Cutting Taxes

Every citizen has a duty to pay taxes to the United States government. This is a noble event as it can fund the government to afford our defense and other noble things. We will not discuss what it pays for here.

We will always pay taxes. But tax regulations have changed over the history of the United States. The tax code has grown to be a huge document, and very complicated. There are permanent taxes, there are deductions, there have been temporary tax cuts that have expired or will be expiring over all the years.

Federal taxes significantly influence the economy. Federal taxes either help or stifle business, help or stifle consumers (us). The federal government (bound by the Constitution) is very limited in what it can do in the economy. i.e. the federal government can not legally decide how much people make, decide who has a job or not (unless it is a government job), can not decide the price of oil or any product. The only thing the government can do is provide jobs in the government at the federal or state level. The government should not provide government jobs to try to help the economy, because history has shown that providing government jobs hurts the economy because it raises the government overhead, requiring more tax money to fund them, and the jobs it creates do not produce anything which consumers can buy and those jobs obviously don't produce anything we can export to other countries. So the government can not really affect the economy except for 2 ways, having Greenspan change the interest rate and 2 deciding how much taxes people must pay.

Taxing the citizens should only be the minimum required to fund the government. Ideally the size of the government will be small so this burden is as light as possible.

Taxing the people should be fair to all. Taxes and cutting taxes are treated wrongly and there are many misconceptions of taxes especially in the media, newspaper and TV today. History has shown that when taxes are cut (even a little bit) that it significantly helps the economy. The media and others who have political agendas put out a lot of false hype that "cutting taxes" is wrong and bad, and they always immediately start talking about the "upper class" and how they need to pay their fair share. The truth of the matter though is that "cutting taxes" helps everyone. The biggest effect on citizens in this country of cutting taxes is the "middle class". There are so many people in this country who are in the middle class, barely making enough money to pay a lot of taxes, barely able to pay for things for their children and families. All of us want to live the american dream.

Ronald Reagan is the first illustration I like to think about for cutting taxes. When he cut taxes, this country benefited so much in the economy, there was huge job growth, there was a great economy, the stock market was able to grow, people participating in the stock market was able to grow. Many times when tax changes are made by a President, the effects are not implemented or felt until after the President leaves office. After Reagan the economy continued to do well.

The economy was good during President Clinton because entrepreneurs found innovative ways to work around some of the taxes President Clinton raised during office. Then other taxes from him were not felt until after he left office. So like I said, after the President imposes taxes and leaves office the press and media don't realize it's bad until after the President leaves office. So the media tries to claim that the economy was good during Clinton years because he raised taxes. That simply is not true. Then President Bush got blamed for the bad economy. But when President Bush cut taxes, the stock market the same day skyrocketed and the economy started getting better. Then when families started getting checks of real money, they immediately used that money. That worked, the economy got very strong, unemployment low.

It's just very simple and common sense. When you increase taxes, then people have less money left over. When people and business have less money, then they don't spend as much money. That means that businesses make less money both because people have less to spend and because they themselves have less. Therefore, it's a double hit to business and then businesses may have to lay off people, people will lose jobs. There will be less money for venture capitalists to create new jobs. It just hurts the economy in several ways. It suppresses the economy. When you lower or cut taxes, then it helps everyone. More jobs are created, people and families can keep more of their money and will spend more and buy more.

Let me tell you something else. When taxes are low that means people have more money right. More people have jobs. Well when more people have jobs and more people are making money, then when they pay taxes, the federal government receives more tax revenue. Isn't the goal for the federal government to have enough money to fund itself ? If that is the case, then the federal government should tax appropriately so that their funding is maximized. When President Bush lowered taxes, the government's debt significantly went down because they had a lot of tax revenue. The deal is when you raise taxes, then it results in job loss and people with less money. If there are significant tax increases, then people have no desire to earn more money because they figure the government will just take it anyway (which is sometimes true). Whether it is true or not, people feel that way. So anyway, it results in fewer jobs, fewer people working, fewer people paying taxes. So if fewer people are paying taxes, then that means less money fed into the federal government. So it is true through history that lower taxes means more money for the government and a better living experience for all, even the lower class and middle class.

Look at other countries. There are so many countries with high taxes, sometimes 30% or more. When you look at those countries, their economies are bad. The governments are in debt. Not a pretty picture. I would say that the United States has been such a great country because of lower taxes; We have a better standard of living because of this.

Another country, Russia, they just implemented a flat tax which was 12% or something like that a couple years ago (without any deductions). When they implemented that, it was a tax cut and tax simplification. That has shown huge success - a better economy and the government had benefited from more money. This is an example of fair taxation. A single percentage and they have had success.

I believe American Heritage also has a lot of statistics and benefits about cutting taxes also. If you'd like more information about this, please avoid the hype and false notions the media states and seek the real truth about the matter.