RiverRobb's Blog

Just another WordPress.com site

The Death Tax and other Government Ponzi Schemes

leave a comment »

Death to the Death Tax! It should die and die quickly. The real problem with this is that the law has become immoral in it’s purpose, and the taxes collected have become part of the greater Government Ponzi scheme.

So we’re on the same page a Ponzi Scheme is defined by Wikipedia as “a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned… The system is destined to collapse because the earnings, if any, are less than the payments to investors.” Is that not EXACTLY how Social Security operates? Both of my parents passed away prior to collecting Social Security. Were their contributions doled out to my brother or me? No. In this case the government wins. They are allowed to keep money and give it out to someone else. It is also the best case to be made for privatizing Social Security.

The Death Tax is perhaps the most immoral transgression in which this or any government could engage. Money is earned, taxed and the profits of monies left over are subsequently taxed. If an estate accumulates enough money, investments are made either in property or stocks and the profits of those investments are taxed. So when someone has accumulated significant wealth, how then should they be penalized? How should the government be allowed to steal money that is earned honestly and legitimately from the heirs of that estate? Should the government encourage or discourage the accumulation of wealth?

In reality, government should encourage the accumulation of wealth. Why? Money in private hands in any form stimulates economic activity. Someone with wealth will buy things… cars, houses, boats, motorcycles, trips , vacations etc. If they don’t buy things and become “greedy” and choose to hold on to their money, they leave their funds in the bank to earn interest. The interest rate is so low though, the return on that money is very slight. However, bankers use that money as collateral to loan to other bank customers to buy houses, cars, refrigerators or just about any thing for which someone would need to borrow money. Home equity loans, lines of credit and credit cards are all backed by money on deposit in their banks.

The loony left or as I call them the “caricatures of stupidity,” deride the rich for buying their yachts and airplanes as being greedy. Are they right? Of course not. How? There are long lines of manufacturers of parts for expensive cars or expensive yachts. The people who build them stay employed. The manufacturers of the parts for both stay employed. The parts houses that stock replacement parts for both stay employed. Paint manufactures and painters stay employed and so on… Get it now? Purchases stimulate economic activity regardless of what it is. Penalize the wealth to the point they stop buying yachts and cars, the manufacturers lose employees and go out of business. All those employed supplying parts and labor for these purchases stay employed thus encouraging more economic activity. The definition of trickle down and you can see that it has the potential to work and work well.

Do I want poor people to have more money? Yes, absolutely! Do I want the wealthiest Americans to have less? Absolutely not! Why? Those are the folks who invest money, creating jobs for everyone. Most small businesses who create most if not all local jobs, are in the top 1% of income earners; those who make $250,000 or more. Realize that there are only 310,000 people in the entire country who make that much and are responsible for creating the majority of jobs in the country. Do you really believe those people should be punished for being wealthy? Not if you’re smart.

Democrats have decided to purport that the rich are taking money from your kids and grand kids. That the rich wanting to keep their money is taking away from someone else. They don’t understand economics 101 at all. The economy is not a zero sum game, in that someone does not have to lose for someone else to win. We can all win and do win when the economy grows. The only way for the economy to grow is for money to stay in the hands of the people and out of the hands of government. Why did the economy fail under Dimwit 43? Because it stayed in the government and not as much in the hands of the people. It’s exactly why Obama has failed so far. He doesn’t understand anything economic; except the Stalinist/Marxist/Socialist mantra of social equality through punitive taxation. It’s working in China at present, but can anyone say they want to live that way? If I’m allowed and anyone else is allowed to opt out, then I’m all for it.


Written by Robb

December 10, 2010 at 6:07 pm

Posted in Politics

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: