Tuesday, May 22, 2012 | Privacy Policy
Exclusive: November 16, 2010 -
Another reason why higher income should not be overtaxed
Do some people abuse wealth? Yes. Are some people paid a whole lot more than what is fair? Yes (e.g. athletes, entertainers, real estate and money game opportunists, infomercial entrepreneurs, etc.).
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But here’s the problem in trying to stop those ills. It can be encapsulated in the popular phrase, “You don’t throw the baby out with the dirty bath water.” That is, if you try to stop greed and unfair pay (the “dirty bathwater”) by overtaxing ALL higher income earners, you minimize the incentive to take on the risk and do the hard work that creates high income.
And higher income is a necessary, built-in reward for the people who extend themselves to do the extra hard work and taking on risk. A person who gives more deserves more. And it’s nice that in our current system, a person has the option to choose if they want to extend themselves and reap the reward...or relax and not extend themselves.
If the income playing field were to be leveled … well, we’ve already seen how that turned out in every country that experimented with communism … extreme poverty, where people didn’t have the option to choose. And once those countries shed communism, the financial health of the general population greatly improved.
So with the many different experiments in how societies should be run that have happened on this planet, it is obvious that communism is one of the failed ones. Regardless of how a person feels about capitalism or whatever injustices that they might point out, the generally higher standard of living and productivity in capitalist societies has to be acknowledged. And included in that is the freedom to pursue any entrepreneurial inspiration that a person or group of people might have, which might end up benefiting many people.
Yes there are abuses of that freedom and of the system in general. But an overall evaluation shows that the “baby” is healthy. And there are inspired growth efforts that continually work towards making the “dirty bath water” less dirty. Therefore, conservatives are wiser to look at the bath tub half full, rather than how liberals see it as half empty and whine about the dirty bath water and try to use that as an excuse to chuck the whole system.
(Funny how many of the whiners are VERY rich – from the entertainment industries, sports, etc. But that’s because they have so much money that money means nothing to them. The only thing that means anything to them is their inner turmoil, which they then use their money to finance a psychodrama, with politics as the stage where they ground their angst. I explain that psychological and spiritual disease and how it’s reached plague proportions in my book The Plague Of Liberalism.).
And people with a LOT of money know how to avoid taxes, thereby not leaving liberals anything to redistribute anyway. They don’t lose … their employees lose. Why not let them keep what they’ve accomplished to reinvest in jobs and company growth? And there are many who do. Besides the economy abusers, there are many who are true servants and love their work and create great goods and services for humanity, which we all enjoy.
Therefore, we shouldn’t let high taxes push business owners to cut back their work force, or send their jobs and savings oversees. As was shown on the Glenn Beck Show recently when he had an audience of all business owners, many testified how they even went without pay and yet paid their employees, for the sake of the business surviving. I’m also one of them, because doing whatever it takes to create great products and services is much more inspiring and deeply fulfilling than making a lot of money.
Dennis Marcellino is the author of The Plague Of Liberalism, which is available at any bookstore or can be seen and purchased at http://theplagueofliberalism.com. All of his books, CDs and DVDs can be seen and purchased at http://lighthousebooksandmusic.com.