How to end the class warfare argument
Let’s look even further.
According to The United States Small Business Association there are an estimated 27 million small businesses in America. These small businesses represent over 90% of employer firms. They also employ by most estimation well over 50% of private sector jobs, excluding agricultural and farm jobs. The heartbeat, pulse, and engine of this great country are in America’s small businesses. According to the USBA, 65% of all net new jobs were created by small business owners since 1995. Raising taxes on job creators doesn’t create more jobs, it eliminates them.
This is a 6th grade math equation folks. If you lower taxes on small businesses they can hire more workers. As a result less people will be unemployed and in turn more people will be paying taxes. This expands the economy and increases the tax base which liberals should feel good about. If you raise taxes on small businesses they can not hire as many people. This leads to higher unemployment and in turn a smaller economy as well as a much smaller tax base. If liberals want more people to pay taxes don’t you think it would be better to have more people working to increase the size of the tax base?
The truth is Democrats don’t want more tax payers. They want more dependents. The more people dependant on the government, the larger their voting bloc becomes. That is why Democrats and The President supports groups like Occupy Wall Street and oppose others like The Tea Party.
So how do we defeat the class warfare argument?
We defeat the class warfare argument by changing the tax code. According to Answer.com the number of pages in the Internal Revenue Service’s tax code is 71,684. Most Americans find it complicated and confusing. Many believe the tax code was created to intentionally cause confusion. There are so many loopholes in the current system an acrobat couldn’t swing through all of them in their lifetime. It is a system in need of major change.
Most Americans want a more simplistic tax code and dread having to file their taxes. The anxiety most Americans feel when they have to file their taxes is equivalent to the anxiety one feels when they have to go to the dentist or the doctor. The complexity of the forms, the fees associated with filing, and the fear of being audited by the Federal Government all lead to feelings of fear and frustration.
Class warfare is embedded in tax policy. If we change the policy we can eliminate the argument. There are many different suggestions on how to change our complex tax policy; however for the sake of length of this article I will only touch on three.
First is the Fair Tax. The Fair Tax, or The Consumption Tax would eliminate all taxes and create a 23% tax rate on consumption of all goods and services. It would eliminate income taxes, estate taxes, capitol gain taxes, social security taxes, taxes on Medicare, and corporate taxes.
According to Fairtax.org the income tax bracket most people fall into is 15%. All wage earners pay 7.65% of their income in payroll taxes. If you ad those two numbers up you get roughly 23%. Everyone would pay the same amount of taxes on what they consume not on what they earn. Since you would now get to keep more of your money the 23% consumption rate is effectively closer to 15%. The Fair Tax doesn’t hurt the poor any more than it helps the rich; and it doesn’t hurt the rich anymore than it helps the poor; thus ending the class warfare argument.
The next suggestion is known as The Flat Tax. The Flat Tax simplifies the current tax code because it eliminates all deductions. It also places a one size fits all tax rate on everything. Everyone would pay the same tax rate regardless of income; thus ending the class warfare argument. The Flat Tax would only apply to earned income, not capitol gains, dividends, investments, and interest. The fact of the matter is that Colorado, Illinois, Indiana, Massachusetts, Michigan, Pennsylvania, and Utah already use some form of a flat tax in their respective states.
Last but not least there is former Presidential Candidate Herman Cain’s 9-9-9 plan. The 9-9-9 plan consists of three main components. This plan would create a flat 9% tax rate on all businesses. Secondly, it would create a flat 9% tax rate on all personal income. And lastly, it would create a national sales tax rate of 9% on all goods and services; thus ending once again the class warfare argument.
According to an August 28th 2012 Rasmussen Poll, 43% of people said they would vote for a candidate who would tax only the rich; while 41% would choose the candidate who didn’t raise taxes on anybody. Another 16% were not sure. That is a disturbing number of people who buy into the class warfare argument. The good news is almost as many Americans do not. That means this is an argument conservatives can win.
I don’t pretend to know all the answers. I am not an economist and I don’t play one on television. What I do know is politics and strategy. The key to beating ignorance is through education. We need to educate people on the truth and defeat the left with the facts. Democrats tend to make decisions based on emotion and Republicans tend to make decisions based on logic. Making decisions based on emotion and not on logic usually carries severe consequences. In 2008 America made a decision based on emotion. In 2012 that decision will be based on logic.