Posted on August 6, 2015 by Martin Armstrong
Yahoo reported that economists deny Trump’s ability to bring jobs back to America from China and other countries. Well, the economists are wrong. All it would take is a repeal of the income tax. Nearly half of the cost of labor is taxation. If you want to create jobs, cut the income taxes. That does not mean merely corporate, as that would not reverse the trend alone. You need to eliminate payroll taxes and personal income taxes.
The repeal of the income tax should also apply to states, and all taxation should be restricted to what the Founding Fathers concluded — indirect taxation only. That means consumption taxes EXCLUSIVELY. Then it also does not matter who is here, as illegal aliens would pay the same as citizens. Income taxes only apply to citizens or those with green cards.
This is Elfreth’s Alley in Philadelphia, established in 1702 this is the oldest continuously inhabited residential street in America. Notice there are two aspects driven by property taxes. First, row homes developed because there was a tax on windows. Secondly, the phrase “taking a step up in life” refers to the number of steps you had to enter your home, as homeowners were taxed per step.
We do not own our homes; you cannot retire, even after paying off your mortgage, since you still have to pay property taxes. If you do not pay your property taxes, they take your house and throw you out on the street. Property taxes are the most UNDEMOCRATIC tax we have and are a remnant of a totalitarian state. Today, government workers demand funding for their pensions through exploitation of the people.
Government should privatize to eliminate pensions. We have to face the fact: politicians will never efficiently manage anything; they are hopeless. Government departments should privatize simply for real management, and then we would not have this crisis of unfunded pensions that are bankrupting the states. No state is capable of simple fiscal management because they are not competitive. Instead, they abuse their power of taxation to fill in gaps of mismanagement. Taxes clearly alter our lives and it is never for the better at the end of the day.
This entry was posted in 2016 U.S. Presidential Election, America's Current Economy, America's Economic History, Taxes and tagged Elfreth's Alley, Income Tax, Pension Crisis, Privatize Government, Totalitarian State, Trump by Martin Armstrong. Bookmark the permalink.http://www.armstrongeconomics.com/archives/35741