Reducing taxes may seem super obvious, but it does not make it any less true. One of the single best things that can be done to immediately put more money into everyone’s hands to either spend or invest is to lower taxes. What many do not realize is that there are a lot of forms of taxation. Reducing any form of taxation can boost things quickly, no matter how arbitrary, but these specific tax reductions or abolishments would result in a fast growing and powerful economy!
Inflation is the single most expensive thing that the government thrusts upon its people and in a very real sense is a stiff tax as the state gets all the benefit and passes the costs onto the people. The rate of wage increases, especially in a Keynesian economy as we have had since at a minimum 2008, is much slower than the rate in which the money supply becomes devalued. This means that in year one, a person making $8 an hour could buy 10 Snickers bars with that one hours labor but in year two, because of inflation, that same person got a $2 an hour raise but can only buy 7 snickers bars with that hour’s worth of wages. When the value of money is lessened at a greater rate than wages are increased, then the cost of living directly goes up with those increases. The true key on the States side is to create that inflation without anyone knowing it is inflation. This can happen by renaming it something totally different like quantitative easing, whatever the heck that means, or just secret printing and vast counterfeiting.
Direct taxation is anti-American and is also an extreme weight on the economy. Direct taxes require a private citizen to report private information against their will and without due process of law. This then also subjects them to a guilty until proven innocent style process that is not only taxing on the budget but the psyche as well. If everyone kept 100% of what they earned, the whole country in very real terms would skyrocket in value overnight. Direct taxation includes income taxes, payroll taxes, and now Obamacare. A direct tax is a direct disincentive for working harder which is a direct link to a stalling economy.
Property taxes are the single most and blatantly criminal tax there is. By virtue of its definition, property taxes are an extension of the owner and therefore taxing the property is often a tax on living. It is a descent below direct taxation because no matter how much earnings you make, if you own the property, or rather, lease the property from the state, then this adds to the disenfranchisement. When discussion turn to abolishing these forms of taxation, most argue that they are required to pay for the local infrastructure and education system. Then the answer would be to have local commerce pay for the infrastructure and to abolish public education!
Estate and Wealth Taxes
“Upward mobility is a generational pursuit” – The Backyard Economist. Those who claim that the American dream is a get rich quick scheme are those who are ready and willing to steal, cheat, commit fraud, and many other forms of short cuts contrary to the true principles of capitalism. In reality, the American Dream is a generation pursuit, it is a pursuit to build an estate, to keep that estate in the family over many generations that one’s children’s children will never starve and that the family tree may only grow stronger over time. By taxing an estate at the passing of a equities owner, one of the primary builders of wealth in this world, that of generational building is robbed and sold into the black hole of government dead weight. The single most powerful incentive for wealth building is gone for the brightest and most capable of Americans. Remove the estate tax, and suddenly, that drive is back and wealth once again will be created.
Otherwise known as capital gain taxation, taxing peoples investments is one of the most powerful ways to stop economic growth. More important than how much people spend is how much people invest. If an individual takes on the risk of investing, should they really have the returns on that investment taxed? Often after the company or person they invest in is already being taxed? No, absolutely not, capital gains taxes should be abolished and almost overnight there would be a huge boost in the economy!