WOW! $2000 a month from Uncle Sugar sounds great! Free medical care sounds fabulous! Free college and canceled student loans sounds fantastic! Free food & housing? Who wouldn't want that?!!! Oops!
Here's why it can't happen for long: Who pays? AHA!!!!!! Of course!!!! Tax the rich!!!! Oops! Problem: The rich, who already pay the lion's share of taxes, MOVE! They've left California and New York for Florida and Texas (no state income tax). So? Up their federal tax!!! Problem: They'll move offshore. Years ago Congress placed luxury taxes on yachts. Problem: Workers who worked building yachts in the U.S. lost their jobs because the rich bought yachts in other countries.
The Laffer Curve (Google it) shows that with both a zero and 100% tax rate, NO tax revenue results. Find the sweet spot in between?
UPSHOT: The rich move overseas to avoid sky-high taxes. No one left who can afford to pay for utopia. U.S. Treasury prints unlimited money. Interest on U.S. debt skyrockets. U.S. dollar collapses. China declares U.S. dollar is no longer recognized in the world economy and declares the Chinese yuan as the world's standard currency. Utopia crashes and burns and Venezuela adopts us as one of their colonies. NOTE: Venezuelans are now eating their pets for food. Take action now to buy a St. Bernard!
Here's why it can't happen for long: Who pays? AHA!!!!!! Of course!!!! Tax the rich!!!! Oops! Problem: The rich, who already pay the lion's share of taxes, MOVE! They've left California and New York for Florida and Texas (no state income tax). So? Up their federal tax!!! Problem: They'll move offshore. Years ago Congress placed luxury taxes on yachts. Problem: Workers who worked building yachts in the U.S. lost their jobs because the rich bought yachts in other countries.
The Laffer Curve (Google it) shows that with both a zero and 100% tax rate, NO tax revenue results. Find the sweet spot in between?
UPSHOT: The rich move overseas to avoid sky-high taxes. No one left who can afford to pay for utopia. U.S. Treasury prints unlimited money. Interest on U.S. debt skyrockets. U.S. dollar collapses. China declares U.S. dollar is no longer recognized in the world economy and declares the Chinese yuan as the world's standard currency. Utopia crashes and burns and Venezuela adopts us as one of their colonies. NOTE: Venezuelans are now eating their pets for food. Take action now to buy a St. Bernard!
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