Dakota Beacon

Campaign season is upon us and candidates ply us with their plans for the economy. Liberal candidates use the same old worn out slogans which translate to “tax the rich.” These are the same candidates who explicitly want people with money to come clean and “pay their fair share.” It is the same tired class warfare argument.

            What does the IRS data confirm?

            The top 1% of all income tax payers pay about 35% of all federal income taxes.

            The top 5% of all income tax payers pay about 55% of all federal income taxes.

            The top 10% of all income tax payers pay about 65% of all federal income taxes.

            The top 50% of all income tax payers pay about 95% of all federal income taxes.

Meanwhile, the national debt has topped $20 trillion. That is 539% of the annual federal revenue. This year’s budget deficit is $1 trillion. Add to the debt and deficit other liabilities and unfunded obligations and the dollar value rises to $74 trillion. Words; just words with numbers beyond comprehension.

The president initiates the budget process. He then submits his budget request to congress. Congress does with it as they please. In short, the president proposes; the congress disposes.

Most of the dollars budgeted by Congress, about 70%, must fund mandated entitlement programs. Only about 30% is left for Congress to “play” with. For the most part, any tax cuts must be borne by programs funding that 30%.

What if the president asks for more money to fund his budget than is available? What if the president continues to grow the federal government unabated? The answer is simple but the consequence is onerous. Congress raises the debt ceiling once again allowing the president to continue borrowing and spending money. North Dakota Senators John Hoeven and Heidi Heitkamp and Congressman Kevin Cramer don’t care. They go with the flow and vote to raise the debt ceiling whenever it is proposed.

 Who are the rich and how much more should the government take from them? How much more should productive people and their capital pay to support half of the population? Specifically, how should wealth be redistributed to make our society “fair?”

 These idle questions become irrelevant in the absence of responsible political leaders. The debt is so large currently that if the entire wealth of the upper 50% of income earners were confiscated and applied to the national debt the debt still could not be paid. The 20th century is littered with the carcasses of nations who tried this approach and failed. It is a shame we don’t have the old Soviet Union around to hold up to millenials as an example of failure. Must the United States become the next botched experiment?

 Soaking the rich in a liberal socialist way is certainly not the solution and it does have unintended consequences.

 The rich are not getting richer at the expense of the middle class and the poor. The Fiscal Times has disassembled this myth with data. Likewise, income inequality is not getting worse as can be seen in the most current US census data. Nor is the middle class disappearing through concentration of wealth in the hands of the super-rich.

 The surest way to successfully address the national debt is to encourage economic growth by reducing taxes, the size of government and government regulations. This would free the greatest engine of economic growth the world has ever known.

 A solution becomes less probable as fewer people carry the greater burden. First, with more people receiving federal dollars, there is slim chance anyone will voluntarily relinquish their “take.” Second, it is foolish to think Congress will voluntarily give up the most powerful tool they possess – the power to dole out money to constituents and districts thus giving them the power to influence votes.

 As fewer and fewer people carry more and more of he burden, reality will force a correction. Those few who carry the greatest burden will eventually manage to escape. The rest will have to suffer through the correction. Even now demographics argue that a reality check will come sooner than later.

 I probably won’t be around when reality sets in and for that I am grateful. The millennial generation will have to deal with it and it won’t be pretty.

Dennis M. Patrick can be contacted at P. O. Box 337, Stanley, ND 58784 or (JavaScript must be enabled to view this email address).