The Threat of Taxes on Innovation

When the founding fathers were writing up the US Constitution, they were truly shaping the future. Generation after generation would revere this document and respect its rules to the utmost of their ability. However, over the years our Government has overstepped it’s boundaries and is beginning to infringe upon our God given rights. In terms of “…the right of the people to keep and bear Arms…”, its almost impossible to purchase a gun in some states. If you can, there is a whole series of documentation and waiting before you can pick it up. Putting this and many other infringements aside, lets look at the subject of “economic inequality” and how destructive it is.

When we say inequality, almost everyone will agree with Amendment 14, (Section 1) “No State shall…deny to any person within its jurisdiction the equal protection of the laws.”. However, when people say that America needs “equality of wealth”, they are really saying that they want another communistic society to rise. Remember the phrase, “To each according to his ability. To each according to his need.”. This also reminds us of another phrase everyone likes to defend, “without taking money from the rich [taxes], the poor won’t be able to survive”. This is what we might call ‘leveling the playing field’. Let me give you an example.

Imagine that we have a school filled with a few dozen students, who have grades ranging from high As’ to low Cs’. The teacher begins to feel sorry for the 30% of students that get really low grades, although they do not try very hard to do better. He concludes that lowering all the grades to a low B would make the C students feel as if there was not as big of a gap. Is it morally right to push successful people down to compensate for those who don’t work as hard? Of course not. Then why do we think taxing the rich and giving that money to the poor is also moral. How do you think rich people became rich? Almost all of them achieved their goals through hard work, financial risk, and a good understanding of the business world. If you start taking their success away from them, there will be no incentive to be successful. Less people will invest and risk losing their money, because there won’t be as much left over to do what they want with. Without new businesses, the amount of new jobs will suddenly plummet, making the poor even worst off. Any businesses that are able to maintain themselves will monopolize the market, driving prices sky high for everyone (the rich and the poor).

You may think that this is the time when the government will step in and rescue these failing businesses. Wait…they started the problem in the first place. So, as we can see, trying to level everyone’s bank accounts just creates a domino affect on the whole economy. This is only the beginning of what happens when you mess with the free market.

Advertisements