Donald Trump is constantly doing stupid stuff if you ask me. It’s not a question of politics either, I honestly believe he is a corrupt, dishonest and stupid man. Sure some changes might be political, but he seems driven more by hate, by the idea of undoing Barrack Obama’s legacy more than any ideological, political direction. He isn’t trying to help people (other than himself), so much as to hurt Obama, and the people who support Obama.
Recently in the news the Republicans have been trying to pass a tax reform bill. At it’s core the tax reform bill is not so much a reform bill as a tax cut. Another huge tax cut the likes that we saw under George W. Bush that saw deficits return and the national debt swell. Don’t get me wrong, there is true, tax reform that I can support. I have pages on this site where I talk about several tax reform proposals that I support.
Of particular interest to this post, and tying together the republican tax reform bill, and stupid stuff done by Donald Trumps White House is the story presented by Sara Huckabee Sanders defending the tax cut. Her story went on for several minutes, but the story basically goes like this:
10 Reporters go out for drinks each night worth $100, they pay for drinks in the same way as the tax code. So the first 4 drink for free, the 5th pays $2, the 6th, $4, the 7th, $8, the 8th, $16, the 9th, $20 and the 10th, $50. When bartender one day says the bill is now $80 per day, they fight about how it should be split with the first four thinking they deserve $2, and the 10th thinking he deserves $10.
The White House is presenting an argument that divides the country. Their argument is that those who are taxed at a lower rate are lazy and just want to take money out of the pockets of those who are more successful. Divide America seems to be the Donald Trump White House modus operandi.
The flaw in the argument is that the government isn’t a barkeeper selling drinks trying to make a profit. Rather the government serves other roles, sure they provide services like roads, police, fire, school, trade agreements and consular services etc. There are a number of services that people who pay little amounts of income tax take advantage of including: food stamps, health care, some roads, police and fire, but unsurprisingly those people probably don’t make much use of the trade agreements, or consular services. The government works to help make everyone a success. Those who don’t have $10 to pay taxes are able to use those $10 to feed their families or in some cases to start a business. Those people who are more successful, who have themselves used their $10 to start a business, or who’s parents been successful and provided money for them to start a business which thrives in the lawful, trade driven free enterprise country. A country that develops low income people into middle class so they have the education and training to work for your successful company, or so they have work somewhere else so they can buy your goods or services from your thriving company.
Those programs have to be paid for, and this isn’t about cutting individual programs, of financing new ones or specific deductions. This is the basis for the graduated tax system itself. Those who have thrived and become successful under the system are expected to pay more than those who are not successful and less successful. The graduated tax system is fair, because the very rich pay the same amount of tax on their first $20,000, $30,000 and $40,000 etc going forward. You might earn $1,000,000 but the tax you are paying on the first $20,000 is the same as someone who only earns $20,000.
Next if you are earning $1,000,000 and you pay $20, in tax that doesn’t affect you much. Really after you’ve got your necessities paid for (food, shelter, clothing, care of family, medical) everything is a bit of a luxury. With $1,000,000 income you are well into luxuries, you would have probably at some point tossed out a $20 just because you felt frivolous. But to someone earning $20,000 that $20 makes a huge difference, it still doesnt’ get their necessities paid for, but it means they might get to pay the phone bill this month. It might mean some fresh food, or some medicine. Nobody’s perfect, don’t act like fresh fruit is a luxury, or that someone who smokes cigarettes shouldn’t be able to have faults, personal vices, or do anything but work harder, because that’s not how it works.
So please, stop dividing the country and do something for the good of the whole country.