“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.” Alex De Tocqueville
A March 27th Op-ed in the San Antonio Express News by Nicholas Kristof calls us a “Nation of Takers,” claiming that the US government gives welfare to the wealthy with mortgage tax “subsidies” for the wealthy and lower capital gains taxes as opposed to earned income taxes.
Forget that Kristof doesn’t understand the difference between taxes – where the government takes from some – and subsidies – where the government gives tax money to the benefactors the government selects. Taxes take, subsidies and benefits give.
Kristof assumes that all money is the government’s to tax, rather than the property of individuals who have the unalienable right to earn and accumulate what they earn to provide for themselves, their dependents, and for the future when they are unable to earn. The money doesn’t belong to even the most utilitarian – or Utilitarian* – government plan for its use.
Those capital gains taxes are on money already taxed and invested for a certain period of time. If you want to encourage investment, don’t tax it. If you want to encourage hoarding on the other hand . . .
As to those yachts and beach homes – people who don’t use these dwellings as their actual homes can’t claim the mortgage deduction. In any case, thanks to the effects of the alternate minimum tax, the wealthy don’t receive any mortgage tax deduction.
*Utilitarian good is the idea that government should rule “for the greatest good.” We end up with the biggest gun, the most charismatic leader or the majority voting — and eventually, “might makes right.”
“I have never understood why it is ‘greed’ to want to keep the money you’ve earned, but not greed to want to take somebody else’s money.” – Thomas Sowell