Every time the subject of cutting taxes comes up Democrats always define them as “tax cuts for the rich,” or “tax cuts for the wealthiest Americans.” It’s sickening, yeah, but they always get away with it, because Republicans never counter their arguments effectively.
While you can always count on Democrats to call for the rich to “pay their fair share,” the truth is that according to the IRS the top income earners pay the overwhelming majority of the entire federal income tax burden. By them complaining that the rich don’t pay their fair share it helps their other insane argument that tax cuts always help the wealthy because they get to keep more money. The truth of it comes down to simple math, something liberals and Democrats suck at. If an across-the-board tax cut happens, then those who pay more in taxes get to keep more money. It’s just that simple. Ten percent of $100,000 comes to more than ten percent of $45,000.
Enough about the rich and their taxes, because lower-earning Americans also pay taxes, and proportionally from their perspective, it’s a lot of money for them as well, and they pay taxes from the very first dollar they earn through to the end of their own scale.
There’s talk now of a payroll tax cut, which is regressive, a nearly 14% tax, most of which applies only to income below the threshold of $132,900. What does that mean? It means everything you earn over $132,900 is not taxed, so the rich only pay taxes on that first amount earned, and not the rest of their income. The same is true to low-wage earners as well, theoretically, but they don’t actually earn that much money, so all of their wages are taxed.
Democrats also love to virtue signal the rest of us by using tax policy as a moral message about how people become evil once they earn more than the average American, pitting one group of Americans against another in a never-ending class warfare endeavor to garner votes from the middle class on down.
They couldn’t care less that the top marginal rates have historically had zero effect on government revenues, whether 30 percent or 99 percent.
Republicans want to lower the top marginal income tax rate, because they understand it’s a government-created bottleneck on the economy. Democrats don’t care, because they want the economy to crash, thinking it will help get rid of President Donald Trump if the economy tanks.
Tax policy isn’t just about economic growth for Republicans and government revenue growth for Democrats to buy votes with new programs that make people dependent on government. Tax policy is also about the taxpayers themselves, especially looking out for the lower wage earners, and that’s why Trump is considering cutting the payroll tax.
The Trump administration has been working to get more people off government dependency by entering the workplace. If you’re able-bodied today and you don’t have a job, it’s not for a lack of them. The Obama administration made it comfortable to be unemployed, and literally created incentives to stay out of the workforce if you were at the lower end of the pay scale.
From the Washington Examiner:
Some will argue that a payroll tax cut will endanger Social Security and Medicare. We don’t buy it. Although the payroll tax is billed as a dedicated funding stream for these entitlement programs, we all know that Congress just spends the money how it likes. Entitlement reform is an issue that Congress will have to tackle, but it is a separate issue that has no more to do with this tax cut than it would with any other reduced tax or increased expenditure.
As we put it nearly three years ago: “A payroll-tax exemption provides a big bang for the buck: It helps poor people, it encourages hiring and it encourages work, all without creating a new government program.” Our opinion has not changed.
The Democrats are sure to argue against cutting the payroll tax, because they are against any measure that allows American workers to keep more of what they earned. Democrats are perfectly fine with people being dependent on government help. It’s what keeps them in office.
The coming payroll tax fight should be used to show the difference in philosophies between the Republican Party and the now radical socialist Democratic Party on how much each side wants American workers to succeed.
- White House Is Considering Payroll Tax Cut
- President Donald Trump speaks to members of the media as he meets with Romanian President Klaus Iohannis in the Oval Office of the White House on Aug. 20, 2019, in Washington, D.C.