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‘Carried Interest’: Let’s Not Increase Taxes on Our Economy’s Engine

Seton Motley | Less Government | LessGovernment.org

Always Even More Than Meets the Eye

Leftism is such an easy soundbite sell. It’s a gaggle of five-second one-liners that seem to make perfect sense – right up until someone applies actual thought to any of them.

One of the all-time favorites is – “Tax the rich!” (I’m fairly sure the exclamation point is always mandatory.) They’re rich, they’re evil – they should pay MORE!

But let’s now apply some actual thought to their fortune cookie wisdom.

The dreaded One Percent – pay nearly half of all federal income taxes. So they are paying “their fair share” – and the fair shares of roughly 150 million other Americans.

Then there’s all sorts of additional taxes wealthy people pay (that most of the 99% do not). Most of these taxes tax money – that has already been taxed as income (which I find to be particularly, additionally obnoxious).

Most of these taxes – attack the money that makes our free market system possible. Income taxes are awful and pernicious – but it is the taxes on big coin pools that are really an assault on our system. More

A Tax Cut – Should Not Include a Stupid, Economy-Debilitating Tax Increase

Seton Motley | Less Government | LessGovernment.org

It’s the Long Conversation
We’ve Long Needed to Have

President Donald Trump and the Republican Congress have both put forward tax reform plans that contain lots and lots of really great ideas.  They both simplify the code, eliminate some taxes, reduce the rates of others – and in general are geared to allow for vigor to return to our long vigor-less economy.

The fundamental element behind vigor in our economy – is coin.  The crucial component of capitalism – is capital.  And the ugly truth for Leftists is – only people that earn money have money.  And the people that earn more money – have more money.  The rich – have even more than that.

So you need all of these people – most especially the rich – to privately dispose of their capital.  Not have the government take it from them.  So as to fuel capitalism – and allow the reinvigoration to begin.

Capitalism works – in large part because of Adam Smith’s “Invisible Hand.”  Capitalism coin never stays put – it’s always on the go.  The Invisible Hand moves that money – all over the place.

To wit: A rich person buying a yacht – does more for a poor person than a thousand government programs.  Because – who sells the yachts to rich people?  Poorer people.  Who drives the yachts to the lots to be sold?  More, even poorer people.  And who builds the yachts to be driven to the lots to be sold to rich people?  Lots and lots of additional poor people.  And then there are the crews to sail the yachts, the repair crews to fix them, the harbor crews to harbor them,….

How do we know this?  Because in 1991 the Feds imposed a “luxury tax” on expensive cars, furs, jewelry…and boats.  Democrat Senators Ted Kennedy (Massachusetts) and George Mitchell (Maine) in particular crowed about the rich finally paying their fair share.  Except: More

Another Key Component of Good Tax Reform: Don’t Hike the Cap Gains Rate – End It

Seton Motley | Less Government | LessGovernment.org

At Parties – or by Political Parties

In the Left’s ongoing war against anyone who makes any money – the tax code is probably their best and most vicious weapon.  It is a multi-thousand page combination shot and machine gun – firing clouds of buckshot in fully automatic fashion.  Pummeling the private sector with endless rounds of lethal legalese.

A chief component of its anti-private sector effectiveness – is its complexity.  Nowhere therein is one page written – where fifteen will do.  This density serves (at least) two purposes.  It obfuscates what is actually required of its victims – and allows for all sorts of additional, stealthy assaults to be included in the overall attack.

The Left wants to extract as much private sector money as possible for (at least) two reasons.  Because they want to drain the capitalist system of as much capital as possible, because they loathe the capitalist system – and because they want to spend the coin themselves.

There are all sorts of lies told in this pursuit.  To defend their tax code ridiculousness – and call for even more tax code ridiculousness.  You are eminently familiar with many of them.  “The rich need to pay their fair share” – is an all-time favorite. More