Why Economic Recovery Is About Taxes

Had a liberal encounter of the tax kind the other day. Addressing the Left’s refusal (or possibly inability) to understand why increasing taxes are not the way to go if you want to stimulate economic activity. It started over a proponent of the administration’s taxing those financial institutions that had paid back the ‘bailout’ money that they were given.

In the liberal mindset, if you oppose that, then you’re in the pocket of Wall St.. Forgetting for a moment the Robin Hood aspect of the tax, and the unequal application of the tax, I answered that logic with a short quiz. The guy’s, or girl’s, name was Anonymous.

Anon. Below are some multiple choice questions to consider.

Income is generated by:

1. Private enterprise

2. Government

Along the same line. The money that government gets via taxes comes from:

1. Private enterprise

2. Government

When government takes money out of the private sector via taxes, what effect does it have?

1. Takes money from their business.

2. Puts money into their business.

The economy is boosted when:

1. The government takes money out of the economy via taxes and spends it as it sees fit.

2. The government leaves as much money as possible in the private sector to be used by the private sector to spend as it sees fit.

Money generated by businesses belongs to:

1. The business owners and investors.

2. The government.

And one TRUE/FALSE:

Capitalism pays for Socialism: T/F

Depending on how you answer these questions should explain why it is always taxes, taxes, taxes that effect, either negatively or positively, economic activity, AND whether the form of economic system you prefer is free-market capitalism or some form of socialist/fascist amalgamation.

If you prefer the latter, then there is this thing called the Constitution and the Bill of Rights that must first be abolished.

2 thoughts on “Why Economic Recovery Is About Taxes”

  1. “That’s where the city and county can help. And there’s not been a greater need for this kind of help in decades.”

    From your piece in the pnj today. Good article, you could have gone further with it, and it would have been a great article. Namely the approximate amount of just some of the fees that will be incurred by all of the different agencies, but still a very good piece, especially right now.

    I copied that particular quote from your piece for a reason, though. Taxes are why we have those city and county offices, Ross. I do believe in taxes, progressive taxes, too. I do not believe in taking from the rich to give to the poor. I believe in everyone paying their fair share. That has not happened in this country for a very long time. The rich will always pay less in taxes, they form LLC’s and stash their money in offshore accounts, while folks like myself and my husband will always end up paying the costs for city and county offices that perform much needed services for them, as well as the poor.

    Just wanted to let you know that while we differ in our political opinions I am no supporter of the Robin Hood approach

  2. With all due apologies to Robin Hood, that comparison was not as accurate as it could have been. The money he took went to the poor. The money Obama wants to take will be for the labor unions, Nebraska, and Louisiana.

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