By: Guest Authors
By: Alan Levesque
Recently our soon to be former Speaker of the House made the following statement:
â€œGiving $700 billion to the wealthiest people in America does add $700 billion dollars to the deficit. And the record and history shows and does not create jobs.â€ Putting aside for the moment that most third graders have better English skills, letâ€™s examine this absolutely ridiculous statement. Mrs. Pelosi wants us to believe that extending the current tax rates for all Americans is *GIVING* them money. Since you canâ€™t give something that isnâ€™t yours, she is in effect making the case that the money belongs to the government in the first place.
I would like to take this opportunity to enlighten and educate Nancy Pelosi on this matter. I will use short words and easy analogies in the hope that she can grasp the concepts presented. The first thing that needs to be understood is that if I earn $100.00 it is MY $100.00, not yours Nancy. You didnâ€™t drag yourself out of bed at 4:00 A.M. and earn it. I did. It is mine not yours. If my tax rates go down, you are not giving me anything, you are simply taking less of my hard earned money.
Now, letâ€™s go on to our next lesson. The deficit. A deficit is the difference between what you take in and what you spend. Deficits are caused by *OVER-SPENDING* not under-taxing. To illustrate, let us assume that you owe $10,000 on your mortgage, $5,000 on your car and $1,000 on your credit card. Remember we are using small round numbers to keep this simple. Itâ€™s hard to think in trillions! These numbers add up to a total of $16,000. We will call this $16,000 your deficit. It is money that you owe. Now letâ€™s assume that your salary is tax money being taken in. This should be simple for you to understand since your salary *IS* tax money being taken in. Now letâ€™s further assume that your constituents suddenly buy a clue and vote you out of office at which point your salary stops and you are no longer taking in â€œtax money.â€ Does your deficit get larger? No, it does not. You still owe the same amounts on your house, car and credit card. Now letâ€™s assume you use your credit card to buy Botox and you spend $1,000. You will now owe $10,000 on your mortgage, $5,000 on your car and $2,000 on your credit card for a total of $17,000. Did this additional spending make your deficit get larger? Yes, it did. Your $16,000 deficit is now $17,000. See how that worked? It looks like spending causes deficits. Unless you add to them by spending, they stay the same. Simply amazing.
Now, letâ€™s move on to the subject of class warfare. This might have worked in 1917 Russia but it doesnâ€™t fly here in America. Most of us do not begrudge the â€œrichâ€ what they have. We assume that in most cases they earned what they have and have a right to it. These high achievers add value to our society and economy. Most Americans in lesser circumstances consider themselves to be â€œpre-rich.â€ That is to say that they fully expect to be well off someday themselves. Thatâ€™s the beauty of America. We were raised with the notion that we can have anything we want if we work hard and persevere. Class warfare coming from a multi-millionaire who owns a vineyard is just a bit unseemly. Weâ€™re not buying it as to do so would create an IQ deficit.
*About The Author*
Alan Levesque is the owner/editor of “The Daily Pamphlet”