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Citizens pay taxes, government spends taxes
Editor,
A news anchor on one of our national TV networks asked the question on Friday evening’s news, “When will the nation’s unemployment rate quit rising and turn in the other direction?”
The answer is simple and known to us all.
Our economy and employment will turn upward soon after our president and Congress demonstrate an understanding that businesses, small and large, produce goods and jobs; government consumes rather than produces. Employees and other consumers pay the taxes. Government spends taxes; it does not pay taxes.
Even businesses, when they are allowed to make a profit (ooh, there’s that ugly word), can pay taxes on that profit only by charging enough for their products to pay such taxes. They have no money for paying taxes unless they first take it from their customers (consumers/taxpayers).
Similarly, our government has no funds to give away, rescue bankrupt businesses or provide universal socialized health programs (or anything else) unless they first take it from its citizens. When the citizens no longer have funds for tax increases, government borrows from other governments, thereby obligating its future taxpayers to other countries for both principal and interest.
So, when will our economy turn upward? When we elect leaders who apply these fundamental economic principals of a free society and release the entrepreneurial spirit and creative abilities of our country’s people.
The last time our unemployment rate was this high was in 1983, the first term of Under President Reagan, Congress was finally convinced to dramatically cut the confiscatory tax rates that existed under the previous president and Congress. The recovery began soon after and lasted long. Perhaps we should remember our own history and what works, then consider emulating success.
Keith A. Brown
Perry Township
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