Socialist never account for human action.

BIDEN'S PLAN WOULD DEVASTATE AMERICAN ECONOMY

INCENTIVES AND DISINCENTIVES WOULD LEAD TO DISASTER

Joe Biden has revealed his economic plans for America. It all sounds wonderful as long as you ignore human nature and what incentive's encourages people to work and plan for their and their families future.

Under Biden and most other Democratic plans, they want to raise taxes to as high as 52 %, this is on income of over 10 million. taxes are also raised on incomes over 200K. He also wants to eliminate the cap on social security taxes which is now at 200K. So a self employed person who has a small business would be paying 52% income, 15% social security, 5% local and state, and in some states much more, not to mention real estate, sales and other taxes. This would add up to 72% just on income. 

We also hear of annual wealth taxes, which would tax your assets at about 2% per year to start. In effect confiscation of your assets a little bit every year. 

All this would supposedly add Trillions to the government coffers and increase the federal government control into every aspect of life.

But any sane person could see that this disincentive would cause people to possibly forgo expanding and growing their business, and to shift assets to material rather than paper assets. This alone would cause a slowing of the economy and encourage people to make less money.

On the other end of the economy, if we guarantee health care, food, housing and education we have now discouraged any work at all. Why would anyone work harder so that a larger and larger share of their income would be taken in taxes. This again would cause a slow down in economic activity and begin a vicious cycle of more taxes, less incentive and more taxes, much as the economic plans in our major cities. 

As far as health care, many assume that replacing insurance companies, who now administer the financing of healthcare, with government bureaucrats would be more efficient. This is most likely just the opposite. We would see large pensions, and weak incentives to be productive, just as in all government controlled endeavors.

Necessity is indeed the mother of invention, without incentives to work, to survive and prosper we would in a short time be on the road to a Venezuela type outcome.

Also, when people resist, by hiding assets, working by barter and other ways of bypassing taxes, it will require an increasing authoritarian and intrusive government to insure compliance.

By appealing to peoples envy of those who enjoy their work and often work many hours to have large incomes and also appealing to those, who if they had their choice would do no work at all, we would be encouraging the wrong incentives for both groups. Does anyone doubt that such a system would produce more dependents and less actual hard working folk.


Originally published 4/16/2019

The embracing of these incentives is not a mistake, a miscalculation or ignorance, it is just another step to lower the wealth of the American people and the country. If one believes we need to move to a global government, we need to equalize the living standards around the world. It is not only a plan of redistribution at home, but also a plan of global redistribution. We can expect a rush to recapture the setbacks the globalists have endured for the last 4 years.