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Supply-Side Economics? Bad for those who want to control you through government!

Government controls two-thirds of the US economy. One-third is private enterprise which creates wealth, pays wages and keeps the government alive. Lowering taxes increases investment, productivity and work. People work more and invest more when taxes aren't punishing.

I'm continually astonished when people support politicians who are dedicated to raising taxes on income. Why punish labor and investment? Why indirectly teach people that their efforts are effectively undermined by politicians? Remember that investment and overall wealth has grown exponentially since Reagan reduced the top marginal income tax rate from 70% to 28.8%. Democrats want to go backward and return to the bad old days of high taxes and business-strangling regulation.

To have a strong and expanding economy, it is necessary to have the greatest number of workers producing and creating wealth - instead of drawing benefits or living on welfare or social security payments. The parts of the US economy that are suffering the most are those areas where folks live on government jobs or government handouts. Many people in New England work for government or live on transfer payments. These economies aren't doing well. States such as Maine, Vermont and Massachusetts are always facing budget shortfalls and continually raising taxes on their populations. Their tax policies punish productivity and investment.

For many years, supply-side economics was seen as voodoo-economics; a brutally dishonest characterization. When you lower marginal tax rates, people tend to see more value in working and investing and thus you get more of both. When you raise taxes, it doesn't necessarily mean you are going to collect more revenues. Higher taxes do impact behavior. People won't work as much if too much of their take will be confiscated through taxes. More jobs will go underground and "voluntary compliance" with the IRS will go down.

There is no argument to be made against supply-side economics. It is the only realistic approach to take.

Learn more about this author, Daniel Walch.
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