I can prove that Tax Cuts will get us out of our Economic mess. People need to be confident about the solution to this problem, so that when things fall apart, the Left cannot convince people to give up the Constitution "because freedom didn’t work blah blah blah". This proof will use common sense and logic, so many Left Wingers may not get it.
If the Government taxed everybody at 100%, how many people would actually go to work? Answer: Not very many, the Economy would collapse. We could expect few people to go to work. Government would bring in almost zero tax dollars, so the Government would collapse. There would be starving in the streets.
If the Government taxed everybody at 0%, how many people would actually go to work? Answer: Assuming law and order could be maintained, the Maximum number of people would be working. The Economy would be roaring. There would be jobs for EVERYBODY who wanted one, including the handicapped. People would have so much money, that taking care of people in need would be easy. Private charities would flourish. But, since the Government would once again be bringing in zero tax dollars, the Government would not be able to do its job of protecting the Individual from having their unalienable Rights violated. The Economy to be less than it could be, as people would have to deal with crime when they could have been producing.
Somewhere between 0% taxes and 100% taxes, is an percentage of taxes which would generate the maximum amount of money for the Government. This is the Point of Diminishing Returns.
If taxes go below the Point of Diminishing Returns, the Economy will do well as long as the Government has enough money to do its job of protecting one person from another. If Government is NOT providing things with Government Handouts, the maximum amount of people will be working, creating the maximum amount of Prosperity.
If taxes go above the Point of Diminishing Returns, the Economy will start to recede, causing Poverty to increase and Tax Revenues to go down faster than the tax increase should have increased revenues. The Government is going to far towards making people give up, causing the Government to get less tax revenue than it would if taxes were lowered. If taxes are increased enough above the Point of Diminishing Returns, a depression will occur like we are in danger of today.
The Point of Diminishing Returns has been calculated to be somewhere between 13% and 23%. This 13% to 23% range includes the total taxation on the Taxpayer when all of the taxes are added together, Federal, State, County, City, Sales Tax etc. etc. If the Government has Handout Programs, like Food Stamps, it lowers the Point of Diminishing Returns towards the 13%, number by making it easier for people to be non-productive. Currently in the united States, the average middle class person is being taxed WAY PAST the Point of Diminishing Returns, which means that if the Government needs more money, Taxes MUST be lowered so that the Economy will create more wealth. Since the Government has so many Handout Programs, the Point of Diminishing Returns probably is below 18%. This means that Federal Taxes need to be below 10% in order to leave something for State, County, City and other local taxes.
Why isn’t Congress making a big deal about taxation being past the Point of Diminishing Returns? Is it because they don’t know or believe it? To cut taxes in order to increase Government revenue, you would have to be somebody who believed in the Truth of Economic Laws and Human Nature. In other words, you would have to be Wise -> Wisdom.
Whether our current Economic Crises is due to Blind Greedy Ignorance or Malice, it is Self Imposed, Ridiculous, and Unnecessary, and we could turn it around today with a LARGE tax cut. :dance:
So what are we waiting for?