Taxes are used to raise money from individuals and businesses by local, state, and Federal governments to pay for the goods and services provided by those governments to their constituents. Taxation can be an important economic and social policy tool.
There are a variety of different tax structures.
Progressive taxes take an increasing percentage of income as income rises.
Proportional taxes, also known as a flat tax, tax all income levels at the same rate.
Regressive taxes take a higher percentage as income is reduced.
Direct taxes are taxes paid by individuals or businesses directly to the government. Income taxes are direct taxes.
Indirect taxes are paid to the government by one entity in the supply chain, but the cost of the tax is passed on to the consumer as part of the price of goods or services. Gasoline tax is an indirect tax.
Luxury taxes are indirect taxes on goods that are considered non-essential such as expensive cars or jewelry. These taxes generally affect those with a higher income because they are more likely to purchase luxury items.
Direct taxes tend to be proportional or progressive; whereas, indirect taxes are generally regressive. The same amount of tax is paid for goods regardless of income, but the result is a higher percentage of income is paid by those with a lower income. By themselves, taxes would reduce economic activity by taking money out of circulation. The benefit of taxes depends on the use to which the taxes are put. For example; taxes used to build infrastructure and support schools create jobs. Those workers place the funds back into the economy as they pay for goods and services for themselves and their families. It is a win/win situation. Taxes used for social programs, such as providing food and shelter for the poor, are a redistribution of wealth. Money is taken from those with a higher income and given to those with little or no income. There is no benefit to those who paid the tax.
Tariffs are taxes on imports. Rather than raising money by taxing Americans, the government can raise funds by taxing foreign companies that import goods into the United States. One of the key principles that drove the Declaration of Independence was over taxation by the British. The United States originally raised money through tariffs. Tariffs also encourage people to buy American products and support American manufacturing.
The ingredients for a good economy are hire American, manufacture in America, and buy American. President Trump is a business man who understands economics. He is leveling the playing field by negotiating new trade deals with countries such as France, Canada, and Mexico. He is lowering corporate and individual taxes, which brings manufacturing and jobs back to the US. All of this puts more money into the pockets of Americans who put it back into the economy. A win/win for all Americans. It is hard to understand the opposition by liberal politicians such as Schumer, Pelosi, and Tester, to these policies. Would they rather have Americans out of work and relying on social programs as they struggle to get by? The answer is yes. More dependent Americans means more government control.
Our country was founded on Freedom from taxes and Freedom from government control.
Real Americans vote for Freedom!!!
