Friday, March 13, 2026

A Primer On Taxation And Productivity

 

“The wealthy are getting bigger tax breaks,” Democrats incessantly howl. Or, “The wealthy are poised to receive larger tax refunds than the less fortunate.” The proper response to these inane assertions would be, “Yes, and do you know why that is? It's because they pay more in taxes. In fact, by some measures, the top 1% of income earners pay nearly 40% of the federal income taxes.” The bottom half of income earners, or non-income earners, pay virtually no federal taxes at all.

This is as if progressives would be pissed off if somebody who spent $1000 at Menards got more money back via the company’s 11% rebate then somebody who spent $10 at Menards. That would be insane. Should we go to a progressive rebate structure, too, based on one’s income level? Those on the left would probably say yes. But, again, most wealthy people already pay far more in taxes via our “progressive” tax rate than do those less well-heeled. And that discrepancy doesn't even take into account the myriad other income transfer programs and schemes for which someone other than the recipients must pay. Nor does it consider or reflect the inconceivably vast levels of Democrat corruption and fraud-- or the related billions of dollars in freebies for illegal aliens that must either explode the debt or be paid for by higher income earners. To wit, Elon Musk recently claimed that he has paid over $10 billion in cumulative taxes as the most soaked individual taxpayer in history.

As California, among other states, is poised to find out, if you punish the talented, productive and job-producing, you will be left with the incompetent, shiftless, and welfare-addicted. And you sentence your state—and its residents-- to a dismal and dystopian future.

In a related story, new New York Mayor Zohran Mamdani promised his constituents “free” buses. And the city’s first “Free” Grocery Store just opened. Fox News reported that “hundreds of New Yorkers queued up outside a pop-up shop offering free groceries.”

But how can anything be truly free? Will farmers donate their produce? Will shipping and packaging be done for free? Are store employees willing to work for nothing? (Hell, they’re barely willing to work for good wages.) So, in the end, guess who pays? Guess who always pays?

Looks like we’ve got some ‘splainin’ to do. Okay, Democrats, for there to be a product or service that some people “are not paying for,” others would have to not be paid for their labor. Of course, this cannot be the case, at least at scale. So, what people mean when they say something is free, is that others must be made to pay for it. And when some people are made to pay more and more for things that are provided to other people for free, they will naturally do the logical thing and flee that state or municipality, taking their productivity-- and money-- with them. This is doubly bad for the state from which they fled. But, a large, and apparently growing, percentage of the populace either doesn't understand the connection, or doesn't care as long as they can get free stuff, provided by others. These are not the “moral” people that John Adams and the other founders were Speaking of, as regards the Constitution.

When government demonizes the most productive segment of the population and confiscates ever more of its money, those in that population tend to try to protect themselves and their families’ financial future. Surprise! Who woulda thunk?

But so-called progressives live in an alternate “reality,” albeit one that can never become real. At some point, Atlas Shrugs.

And with him go the rest of us.

 

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