Tax Cuts for the Wealthy

I have always been of the opinion that the money that I make is mine. When I sold lemonade on the street as a nine year old all the cash at the end of the day was mine.

John Locke said “that exclusive ownership and control of property is a right given by God to Adam and his posterity.” (Locke, 1980)

I firmly believe that when someone puts forth the hard work to plow the field, plant the grain, and harvest the crop, that crop is theirs. There are some circumstances that must be taken into account for the greater good of society. Hospitals, fire, police, roads and military are all examples of when a public good is served by a government taxing and then redistributing wealth to other projects that serve everyone.

Now, when a government taxes the wealthy and there is not an equitable distribution of services, then I have problems. You see, when someone pays for something that everyone can use the wealthy can use it too. For example roads, there is not a tax for roads and then the wealthy are prohibited from using those roads, everyone has the right. With social programs funded by taxation, the wealthy do not have right to use those programs and retain their property at the same time.

I believe that some of the programs that are in place are for the betterment of those who are less fortunate, I understand that. But when I was standing in line the other day and a woman was using cash subsidies from the state to buy a Slurpee, there is something wrong with that.

I don’t think that the state should be subsidizing Slurpee treats for the poor. I think that the wealthy should be allowed to retain their money and do something with it.

Now I know that some people would say the Slurpee purchase helped create the job that the store clerk had. While that may be true, it is short sighted. You see when we spend money we make a temporary increase in the revenue for a business, when the super-rich spend money they create business. Either they will invest it, put it in the bank and the bank will invest it, or they will contribute to a cause that will create jobs that are longer lasting than a single purchase.

If I had a million dollars I would start a company and I would employ people. If the government has a million dollars they will create a job that produces nothing that can be sold or traded. At the end of the day every private sector worker has created value at their company worked to increase the economic value of the company. A government worker is the opposite, they negate economic value in the entire economy.

I am not saying that all government is bad, but there are limits. Taxation of the wealthy doesn’t help the economic situation for anyone.

Because when the rich get poorer, the poor don’t get richer.

Bibliography

Locke, J. (1980). Second Treatise of Government. Indianapolis: Hackett Publishing Company, Inc.