There is an ongoing debate among people who know, that the personal income tax is not needed. It is hard to believe, for the average american to conceive of this. After all, there is the old saying that, there is only 2 sure things in life, death and taxes. But, at the foundation of this country taxes were completely abolished.
For the entire first half of this nation’s existance, there was no federal income tax. In fact, it was unconstitutional. Even after the constitution was amended to include an income tax, only the very very wealthy were taxed. It took 50 more years for that personal income tax to trickle down to be being collected of the middle class.
Now in 2013, under the Obama administration, that tax is now collected from the very very poor as well. We have come full circle, to where the American Revolution started. Everything that the early Americans fought and died for, are now being imposed by our very own government.
But let’s not add emotion into this debate. Let’s look at the facts.
The mantra Obama keeps chanting of rich people needing to pay their “fair share” falls upon very knowing ear among the rich. Although for 4 years he did not make good on his promise, the very first thing he did while taking his 2nd term was to up taxes on everyone, including the rich.
What the middle class and lower class do not understand, is that for the rich, globalism doesn’t just mean where you can do business, but where you can live. While the middle class move from state to state in search of better financial chances for taxes and jobs, so too do the rich, but on a global level.
The United Kingdom at first took a hard stance against the rich being able to pay lower taxes. But, after being advised that the rich not only would flee the UK, but also take with them all of their investment money, business creation and innovations, they changed their policy. In fact, with that consideration, the UK made is more advantageous, tax-wise, for the rich to stay in the UK.