New Taxes

Sep 06 2019
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Free everything.  That is what we hear from Democrat candidates for the presidency.  It is silly season again, and they are in a bidding war to propose the most free stuff from government.  Free health care, free college, free student loan payments, free childcare, free health care for illegal immigrants, etc.  There are many more.  Remember the photo of all the Democrat candidates with their hands raised?  They are in favor of every spending proposal, period.

And how do they propose to pay for all this free stuff?  With your money.  Taxes, of course.  And when they say that rich folks can pay for it all, reach for your pocketbook, because they are after you, too.

Benjamin Franklin, over 200 years ago, said “Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes.”

Calvin Coolidge, 100 years ago, said “Collecting more taxes than is absolutely necessary is legalized robbery.”

And Ronald Reagan said, “The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

So, the Democrats are proposing several clever and monstrous schemes to separate Americans from their hard earned money.

First is Joe Biden.  He proposes to tax capital gains at the death of the owner.  This idea was even too radical for Obama to propose, but now Biden wants to do it.  Under this plan, a house would be taxed at up to 50% of its appreciated value, before it passes to heirs.  So, an American would receive the good news of inheriting Aunt Millie’s $300,000 house, but the bad news that $150,000 in taxes must be paid immediately.  Don’t have the $150K?  Too bad.  Sell the house.

Next is Ron Wyden, a senator from Oregon.  He proposes a “mark-to-market” system, people’s assets are taxed each year, based on increases in value.  So, if your house increases by $20,000 in a year, you pay the government half of that, whether you have the cash or not.  Don’t have the cash?  Sell the house.  Julian Castro likes this plan, also.  After all, the government needs the money, right?  And who decides how much a private business is worth each year?  You guessed it.  The government.  Can you imagine being audited by the IRS every year?  Wow.

And finally is the wackiest idea of them all.  Senator Elizabeth Warren of Massachusetts proposes a wealth tax.  In her scheme, the government decides how rich is rich.  And if the government says you are rich, you pay taxes on your wealth, regardless of whether it increased in value or paid any income, or whether you have any cash to pay the tax.  The liberals like this one best of all, because the amounts are massive, even for the government.  They are not discouraged by the fact that European countries have tried a wealth tax and gave up on it, because it was so difficult to enforce.

Probably the most difficult obstacle to Warren’s crazy idea is that pesky old Constitution.  You see, the Constitution says that any direct tax must be structured so that each state contributes a share of it equal to the state’s share of the population.  Those founding fathers were very wise, weren’t they?  They knew that some future free spending politicians would want to tax from one state and give to another.

So, the Democrats are in a bidding war, using your money to buy votes.  Somehow, they think the government should decide how much money each American “needs”, while spending the remainder as the government sees fit.  More taxes, more spending.  Meanwhile, the government collected more taxes last year than any year in American history.  And that’s not enough?

For alternatives, look to the GOP.  Our Republican leaders passed tax reductions through the Texas legislature, and our Republican governor signed them into law.  President Trump stopped all federal hiring, to begin draining the swamp.  He also has begun the long and difficult task of reducing government regulations.  These and many other actions have enabled the economy to grow, with opportunities for every American.

These Republican ideas are all about freedom, not free stuff.  They are based on the notion that you are the best judge of how to spend your money, not the government.

Scott S. Kramer is Chairman of the Republican Party of Kendall County.