There is always a debate in congress or around the water cooler about taxing more or taxing less. After all, government and life is about choices. You would think that the result is to get more (tax more) or get less (tax less) but that is not the result. You can sometimes actually get more money by taxing less. And sometimes you get less when you tax more.
So you have to ask…. What is the motive? The Democrats are demonized as “Tax and spend” and are associated with higher taxes. The Republicans like to say they are for less tax. So are the democrats dedicated to taking less of your money (by raising tax rates) and the republicans aiming to get more (by lowering tax rates)?
I think the dilemma can be solved by this: The representative and senators always want to “give something” to their voters. How best to do this. The democrats way or seeming to tax and then spend is more rational, even if it does not always work. The Republicans way is to reduce taxes, thus stimulating growth, and in turn get more tax money. Then they can give more to their voters. However this is not rational, even if it does work.
So the premier way is to raise taxes and then institute the “gift”. That seems rational (even if it might not be). The problem is that the gift stays in place even if the “raise taxes to pay for it” does not work.
So either way we have rising “gifts” and because the Democrats way seems logical we get less and less money with more and more “gifts”.
The Republicans have a tough row to hoe. That is to explain to all that taxing the rich (who pay most of the taxes) is good for the less rich. Let’s see if history can trump the surface logic.
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