerce. It should not only “just not raise taxes,” government should slash taxes. Remember, we, the taxpayers, have to pay those higher taxes on the rich. Government should slash spending, payrolls, regulations and laws that impair the creation of wealth and prosperity. The more government slashes, the more we, the people, will prosper.
Governmental frugality will help to produce prosperity.
Growing prosperity will create new jobs, even for the ex-government employees who will lose their unnecessary or unauthorized jobs. Of course, the reductions in governmental employment should be properly managed. Attrition and readjustments to market pay rates would be appropriate tools. The economy will flourish without unnecessary and destructive governmental burdens.
Free markets empower everyone.
And finally, we must start making things again and selling those items to the world. To do that, wages and prices must adjust. Remember Eddie Electrician and Pete Plumber? They were discussed in my column published on Oct. 31. In their world, Eddie and Pete used money to keep score of who gets more and who gets less. In a free and competitive economy, anyone can find a job. An inexperienced worker would be paid less to start. As new workers become more productive, their wages will rise. The more valuable new workers become, the more each worker will earn. Of course, competition must be fostered; and, governmental monopolies should be outlawed.
• Ahwatukee Foothills resident George R. Ferrin is a local attorney. For three years he was a civil structural engineer holding a Bachelor of Science in Civil Engineering from Arizona State University. For the last 30 years, he has practiced law as a commercial litigator focusing primarily on construction and engineering related cases.