Let's get past the political rhetoric.
"NO new taxes on those who earn less than _____ " (Fill in the blank with any figure which makes you feel good).
The truth of the matter:
Deficit spending is a tax under a different name and it has a partner, Inflation, which is an additional tax under another name.
Deficit spending is a financial obligation ALL of us must pay.
The result of Deficit spending is Inflation, which is the cruelest tax of all.
"NO new taxes on those who earn less than _____ " (Fill in the blank with any figure which makes you feel good).
The truth of the matter:
Deficit spending is a tax under a different name and it has a partner, Inflation, which is an additional tax under another name.
Deficit spending is a financial obligation ALL of us must pay.
The result of Deficit spending is Inflation, which is the cruelest tax of all.
- Inflation steals our savings.
- Inflation causes the taxes on our property to grow.
- Inflation causes all our other costs of living to rise.
- Inflation shows up in everything from the cost of tires for our vehicles to the cost of a jar of peanut butter and the higher rates we must pay for our insurance and the price of fuel for our vehicles.
Some may not call the above items taxes, but if the government (by any means) removes money from my pocket and puts it into another individual’s pocket, I call that a tax.
Another one of those fallacious statements which needs to be eliminated:
"We will tax the rich and give it to the poor."
When you tax a corporation that corporation DOES NOT pay that tax. The corporation just passes the new tax to the consumer.
For example:
Taxes on the transportation industry increases the cost of the merchandise moved by that carrier.
Highway taxes are passed on to the consumer as a higher price for that commodity.
Fuel taxes are passed on to the consumer as a portion of the cost of that commodity.
The income taxes paid by the driver are passed on to the consumer. The increased wages the driver was given in order to cover his (inflation caused) increased cost of living is paid by us in the form of a higher price for those commodities carried in his truck.
Bottom line?
The final consumer pays all those taxes on "the rich”.
I don't know many rich people, but as a consumer, I pay every direct tax and a pile of hidden taxes the rich do. Those hidden taxes show up in the form of much higher prices for that which any of us purchase.
According to a tax study I saw a number of years ago:
By the time you walk out of the store with a loaf of bread there are 126 taxes on that loaf of bread.