Monday, May 31, 2010

High Taxes - Deficit Spending - Threat To Freedom

It is interesting that countries with high taxes also have high deficit spending and significant national debt. The Socialist Democracies in Europe and other parts of the world have both high income taxes and high Value Added Sales Taxes on most goods and services of 16 - 21%, yet many of those countries also have unsustainable debt. This is happening because entitlements and public employee unions are bankrupting these countries. Of course, the US is increasingly going down the same road and headed toward bankruptcy, as well.

This is all happening because elected representatives use the national treasury to buy votes primarily from those on the dole, those that pay no taxes at all and public employee unions that frequently place worker interests above state, or national interests. And, as taxes go up along with deficits, the vicious cycle usually results in higher taxes and more deficits because both retard economic growth and as such government rarely gets the income that was projected from the higher taxes in the first place. California is a good case in point. California has among the highest combined taxes in the nation yet state revenues continue to decline because people and companies are voting with their feet and leaving California. It has been happening for years. So California, more and more, is left with tax users rather than tax payers including illegal aliens; hence the reason California cannot get ahead of its deficit spending.

Like California and other countries, the United States is in this vicious cycle like never before as President Obama and the Socialists that control Congress are enacting new entitlements, pork barrel spending and bail outs that will result in Trillions of dollars in deficit spending and higher debt, if not stopped and soon. This is all being done in the name of one fictitious "crisis" after another, the drive to "transform" our nation into a European style Socialist country and the call for "social justice", code words for the redistribution of income.

One would think that American Socialists would see the end result of Socialist handiwork in the blue states in the US and Europe and run the other way; but their solution to the bankruptcy in Europe is to blame the private sector and enact more Socialist Schemes. In Socialist thinking, even though the lessons of history teach otherwise, it is free market capitalism that distorts the economy and causes misery, not big government spending, taxes and regulation that are a threat to economic growth and freedom. The only problem with this Socialist thinking, other than it is not true, is that the opposite has always occurred. Big government spending, higher taxes and more regulation always retards economic growth and causes a lower standard of living and less prosperity. Free market capitalism, with all its warts and boom and bust cycles, is the only way to economic growth and prosperity and ironically more government revenues to actually fund Socialist entitlements. Cutting taxes has always resulted in higher revenues for the government. Raising taxes has achieved just the opposite result.

And, perhaps most important, countries with high taxes, deficits and debt generally are less free. This occurs because as government grows, more and more bureaucracy is added to govern all aspects of life. Obama's HealthScare and CAP & TAX Plans will be the biggest government intrusion into daily life in the history of the United States, if not the world. Obama is also planning to federalize millions of acres of Western state land, to take those lands away from private sector use and gain more federal control in the states. In essence, this will be the Socialist blue states telling the Conservative red states what to do with their land. The 30 Plus Red states should say HELL NO to this land grab. In Nevada alone, the federal government already owns 86% of the state. The question is why?

Those who value freedom, prosperity and economic growth must take back our country in 2010 and 2012 by electing Conservatives who support free market capitalism, limited government, a balanced budget, term limits, lower taxes and less regulation, a strong national defense, real energy independence and health care reform, the right to bear arms, the sanctity of life and family values. Most important,we must elect Conservatives that support that Constitution, as written by our Founding Fathers, not as contrived by our current Socialist President, former Presidents, Congresses, or the Courts. We must take back our country by sweeping these Socialists out of office and making Obama a one term President. We can do it. We must do it to protect our freedoms and for the sake of our children and grandchildren.

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