Only You Can Make America Great Again

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Status: Finished  |  Genre: Non-Fiction  |  House: Booksie Classic


America is great when Americans are united. Politicians and the media work to separate us with "identity politics". They are doing it again with the House of Representatives current income tax
proposals, This is a look at the major provisions of that law and why it deserves everyone's support.

Submitted: November 19, 2017

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Submitted: November 19, 2017

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Only You Can Make America Great Again

(The proposed tax law is a good place to start)

Only you and 150 million other Americans can make America great again!  It is the people, not the economy or the politicians that make a country great. America was great during the second world war and after 911. Why? Because we temporarily put aside the things that divide us and emphasized the things that unite us. We worked together to achieve a common goal that would help everyone, we did not try to get the most government benefits for ourselves, the way we are encouraged to do now.

A perfect example of this is the media coverage and political debate over the proposed new Federal income tax laws passed by the House of Representatives.  It assumes that there are only four questions the American people are concerned about, “What’s in it for me?” “How much will I save?” “How much will I lose? “Who saves more than I do?" These are not the questions of a great people, they are the questions of a self-centered people. Not even the greatest super computer in the world could come up with a tax plan that gives everyone exactly what they want. If politicians try to do it disaster is the result. 100 years of Communism is proof of that. In theory it was supposed to make all people economically equal. In the countries it was imposed upon it did, to the extent that that they all became economically improvised (except for the leaders of those countries).

All people are created with equal rights, not equal abilities. Some people are smarter than others, some are more energetic, some are greater risk takers, some are luckier. No amount of government interference can change any of that. What government should do is try to balance economic prosperity, not control it. Tax laws should not redistribute wealth that was honestly earned, but should seek to provide the less fortunate people with a reasonable standard of living without severely penalizing the people that provide the money for it.  I believe that the bill just passed by the House of Representatives, the branch of government that most closely represents individual Americans, is an attempt to do just that. I repeat, it is an attempt, it is not perfect.  Let us look at the main proposals.

There would be four tax brackets from 12% to 39.6%. The top rate would apply to couples whose income exceeds a million dollars. That is roughly $400,000 or more!It would be unreasonable to complain that they are not paying enough income tax. The standard deduction for a married couple would increase from $12,700 to $24,400. A couple in the 25% tax bracket would have their tax reduced by $6,100 with this deduction. The child tax credit would be increased from $1,000 to $1,600, and be available to couples earning up to $230,000, up from $110,000 now, another $1,600 reduced from their taxes. These are substantial reductions for the majority of people that do not itemize their deductions, typically households with less than $75,000 of annual income, about 68% of households.

About 30% of households do itemize their deductions, and they are the ones that would probably see an increase in their taxes (I say probably because tax specialists will always find loopholes in the law to increase itemized deductions). The proposed bill would eliminate deductions for state income taxes, medical expenses, mortgage interest on second homes and other expenses. 2% of households had zero or negative adjusted gross income, and were unable to take any deductions.

Yes, many people have a lot to like about this tax bill, so does business. The top corporate rate would drop from 35% to 20% next year. Only the domestic income of companies based here would be taxed. Most small business would face a top rate of only 25%. These changes would make business more profitable, but that does not mean that they hurt individual tax payers. Almost half of the people in this country own stocks, and they profit when business profits. This does not hurt the people that do not own stocks. Because some people gain does not mean that other people lose. The American economy is not a zero sum game. President Kennedy stated it this way, “A rising tide lifts all ships.”

We do not have to behave like a “zero sum” country, for most of our history we didn’t.  For hundreds of years people came here with little or no assets and used their abilities to create wealth. They did not envy others  who had more than they did, they united with station wagons that they built themselves  and used the natural resources that they found to build towns that became cities and states. They were not discouraged by laws that attempted to take this wealth and give to others who had not earned it. When attempts to make such laws were tried, they rebelled against them.

If you truly want to make America great again, you must regain the spirit and attitude that made it great in the past. You must acknowledge that everyone benefits when human knowledge and enterprise is set free and that because some people benefit more than others does not mean that someone lost. You should tell your elected representatives to stop voting as thought you were living in a zero sum world! Tell them to stop dividing us with “identity politics” because there is only a limited amount of wealth. Because wealth is not a cake with a limited amount of pieces to go around, it is an infinite universe just waiting to be found.

 

 


© Copyright 2018 Jack Hayek. All rights reserved.