The Price Of Democracy

There is a price we pay for our freedom and living in a democracy. The price is that free will allows us to make choices others may not agree with. The individual and thus a corporation (a legal entity in its own right) in our country, has its rights  defined in our Declaration Of Independence, where these rights were granted by a “creator” and not by any government. There is a reason why Obama, on several recent occasions,  had recently deleted these words, “…endowed by their Creator with certain unalienable Rights…” from his speeches. The reason for this is that he does not believe in this part of The Declaration, and does believe that our rights are derived from government and not a Creator. Unless you are prepared to agree with Mr. Obama, which I for one, along with most constitutional scholars, do not,  in a democracy the individual or corporation may act under free will, minus any statutes or laws that protect us from harm or evil doings. We are empowered by our right to make choices in a way that benefits the individual or corporation and its stockholders. This is the free and democratic way.

It seems to me, that until and unless Mr. Obama is able legally, or otherwise,  to reverse 234 years of American history along with the will of the founders of our country and its constitution, the free will by our citizens, individual or corporate will continue to be the rule. We will be able to make the choices that best benefit ourselves or our shareholders by the decisions we make and not the government. With this in mind, it would seem that rather than government trying to continually create artificial restrictions on us in order to either “fix the environment” or increase their coffers with bad tax law in order to increase spending and government entitlements, they should stop and think of the “unintended consequences” of their taxes and laws.

If you raise taxes on someone with a modicum of “so called” wealth and that means anyone from the middle class up who can afford decent legal and accountancy representation, they inevitably find another loophole or tax advantage to benefit from. In the case of corporations, who do business outside of the United States and do not want to be taxed at the highest rate in the world, they can choose to leave their earnings off shore, paying much smaller local taxes, with no benefit to our country. I would suggest that we should encourage these corporations to bring the trillions of dollars that currently lay offshore back home by encouraging a reasonable tax rate. This would not only allow corporations to bring their earnings back into the U.S., but allow them to be more competitive in foreign trade as well. This would be a win-win-win situation, as cash comes home and into the economy, the income gets taxed and more foreign sales are made by the corporations which also bring in more tax revenue. The same goes for the dividend tax, estate tax and income tax. It is much healthier for the economy to put the money to work within it than to give it to the government to spend on ever increasing entitlements and bureaucratic waste.

History has proven over and over again, that a low tax policy benefits both the economy and the amount of revenues the government collects for taxes. The Great Depression was not the worst depression and only called great, due to FDR, elongating it with bad policy and high tax rates. The 1920 depression was bigger, but we were out of it in a year and a half due to lowering of taxes and similar fiscal responsibility by the Harding and then Coolidge governments who bailed out the country from Woodrow Wilson’s high taxes and bad policy. *

The price of freedom and democracy is the free choice rather than heavy government restrictions. So long as this is a free country and a democracy we have the right to chose what benefits us or our shareholders. Thus it should behoove government to create policy that does not cause people to circumvent it to the detriment of all. The government, in a free society should create policy that encourages people and corporations to do things, that that while positively impacting that individual or corporation, also offers additional benefits to our country, its economy with more revenue and its people.

Until such time that the government severely limits or takes away our freedom,  the best government policy is to encourage us towards a desired outcome, rather than try to regulate or tax one with laws that have unintended and negative consequences. This is not yet Venezuela.

* http://www.cato.org/pub_display.php?pub_id=9880

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About ira1942

An American concerned for our country and it's current direction.
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