Thursday, October 25, 2012

Trickle-Down Government Leads to Trickle-Up Poverty!

The Democrats for years have called the Reagan economic policies “trickle down policies”, implying that if wealthy people or small business people, were able to keep more of their money instead of it being taxed, they wouldn’t use it to create more jobs or to start or expand their businesses, they claim that the wealthy would just keep it for their own personal use. Really? If the policies of the Democrats to tax the wealthy or well-to-do, over and above what is reasonable and fair, the wealthy or entrepreneurs wouldn’t have any money left over to build or expand their businesses as the money would go to the government (and most likely be wasted).

Remember a few years back, the Democrats pushed through a tax called the “luxury tax” which was enacted as a tax on the sale of luxury items ($30,000 or more). Instead of “sticking it to the rich”, the luxury sales tax caused many people to forego purchasing items over the $30,000 threshold price tag. The unintended consequences were devastating. Companies that built and produced yachts, luxury cars, airplanes, R-V’s etc. were hit hard in the pocketbook and some went out of business with the result of thousands of workers losing their jobs and becoming unemployed.

People who are wealthy or well-to-do are not stupid, if they feel that they are “getting the shaft” they will “vote” with their feet or close their wallets, which is what they did after the “luxury tax” was enacted. After seeing the resulting hardship effects of the tax, the Congress repealed it, but a little too late for those companies that went bankrupt and for the workers who lost their jobs. So, liberal left-wing Democrats, be careful what you wish for, you most likely will get just the opposite.

Obama and his Chicago thug campaign team, are complaining about Romney’s $5 trillion tax reduction plan over 10 years as being unrealistic and favoring the top 1% of income earners. What Romney proposes is that ALL workers (rich and poor) get a reduction in their marginal tax rates, but to balance that off, he would close many of the loopholes and tax breaks that many of the wealthy now take advantage of. In order to make his plan revenue neutral, he expects that due to these tax reductions, many jobs will open up as businesses will start expanding and hiring, thereby, bringing much needed revenue back to the treasury. It is a win-win situation to get us back into the economic recovery that we should have had since the recession supposedly ended two years ago.

The Democrats idea of “tickle-down government” does result in “trickle-up” poverty which is what Obama is already pursuing and is expected to continue if he is re-elected.

Conservative commentary by Chuck Lehmann

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1 comment:

Neil Toomey said...

If ignorance is bliss, the Democrats must be orgasmic.