The views expressed in any article published in this blog are the author's own and do not necessarily reflect the views of Joseph Foster or Bob Lupoli.

Tuesday, January 24, 2012

Tax Payers vs. Tax Consumers

Joe: I think this question on the blog, A Classical Liberal below is not talked about often enough. By income who are the Taxpayers and who are the Tax Consumers? It is not in the minds of many Americans since so many don’t pay taxes and they really don’t know how much is being paid by those with middle and higher incomes. In California Gov. Jerry Brown wants to raise our taxes. But consider this;

'Buffett Rule' a bust in California
The state's over-reliance on taxing the rich has been a disaster during bad times
• The top 1% earned 18% of California's income but paid 37% of the income tax.
• The top 10% earned 45% of the income but paid 72% of the taxes.

Brown wants to raise taxes no matter what. Why can’t he cut?

Orange County Register
http://www.ocregister.com/opinion/billion-335174-brown-state.html
In announcing his proposed 2012-13 budget, Mr. Brown solemnly intoned last week, "The state faces a 'wall of debt, pension liabilities, other increasing annual obligations and potential cost increases associated with the federal deficit."
In nearly the next breath he proposed increasing general fund spending 7 percent, to $92 billion from the current year's $86 billion.


Here’s the question and my post;

Tax Payers Vs. Tax Consumers
It is apparent to me that there is a fundamental conflict in our society between those who pay taxes and those who benefit from them.  Those who benefit from taxes include government employees and those who receive benefits from entitlement programs.

The Obama Administration is clearly on the side of the second group.  The President is using the differences between the two groups to strengthen his base and promote his agenda.  The problem is, what happens when the taxpayers decide they have had enough?

Stand up for America! - Seeing Red
Dear Classical Liberal: the answer is the size of government becomes smaller and offers its citizens less employment and smaller entitlement programs. I maintain as you likely do, this is a good thing.

The weight from the massive size of government has become too burdensome. In high school economics I remember being taught that government was only a small factor in the operation of the American economy.

How to change the system? The answer is not in either Party who are both so similar, both so corrupt, and easily swayed by money over patriotic duty. Going broke, experiencing failure may bring about a changing mind set. I don’t really know how the change would come about, hopefully the Tea Party or some other smaller government movement can influence this change. The ultimate goal being prosperity, the American system needs to get more people on the side of becoming taxpayers rather than tax consumers.

The more taxpayers we can get, then the more responsive government we can get because people will demand it spend less and become more responsive, and be less burdensome. If the percentage of tax consumers remains at 50% then this group will continue to demand more and more services, entitlements, etc. This is not the American way, it is the socialist, European way. To be clear we need more taxpayers but we need a drastically reduced government.

Bob Lupoli, Stand up for America! - Seeing Red

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