Are you a Peter or a Paul?

George Rebane

‘When you promise to rob Peter to pay Paul, you can always count on the full support of Paul.’

Obama has promised to launch one of the biggest tax increases in US history, and since the supportive MSM own the words, it is all being sold under the banner of "tax relief".  The package is designed to bring the already faltering US economy firmly down to its knees so that no sheep in the flock will murmur opposition when the federal government makes its next moves to ‘save the economy and the American dream’.

We already have the second highest corporate tax rate in the world that is driving our businesses overseas.  Over half of our citizens pay no federal and state income taxes, and this fraction is about to increase when Obama’s scheme of rewarding government promoted behavior with “refundable” tax credits kicks in.  Get this, if the tax credit is $1,000 and you only pay $200 taxes, the government will send you a check for $800.  And if you pay no taxes at all, then you get a check for the full $1,000.  This will be a sinister and cynical re-ignition of the universal welfare programs that, along with the new strangle hold on the economy, will guarantee that the population of Pauls will surge to bolster the socialist agenda.

In the meantime, enough Peters are seeing the writing on the wall that says the government intends to essentially take as much as possible – ‘everything’ comes to mind – of what you have through their one-two punch.  One - they’ll raise your income tax rates through the roof because the Pauls will demand it.  Two – and even if you try to minimize income, they’ll tax your assets through inflation by speeding up the money presses.  But now the feds, both parties voting unanimously, have added a kick to the groin for good measure.

Ever hear of the Heroes Act - Heroes Earning Assistance and Relief Tax (HEART) Act, which provides tax relief for active duty military personnel and reservists – that the president signed into law on 17 June?  Well even if you did, I bet you didn’t know about the Exit Tax provision that was quietly taped to the back page.  It seems that enough Peters are beginning to leave the country that the government is now resorting to methods historically used by failed autocracies and creaking socialist states.

The new Exit Tax will cost you one third of your assets in excess of $2 million if you decide to turn in your US passport and head over the horizon.  By laying down this foundation, the government admits that its policies of exacting tribute from its more productive citizens is at a level that requires the building of our own Berlin wall to keep the Peters in.  And the Pauls eagerly await their messiah.   

   

Comments

[Mike McD]

George, this was one of your best blog entries ever. Paul doesn't know what he is giving up for the Peter sponsored (via a pistol in the hands of Uncle Sam) philanthropy. As a youngster (in my 30's) I am both petrified and depressed by our decent into socialism (slavery).

[Douglas Keachie]

I guess the firms that made 2.5 Trillion in sales this year and paid no naddy zip ZERO taxes, are not Paul's?

[Douglas Keachie]

Heck, I'm neither a Peter or a Paul, I'm an Impaled!

[David K]

From a layman's perspective, I simply see many of Obama's tax plans as a way to swing the "Trickle Down Economics" pendulum back the other direction. In theory, I can see where tax breaks towards the multi-billion/trillion dollar companies as well as the top 1% of wealthiest Americans SHOULD trickle down to the working class. But in our country today, I don't see this theory truly working. In an upcoming blog, I'd love for you to tackle these correlations for those of us who can't quite see the "big picture".

[BIG Picture for David K]

The best example of "the big picture" is given in Ayn Rands Atlas Shrugged and summarized well on Wikipedia here:

"Rand's heroes must continually fight against the "Parasites", "looters", and "moochers" ["socialists"] of the society surrounding them.

The looters are those who confiscate others' earnings "at the point of a gun" (figuratively speaking) —often because they are government officials, and thus their demands are backed by the threat of force. Some looters are following the policies of the government, such as the officials who confiscate one state's seed grain to feed the starving citizens of another state; others are exploiting those policies, such as the railroad regulator who illegally sells the railroad's supplies on the side. The common factor is that both use force to take property from the people who produced or earned it, and both are ultimately destructive.

The moochers are those who demand others' earnings because they claim to be needy and unable to earn themselves. Even as they beg for their help, however, they curse the people who make that help possible, because they hate the talented for having the talent they don't possess. Although the moochers seem benign at first glance, they are portrayed as more destructive than the looters—they destroy the productive through guilt and often motivate the "lawful" looting performed by governments."

Without Wealth Generators there is not wealth.
Thanks Rich!

[Mike McD]

Douglas K.
First, Sales are not earnings. Are you suggesting that companies start paying taxes on losses?

Second, if you are not a Peter or a Paul, who are you. I think only the 2 choices exist, can you convince me otherwise?

Third, don't forget that the gov's (local, state and/or fed) received tax revenues regardless of the spin put on the $2.5 Trillion of "untaxed sales".
Government agencies collect sales tax on much of the $2.5 trillion of sales. And payroll taxes via employee w-2 wages. And social security taxes on the employee w-2 wages. And medicare taxes on the employee taxes. And dividend taxes on any dividends paid by the corporations. And capital gains taxes on the sale of any stock of the underlying companies. In the eyes of our government corporations exist solely to put dollars into taxpayers pockets (you can't fleece someone with empty pockets).

[Steve A.]

Right on, George!! And you too, Mike McD!! A nation of Pauls is a scary thought... the antithesis of the American spirit of self-reliance.

[Russell Steele]

What happens when we run out of Peters for the Paul's to steal from. At some point, there will be more takers than generators of wealth. What then? This is the scary part of the story, and if more Democrats are elected we will only be accelerating the problem. Though Republicans are not with out blame for over spending our hard earned wealth in the hope they can capture more loyal Paul's in the voting booth. Shame on them all.

[Wayne Hullett]

I wonder if the states will try to start imposing their own Exit Taxes? It makes me glad that I moved to Nevada some years ago. There is something extremely satisfying about Californians coming here and paying my state income tax for me.

[Mikey McDaniel]

The Peter's of "Taxachusetts" are fighting (http://online.wsj.com/article/SB121919392595755303.html)and here (http://www.smallgovernmentact.org/); I have already sent in my donation to this great cause.

[Mikey McD]

Frederic Bastiat "Government is the great fiction through which everybody endeavors to live at the expense of everybody else." — from Government