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Pro-Life | Pro-Gun | Limited Government | Lower Taxes

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Taxes

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Tax Cuts and Unemployment Benefits

I was recently asked to explain my position on extending the Bush tax cuts and continuing the federal funding of unemployment benefits: Tax policy is not spending. It is on the revenue side of the equation. Any theoretical reductions in revenue, as a result of tax cuts, are based on static analysis. That analysis assumes that changes in consumer, business, and investor behavior will not change. This is a fallacy. Therefore, dynamic analysis must be used. We know from history that tax cuts lead to economic growth. The best example is from the 1980s when Ronald Reagan convinced congress to enact massive tax cuts. Those cuts lead to an epic expansion of the economy. During that decade, revenues to the federal treasury doubled. Regarding federal unemployment benefits, it is clear from the 10th Amendment that the federal government should not even consider such spending. Furthermore, we know from dynamic analysis that when a government taxes something they get less of it. Likewise, when they subsidize something they get more of it. Therefore, logic dictates that subsidizing unemployment encourages and extends the unemployment problem. As an aside, I do not condemn the citizenry for accepting government welfare benefits. In my opinion, the government is at fault for offering benefits that violate the 10th Amendment. These types of policy decisions should be strictly within the domain of the states.

Social Justice

During a recent event, the topic of “social justice” came up: When most people think of social justice issues, it usually has to do with government benefits for the poor. Liberals like to feel good about themselves by being generous with other people’s money. Many feel that it is the "Christian" thing to do. As stated above, any federal benefits would be in violation of the 10th Amendment. Government sponsored redistribution of wealth is akin to sticking a gun to the head of a taxpayer, taking his money, and then handing it over to somebody else. I fail to see the Christianity in that. However, the Marxist philosophy is very clear. In my opinion, responsible social justice is when we as individuals and families voluntarily decide to generously contribute time, talent, and treasure to non-profit organizations such as churches, the United Way or a myriad of other worthwhile community organizations or simply act independently. The hierarchy for people reaching out for help should be as follows: 1) Themselves; 2) Their families; 3) Their churches 4) Community organizations; 5) Local government; and 6) State government. Ideally, the federal government should never be involved. (See the 10th Amendment). And local and state government should only be involved in a limited way (if at all).

Estate Taxes

Liberals have always appreciated estate taxes as a way to redistribute wealth. When pressed with the argument that it is a tax on wealth that has already been taxed, they retort that it is the heirs who are being taxed and not the dead person who has already been taxed. If that is true, then why does our society consider stealing from the dead the worst type of theft? Aren’t they just stealing from the dead person’s heirs?