by Respectfully - Supposn

Created on: February 12, 2009

The concept of "Trickle-down" tax policy might better be described as "Urinate down upon me and I'll appreciate your blessing waters".

We all should, (and many do) assess the extents of probable success and expected rewards balanced against the extents of risks and penalties, resources and efforts to be spent before committing to tasks or enterprises. Our "1040 Individual Income Tax" form acknowledges and provides for work and business expenses.

What we should not do is to practice tax inequity. granting any income sources more favorable tax consideration than that of wage incomes is uneconomical and immoral. Only clear and sufficient national benefits may possibly justify such tax inequities.

All tax inequities shift a greater proportion of burden upon less favored tax payers. Any causes of net revenue decreases must be reconciled with net increase of taxes and/or borrowing and/or spending reductions. Tax inequities do not themselves induce spending reductions.

The stated purpose of many existing and proposed tax inequities are to encourage investment. Generally they indirectly attempt to favor investing by granting favorable tax treatment for investment incomes and/or profits.

In cases where a tax inequity is not the determining factor for acceptance of investment risks, it can be advantageous to investors but is of no benefit to the nation. Investor's behavior is not modified but we suffer a tax inequity.

In cases where favorable tax treatment is critical to acceptance of investment risks, it can be advantageous to some, but not all investors. Favorable tax treatment can entice some to choose what otherwise may be unjustifiable investments. When factoring in the detrimental effects due to inequity itself, the nation's net benefit in such cases are questionable.

In addition to tax inequities economic harm, is the propagating of a perception that our government practices "special strokes for special folks" that's contrary to the philosophy of a democratic nation. We should cherish our reputation within and beyond our borders as a democratic nation that strives to be "even handed". A good reputation has value. It may accomplish what force of arms alone can not achieve.

Trickle-down proponents ignore history. USA investors have too often thrived with no similar increase of the median wage. Those episodes of plenty only for the wealthier were not long sustaining and our economy afterward suffered.

I have more confidence in USA's competitive free market and self determination rather than government's intervention. I trust populism rather than a divine right of wealth. When median wages increased, most other segments of our population similarly benefited. (All the boats were lifted by the same rising tide). Those episodes were longer and their gains were sustained.

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