Tax Cuts

February 3, 2011
By Vaughn Ferguson BRONZE, Lafayette, Colorado
Vaughn Ferguson BRONZE, Lafayette, Colorado
1 article 0 photos 0 comments

Taxes have always been a necessary burden on society. The people give a portion of their hard earned money to the government or pay extra for the commodities they purchase. However, in recent times taxes rates are higher than they have been under past administrations. This is a problem that needs to be remedied.

Some believe that lowering taxes would result in a lower tax income. At first glance this seems obvious, lowering the rates would of course result in lower income right? Wrong. In taking a closer look at the true economic situation the truth can be seen. By lowering tax rates on all businesses and people, it increases the amount of surplus they posses. In businesses, this results in expansions of the business and the hiring of more employees. These employees then pay income taxes on the money they’re being paid and spend more on commodities that they otherwise wouldn’t have been able to afford with their previous level of income so influenced by taxes. These taxes that are paid by the new employees in the myriad places more than makes up for the immediate loss of tax income by the tax cuts.
Historically this method has been proven true. Under the Reagan administration, taxes were dramatically lowered by as much as 40 percent from the rates of the Carter administration and the net tax revenue doubled from 500 billion to 1 trillion dollars.
Even with the evidence mounting and the historical impact of lowering taxes being blatantly obvious, people still refuse to see the evidence that is right in front of their faces. If citizens were to open their eyes to the truth of the matter, lowering taxes wouldn’t be a controversial issue, but an obvious fact of life.

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This article has 1 comment.

on Mar. 10 2011 at 10:19 pm
Treefiddy BRONZE, Tarzana, California
1 article 0 photos 158 comments

Thank you! I have been saying this for a long time and people do not seem to get it. When economically illiterate politicians say "we cannot afford to give tax breaks to the wealthiest Americans", forgetting already that the top 1 percent of tax earners pay 37 percent of the taxes in this country, while the bottom 50 percent pay nothing, it has always historically been shown that lowering tax RATES increases revenue. This goes back to practically every tax cut during the 20th century, including the Kennedy tax rate cuts, and the Bush tax rate cuts.

Back in I believe 2007, then candidate Barack Obama was asked by he favored increasing the capital gains tax when every time they lowered it, the government took in greater revenues. He responded that it was for reasons of fairness. That is the ethos of the political left in a nutshell. It doesn't matter that the so-called "poor" are better off, it matters that the rich are less rich. They hate economic growth and entrepreneurship.

Last week, Michael Moore becked a crowd of protesters that the money of the rich is public property, and that we need to take it back from them. Well, I don't know about you, but I have never been employed by a poor person. I do not despise sucessful people; I encourage it! It is a child-like mentality that people hold. Socialists and all the wacky redistributionists alike need to grow up.


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