Wednesday, July 22, 2009

60% Taxation Rate Is Looming For Some

That is what experts warn that New York City residents will face if Obama and Congress get their way on health care deform. The rest of us do not fall too far behind.

It's time for a constitutional amendment to clarify what was done in 1913. In that year an amendment was ratified that established an income tax. This amendment was necessary because the Wilson-Gorman law establishing such a tax in the previous century was ruled unconstitutional (Wilson was William L. Wilson of West Virginia, unfortunately.) At the time, voters were promised that only 2% of the nation's wealthiest would pay and even then, not that much.

The property and income of Americans need protection under law. That means that we need a constitutional amendment to prevent Americans from sliding into the lower standards of living prevalent in the more socialized countries in Europe due to heavy tax burdens. Let us have a simple constitutional amendment that says that no individual or corporation may be taxed by the federal government more than 25% every year. This includes income, capital gains, and other taxes. The only exception would be the duration of a declared war. Anything above that amount in peacetime is theft because it is redistribution of wealth.

A cap on the percentage of taxation gives the government an incentive to boost economic growth without inflation through policies that are free market friendly. That way they get 25% of an expanding pie, not increasing percentages of a shrinking one.

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