Saturday, September 22, 2012

Progressive Tax Rate Treats Citizens Unequally


By Douglas V. Gibbs

The liberal left wants to tax the rich more heavily to make them "pay their fair share."  The democrats also discuss equality, and in fact often make equality a center-piece of their platform.  So, one must ask why folks that claim they are for equality are willing to treat people unequally when it comes to taxes.

The progressive income tax rates have become a system in place the politicians have used to campaign for office. Two schools of thought have emerged regarding the progressive tax rates. Democrats tend to support increasing taxes on wealthier Americans, thus further widening the gap between the lower tax rates and the higher tax rates; Republicans traditionally support reducing that gap, arguing that the rich are the producers and achievers of society, and such a tax break for the richer members of society encourages economic growth.

The ten steps to creating a communist system from the original ten planks within the Communist Manifesto written by Karl Marx in 1848 include a progressive tax rate. The second plank of the Ten Planks of The Communist Manifesto reads: “A heavy progressive or graduated income tax.” That communist step to create a communist society comes right after the abolition of private property, and right before the abolition of all rights of inheritance.

In step with Karl Marx, widening progressive income tax rates redistributes more money from the upper income to the Middle Class.

Historically, reducing the top marginal rates, such as Presidents Kennedy and Reagan did, spurs growth. Lowering the top rates gives the top earners an incentive to invest in innovation, expand their businesses, and spend on consumer items, all of which grow the economy and increase revenue.

Raising the top brackets creates uncertainty, and disincentivizes the producers and achievers from investing, and growing their businesses.

From the point of view of the Constitution, progressive tax rates does something else, as well. Expecting one group to pay a higher percentage than another group by the government is unequal treatment of the citizens. Not only is widening the gap between the tax rates a method to redistribute income, capital and benefits (like health care) from the upper income to the Middle Class and poor, but the unequal treatment of the different income classes is in violation of the Equal Protection Clause of the Fourteenth Amendment.

The Equal Protection Clause was designed to ensure the emancipated slaves were treated as individuals, and that these individuals were subject to the same laws as all other citizens. No individual or group could have special legal privileges, nor be treated unequally in the eyes of the law.

In an active redistribution agenda, wealthier Americans are being singled out, or are being treated differently than the rest of the population, because they are expected to pay a higher income tax rate. If the rate was flat across the board the rich would still pay more taxes by the sheer fact that they have larger incomes, so in reality it is not about paying their "fair share."

-- Political Pistachio Conservative News and Commentary

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