Economic Victimization - A Fairy Tale

"By adjusting the top rates and reducing windfalls paid out to some of the wealthiest individuals in the nation, we can help restore a sense of equity and fairness that is critical to the success of our voluntary tax system."

- Charles Rangel, Chairman of the House ways and Means Committee

Equity and fairness. Life isn't fair, yet we are constantly bombarded with rhetoric that we can make it fair if we just spread the wealth around. In other words, if you are born into a rich and affluent family, then it stands to reason that you will go through life being rich and affluent. If you are born into a poor family, then logically you will be poor throughout your life.

And this message of economic victimization, that has been embedded into our daily lives, is a fairy tale; yet, those who trumpet this message, are the very people that think that government is the answer. Their message is one of gimme. You, who has become successful, doesn't deserve all of your money that you earned through determination, sweat and grit. No, you must give some of it to me, even though I am fully capable of working and has a fair shot of trying to run my own business, though I don't want to because I am lazy and would rather leech off of others.

This theme, that has been growing on a daily basis, basically says that everyone is to blame for their economic troubles, other than the man or woman in the mirror. The system is out to get them because they are either black, gay, female or some other minority and they are not given a fair shake, so why bother even trying.

If you are a liberal progressive and believe this tale, then ask yourself a serious question. If you say that many people in America can't achieve the American Dream, then how did the 400 wealthiest in 1982 drop to just 32, only to be replaced by 368 new wealthy people? Look it up on the Forbes 400 list for 1982 and follow it to today's list.

Nowhere in the Constitution does it say that every American is guaranteed success and happiness, it only guarantees that you can pursue them on a level playing field. The Constitution also doesn't guarantee any equal results if you attempt to start your own business or the outcome of a job. And no, the 'general welfare' statement in the preamble does not mean that the government is required to give you a job, that statement means limited government. James Madison explained the general welfare clause is neither a statement of ends nor a substantive grant of power. In other words, limited government. It is a mere “synonym” for the enumeration of particular powers, which are limited and wholly define its content.

Rather than stepping aside and allowing the free market to run its course, the government seems to be Hell bent on its destruction by making rich people poor and poor people rich. Taking over GM and the banks and bailing out every company that comes to them with hat in hand and with a sob story, we are witnessing an explosion of government expansion that FDR and his failed policies would be worthy of.

Our government leaders have gotten us into trouble by increasing our nation's debt to nearly $12 trillion, handed out $2 trillion to corporations and banks, which has ultimately done what? Put each of us in debt to the tune of $300,000 plus dollars which has placed generations of our unborn progeny in debt.

So, if you're one of those people that shouts accolades at the TV when a CEO of a big corporation gets the screws put to him, then let me ask you a question: "Has the demise of said CEO improved your livelihood? Has it increased your salary? Has it put more food on your table or more gas in your car?" If the answers to these questions are a resounding no, then I can only conclude that it makes you feel all warm inside when someone that is successful gets railroaded and ruined, whom, by the way, creates the very jobs that are desperately needed.

If you are one of those people that think America's wealthiest don't shoulder the burden of taxes then you would be wrong. Consider that in 2006, the richest one percent of American's paid 39.9% of taxes and the top ten percent paid 71%. It is also noteworthy to add that the bottom fifty percent paid less than 3% of income taxes. In other words, Americans in the top fifty percent paid 97% of this nation's income taxes.

Below is a tax table based on a 2005 CBO study

	Share of pre-tax income	Share of individual income taxes
Top 1%	18.1%	38.8%
Top 5%	31.1%	60.7%
Top 10%	40.9%	72.7%
Top 20%	55.1%	86.3%
Bottom 20%	4.0%	-2.9%

According to the 2005 effective tax rate on an American in the lowest income bracket was 4.3%, for someone in the middle class it was 14.2% and for the wealthiest .01% the effective tax rate was 31.5%. So, based on the 2005 study, the tax rates do not favor the wealthy and as a recent CBO report has stated, "High income households have a disproportionate share of comprehensive income and pay a disproportionate share of federal taxes."

And before you shout out that the payroll tax is what hits the poor the hardest, you need to consider that the Tax Policy Center (ran by the Brookings and Urban Institutes, two liberal think tanks) concluded that that the richest 1% still pay 27.5% of the total income tax burden in America, however, the bottom 20% pays only0.4%. I had to get someone to explain it to me, if you understand it, then click here.

One thing that liberal progressives seem to conveniently forget is the EITC (Earned Income Tax Credit). This credit reimburses an employee, who is in the low income bracket, with a portion of their payroll tax. What this means is that we are already refunding taxes to the hard working families who struggle day to day. Which, incidentally, ensures that the tax system a progressive one.

Continued...

Revisiting the beginning statements of this article, if you are of the belief that politicians are always thumbing the forehead of minorities and they shouldn't even bother trying, then you are a victim of your own willful ignorance or the public school system. For instance, did you know that the largest demographic to make an 80% gain in earnings between 1980 and 2007 were African-American women and the worst group to make said gains were white men? Don't believe me? Then look at the Census Bureau's data.

If you are an employee of a small business owner, you need to stop and think for a moment that your boss who hired you is in your sights when you shout out that the rich need to sacrifice more to spread the wealth around. You say that the government should ratchet up their taxes to 50%, yet you don't stop to think that your boss is part of 2/3 of small business owners that you are decrying, which is the backbone of this countries economy. Oh, by the way, you are getting a paycheck from said small business owner. So, if you run your boss out of town by forcing him or her to pay more taxes, guess what you don't get?

As I close this article, I would like to point out a few things. You may be one of those people that cries out social justice and wealth redistribution, but, if you are looking for a job in New York and can't seem to find one maybe it's because the rich are moving out and people are leaving in droves. Liberal progressive leadership in Detroit has done nothing but destroy its livelihood. In 1950 it was rated as the wealthiest city in America, now it's the poorest. Read the articles below:

Detroit: The Triumph of Progressive Public Policy

What Ruined Detroit

Boobs Who Ruined Michigan Called In To Advise Obama

After you read each one of these, ask yourself if it's where this country is headed with this administration. Ask yourself if this is where you want to live if we keep allowing our leaders to take us down this road. Ask yourself if this is the country you want to leave to your children.

A country is typically measured by how many of its people are trying to leave to seek a better life. I have yet to see anyone leave this country to do that, have you? I don't begrudge anyone who is wealthy or is seeking wealth, except when they cheat, steal and lie to do it. Our government is doing all three.

What are you going to do?