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Posts Tagged ‘higher taxes’

The Truth About the Rich Calling For Higher Taxes to Fight COVID-19

Posted by M. C. on July 22, 2020

If the wealthy want to pay more to help fight COVID-19, they can choose to do so themselves. They don’t need government to force them.

Their real motive has nothing to do with addressing the pandemic, and everything to do with raising taxes to make government a bigger part of your life. If they succeed, the costs will fall not only on rich taxpayers but on everyone, because our liberty will be a bit more compromised.

https://www.economicpolicyjournal.com/2020/07/the-truth-about-rich-calling-for-higher.html

By Randall G. Holcombe

More than 80 wealthy individuals are petitioning for higher taxes on the rich to help pay for the billions in new government programs made necessary by the Covid-19 pandemic. This is petition is disingenuous at best.

If the wealthy want to pay more to help fight COVID-19, they can choose to do so themselves. They don’t need government to force them.

Many wealthy individuals already have pledged to devote more than half their wealth to charitable activities, without government force. What this petition actually asks is that government tax other people, who don’t share the values of the petitioners.

It’s their money to allocate as they want. If they want to allocate it to others, that’s their choice, although as I document in my book Writing Off Ideas: Taxation, Foundations, and Philanthropy in America, sometimes the results are not as desirable as the intentions.

In my book, I note that Henry Ford was notoriously uncharitable during his lifetime, saying that the best thing he could do with his money was to reinvest it in the Ford Motor Company to give people good jobs and affordable automobiles. Was he wrong? Regardless, it was his money and his choice to make.

There are two other troubling aspects to this petition. One is the presumption that the best way to fight the virus pandemic is to give the government more money. On the contrary, governments may not be the best organizations to fight diseases. Moreover, COVID-19, while raging right now, is a temporary problem and there are already aggressive initiatives underway to quickly develop a vaccine. It is unlikely at this point that sending more money to government will hasten the end to the pandemic.

A second issue—the most disingenuous part—is that the petition calls for a permanent increase in taxes to address a temporary problem. The petitioners are using the current pandemic as a cover to further their pro-government agenda.

Their real motive has nothing to do with addressing the pandemic, and everything to do with raising taxes to make government a bigger part of your life. If they succeed, the costs will fall not only on rich taxpayers but on everyone, because our liberty will be a bit more compromised.

Randall G. Holcombe is a Research Fellow at the Independent Institute, and the DeVoe Moore Professor of Economics at Florida State University. 

The above originally appeared at the Independent Institute.

Further comment from RW:

What Holcombe says above is correct but there are two more issues that must be kept in mind.

1. That the virus is not so out of the ordinary that extraordinary measures must be taken.

2. It is not clear that more money needs to be thrown at COVID-19. The pharmaceutical companies are throwing billions at attempting to find therapies and vaccines to fight the virus. Basic medical insurance can handle the few who fall seriously ill because of the virus. And private charity could take care of the rest.

In other words, Holcombe’s warning is spot on that this a call by the rich to expand the state—a state that is controlled by the very rich.

It also should be noted that Millionaires For Humanity is a project of a bunch of big government lefty “social change” groups:  Bridging Ventures, Club of Rome, Human Act, Oxfam International, Patriotic Millionaires, and Tax Justice UK.

 

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Central Bankers Have Declared War on Your Savings | Mises Wire

Posted by M. C. on December 2, 2019

Recently, European Central Bank (ECB) President Christine Lagarde bemoaned their surpluses, complaining that they would be better off spending the money on infrastructure and education. Desperate for a modicum of growth, Lagarde is of the philosophy that the only way to grow an economy is through government intervention.

https://mises.org/wire/central-bankers-have-declared-war-your-savings?utm_source=Mises+Institute+Subscriptions&utm_campaign=adfd4f6c6d-EMAIL_CAMPAIGN_9_21_2018_9_59_COPY_01&utm_medium=email&utm_term=0_8b52b2e1c0-adfd4f6c6d-228343965

…Lagarde is a proponent of the NIRPs , championing the unconventional mechanism to achieve growth. Since the eurozone has barely cracked 2% GDP, many are anticipating that Lagarde will deepen negative rates during her term as president. Anytime she has mused on the subject, Lagarde has usually dismissed concerns about the saver, noting that they are also consumers, borrowers, and workers.

Unfortunately, this contempt for savers is commonplace because it is antithetical to the Keynesian approach of spending. Disciples of John Maynard Keynes will contend that consumption over saving should only happen during the bust phase of the business cycle, but if you peruse any opinion pieces by individuals subscribing to this ideology, you will only come across spending prescriptions for every type of economy – boom or bust. They dismiss the fact that capital accumulation, not consumption, creates wealth.

This myth originates from Keynes’ The General Theory and Treatise on Money, in which he posits that a saver is reducing the income of another person because he or she is not consuming the goods or services extended by somebody else. Put simply, he considered saving a self-defeating act.

“Saving is the act of the individual consumer and consists in the negative act of refraining from spending the whole of his current income on consumption,” he wrote.

The crusade against savers has been prevalent in the Democratic primary. The likes of Sen. Elizabeth Warren (D-MA) and Sen. Bernie Sanders (I-VT) have grieved about hoarders , particularly those who are the top 0.1% (no longer just the 1% anymore; likely because these two people are the 1%, too). The presidential candidates are perturbed that the supposed capital hoarders are not putting their fortunes into the economy. This is nonsense talk to justify their wealth confiscation policies, since the affluent are saving and investing, not just stuffing their money under mattresses.

Negative rates, higher taxes, and inflation – the statists are employing every measure to gain access to the fruits of your labor…

If you don’t like it, then you are out of luck. You have nowhere to go. The globalists have declared war on mom and pop savers, pillaging bank accounts and conquering our lives. Is there a chance for victory? As long as the omnipotent and iniquitous institutions remain in charge, optimism over sound economics can only fade to black.

Originally published by Liberty Nation.

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