They Never Learn...

In the past few months, we’ve endured the passage of the Stimulus package, the continuing saga of Cap-And-Tax, and now the soap opera that is Obamacare. The Obama Administration’s casual references to trillions of dollars in debt send chills down the spine. (Not thrills up the leg – sorry, Chris Matthews.)

When they are asked how they intend to pay for all of this, the only response is the old mantra, “Tax the rich.”  They couch it in vague terms and attempt to mask the intent, but it is, as it has always been, the mainstay of Democrat tax-and-spend economic theory.  Time and again the fallacy of this approach has been proven, but the left continues down the same tired path. They ignore a simple truth, one which cannot be refuted by the most rabid liberal. It is best summed up in this series of questions and answers:

Q:       How did the wealthy get wealthy?

A:       They are the investors, the entrepreneurs, and the developers that make this country grow and prosper. They provide the goods and services that everyone needs.  They make their profits (Profit is not a dirty word!) by selling these goods and services.

Q:       So, if they make a profit, shouldn’t they pay more?

A:       They need to continue to make a profit. Otherwise, it’s pointless.  If they are forced to pay more in taxes, they will need to increase the price of their goods and services to offset that loss and remain in business. That means that the end consumer bears the brunt of any increase in the taxes on the so-called “rich.”

Q:       Well, if they can’t sell the goods at a reasonable
            price, shouldn’t they fail?

A:       And be replaced with what? If you drive these people out of business and essential goods and services become scarce, supply and demand will force the prices still higher.  Again, who gets stuck with the increase?  You do.

If you run through this with a liberal, you will find them grasping at straws to defend their side of the argument.  They will turn to government caps on profit, price controls, and the other ill-advised intervention strategies that have never worked and never will.  Eventually, what they will propose is nothing short of a move to socialism, which is exactly where this bunch is trying to take us.

Try this on a liberal or two.  It’s fun to watch them struggle with it.

--Tom Wells, 9/1/09