Friday, June 27, 2008

How is the system unfair?

It continues to boggle my mind why liberals think that the current tax system is unfair.

Look at the numbers: the US clearly has a graduated tax structure. The top 5% of income earners pay fully 58.8% of all income taxes. And note that the average income tax rate on the bottom HALF of taxpayers is a mere 3.1%. Is there another country in the world where the bottom half of taxpayers pay income taxes at a rate of only 3.1%?

And yet, I ask you all to recall an item that has dropped out of the news cycle, but which is still highly relevant to the election. When it was pointed out to the Junior Senator from Illinois that every time the capital gains tax has been lowered, there has in fact been an INCREASE in government revenues, he said HE DOESN'T CARE. It's a matter of "fairness".

Seriously, when we already have a graduated system of taxation, adopting a tax policy which will arguably LOWER government revenues, in the interest of "fairness" - that is definitely not sound tax policy - that's nothing but hardcore liberal ideology, willing to sacrifice the economic health of the nation in the interest of unnecessary and unproductive class warfare.

Not to mention the problems with adopting a set of policies that will impede capital formation in the midst of an economic downturn. This is Economics 101. Grr - why is McCain not taking Obama on more forcefully over his woefully inadequate tax policy? I find this so frustrating.

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