Lower Taxes to Increase Revenue


Thomas Jefferson said:

I, however, place economy among the first and most important of Republican virtues, and public debt as the greatest of the dangers to be feared.

The state of our economy has not been improved by the massive stimulus spending…most of which will happen right before the mid-term election.  Our nation’s public debt is the greatest it has ever been.  Why do We The People sit, election after election and turn a blind eye to the destruction of our viability as a free nation.

Think what you do when you run in debt; you give to another power over your liberty.

~Benjamin Franklin

The fact that we don’t know our nation’s history is causing us to relive it.  For instance, we’ve explored the benefits of lower taxes and the futility of raising taxes in the 1920’s.

A prime example of the benefit of lowering taxes can be found in A Patriot’s History of the United States: From Columbus’s Great Discovery to the War on Terror”>A Patriot’s History of the United States can be found by examining Andrew Mellon, President Warren G. Harding’s secretary of the Treasury,

Commissioned a study of why the wealthier classes had paid less and less in taxes as the government raised the tax rate on them repeatedly. The rich tended to invest abroad rather than build new factories and mills in the United States and then suffer from the 73 percent tax on any income from those investment.

After his study of falling tax revenues revealed that the amount of money gleaned from the upper classes had declined with each new rate increase, Mellon concluded that lowering the rates on everyone, especially the wealthiest classes would actually result in their paying more taxes.  From 1921 to 1926, Congress reduced taxes from 73 percent on top income earners and 4 percent on the lowest taxpayers to 25 percent and 1.5 percent, respectively, then down even further in 1929. Unexpectedly, to everyone except Mellon, the tax take from the wealthy almost tripled, but the poorer classes saw their share of taxes fall substantially.  The nation as a whole benefited as the national debt fell by one third (from $24 billion to $18 billion) in five years.

Mellon’s tax policies set the stage for the most amazing growth yet seen in America’s already impressive economy.

~ Larry Schweikart & Michael Allen

A Patriot’s History of the United States

 

During his presidency, Ronald Reagan proved again that lowering taxes helps to fuel the engine of the economy as demonstrated by great economic growth that extended beyond his years in office.  Andrew Mellon had already made the case that if you raise taxes on the rich, their money will move off shore and out of reach of the greedy hands of government.  Enough is enough.

Until We The People insist on the Constitution being the foundation of our nation again Congress will never cease their continual attack on our freedom.  Our Founding Fathers never intended for government to regulate every aspect of our lives.  They would have thought passing the national debt from one generation to the next sinful.  We The People cannot look to government for answers.  We The People need to be self-reliant, innovative and free to succeed or fail.

Each citizen has a duty to demand accountability from our representatives in every level of government.  We The People need to step up and solve problems rather than looking to government to do it for us.  Get involved in politics, because unless we are vigilant, our republic will be no more.

When asked what form of government they’d given us, Benjamin Franklin replied:

A republic, if you can keep it.

What are you going to do about it?

God Bless America!

Advertisements

1 Comment

Filed under American History, political

One response to “Lower Taxes to Increase Revenue

  1. Pingback: Founded On The Rock | Cari V. Ray

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s