LETTER TO THE EDITOR:

Taxing the ‘rich’ shortchanges the economy

Jay Carr, Henderson

Sat, Jun 7, 2008 (2:04 a.m.)

An editorial in Friday’s Las Vegas Sun (“Tone-deaf economic policy: As average Americans struggle, Bush seeks permanent tax cuts for the very rich”), reflects your ignorance of basic economics and the principles that foster sound economic growth in this country.

Historically, the liberal economic position calls for higher taxes to support higher spending. Liberals think this is what grows our economy. That’s baloney! It never has and never will.

Their promises for economic growth are empty. The key to economic growth in this country is capital formation. It is predominantly small-business people and entrepreneurs who take chances to build businesses, create capital and jobs that drive our economy. This is what generates wealth and incentives for people to succeed.

Increasing taxes on these so-called “rich people” is not the answer.

In fact, in 2005 the top 5 percent of income earners (adjusted gross incomes exceeding $145,000) paid 60 percent of all federal income taxes! How much more do we want to tax the very people responsible for our economic growth?

Tax policy that encourages capital formation and government policy that discourages excessive interference is what has driven our economic engine through history. Excessive spending, higher taxes and excessive government regulation retard economic growth.

I’m tired of listening to uninformed economic liberals promoting higher taxes on the “rich” to support their spending programs when they don’t have an understanding of basic economic principles. You seem to have never seen a Milton Friedman economics book, never mind read one!

It would be beneficial to all of us if we would hear less about raising taxes or increasing spending and more about encouraging economic growth, which benefits every citizen in the United States. As the adage goes, “ignorance is bliss.”

Discussion: 4 comments so far…

By LV_Tom

6/7/08 at 10:03 a.m.

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The main education failing in this country is that most people are functional illiterates when it come to economics. You cannot grow the economy by government taxing the producers.
By JohnF

6/7/08 at 12:06 p.m.

Suggest removal

Then why is it that the economy is foundering now that tax rates on the wealthies portion of our lower than they've been since the Hoover administration?

"You cannot grow the economy by government taxing the producers." This is the usual supply-side argument, but the reality is you can't grow the economy unless there is demand for consumer goods and services. You can give the producers all the money you want, but they won't produce anything unless people have money with which to buy their products. That's why the economy is floundering now, even though the wealthy are doing quite well, thank you very much.
By odeman

6/7/08 at 9:07 p.m.

Suggest removal

We build houses that are too big and pile them high with trinkets and junk, which we paid for with plastic. Same with those overgrown pieces of metal we park in the driveway. We don't need more economic growth that allows us to accumulate and waste more junk. We need to pay our bills. The "sound" economic growth that was alluded to was built on a mountain of credit by both the government and individuals. If the letter writer believes it's OK to not pay your bills, like the government and those foreclosed homeowners, I suggest he find himself a cardboard box to live in as he will no doubt be foreclosed on very soon. There are many economists who say Milton Freidmans ideas are pure crap, but the letter writer choses to ignore that. So who is the illiterate? What's really funny is a large chunk of that "capital formation" is not going into factories or developements, but into the trading markets so that the Wall Street crowd can get rich shuffling papers and running up the prices of most everything, while the little people who keep this country running have to pay higher prices for everything.
By azsk8fan

6/28/08 at 7:44 a.m.

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Here's a (not so) novel idea - how about we have a set percentage for taxing people - rich or poor - married or single - why should single people pay at a higher rate than married and why should rich have access to loopholes not readily accessable to the middle class or poor? I realize taxes are a necessary evil but this Country gives so much away to other countries, to illegals who don't belong here, to people who are too lazy to get a job - the list goes on. Anyone who says there is no work can always get a job as a security job as long as they don't have a criminal background and can pass a drug test - the pay might not be the best but it's a JOB folks - it will help pay the bills and the Security Companies are ALWAYS hiring - trust me I know!