Are Republicans trying to cut entitlement programs or are they pushing possibly the biggest tax increase in history in order to destroy capitalism?
Q: What function does government serve?
A: One of the primary functions of government is to collect taxes, pool resources, and use those pooled resources in order to carry out important functions for society.
Q: How does government increase taxes?
A: Either by actually increasing the fees collected in the form of taxes or by maintaining the current level of taxation while reducing services.
Q: Are republicans raising taxes?
A: Republicans are absolutely raising taxes. Social Security and Medicare are services provided by the government, which are paid for with collected taxes. If the benefits, which have been paid for through taxation are cut this is an increase in taxation.
Not only are Republicans pushing for one of the biggest tax increases in the history of the United States, but they are doing it retroactively in a stealth manner by calling it a cut to entitlements.
These programs are called entitlements because people are entitled to them as they have paid for them via taxation for decades.
If the Republicans are successful in cutting these programs, they have effectively gone back in time, to the time the oldest person effected by these cuts was first employed and increased their taxes.
Republicans are raising taxes as many as thirty or even forty years ago retroactively by taking away programs, which people have paid into for decades.
The previous forty years of taxation will rise for millions of Americans if the Republicans succeed. Money that people set aside for their retirement and possible illness will be taken away in order to maintain rates of taxation for the wealthy that are below the rates of taxation for middle class Americans.
An addiction to money and to getting more money however possible is not unlike gambling or alcoholism. It is an addiction. Some people in society have this addiction and also have a keen ability to create business models and other schemes to make money. This group of people benefit society by increasing the circulation of money. They are an invaluable resource to society.
A problem occurs however when this group acquires too much power over regulation and taxation policy. You see, their aim is to make money the easiest possible way. If they control the tax and regulatory structure, as they do now, all they need to do is have government do their bidding in order to get more money.
They don't need to go through all the work of creating companies and jobs to get money. They simply pay their agents in government to manipulate the tax code.
As long as the rich can continue to push down their effective tax rate, they need do nothing else in order to acquire more wealth. In fact, doing anything else, such as starting companies and hiring people, allocates resources to far less productive enterprises than simply pushing the government to lower their tax rate.
Rich people create jobs for one primary reason and this is to increase their wealth. It is a cumbersome and laborious process and is much less desirable than simply buying increased wealth in the form of lower taxes.
What people tend to forget is that capitalism is a game. Here's how it works. People are trying to take money from other people. That's it. The people who are best at this game get the most money.
The job of government is to maintain a level playing field for this game to be played. Much like a football field, rules and referees are required to play a football game. In order for the game to be competitive the same rules must apply to everyone. Obviously we would not give special breaks to the best team in the league. Otherwise they would never loose and the game of football would devolve into a waste of everyone's time. This is precisely where we are at now in America.
The game of capitalism has devolved into a waste of everyone's time. The best team in the league, the rich and powerful, have special breaks and loopholes that give them an insurmountable advantage. The game is no longer a game. There is no longer a true competition taking place.
If the store of wealth, collected over forty years in the form of taxes designated as payment for Social Security and Medicare are stripped away from those who set them aside and given to the rich and powerful, than the rich and powerful win the game of capitalism without creating a single job.
The game of capitalism only works if the middle class has a store of wealth that the rich and the powerful have to create businesses and services in order to try and take that wealth from them. If the tax code is manipulated in such a way that the rich and powerful receive the store of wealth of the middle class than will someone please explain to me why they need to raise a finger? Why would the rich and powerful create a single job to take one dollar from anyone? If the tax code does it for them then all they need do is sit back and watch the transfer of wealth take place as if by some sort of alchemy.
If Republicans are successful at instituting the biggest tax increase in the history of the United States by cutting services that people have paid for, then they have given the rich and powerful what they would normally have to work for. There will be no jobs created. Why would they go through all the work of creating jobs? What they desire is more money and it is far more effective to simply pay your agents in the government to implement the largest transfer of wealth in history without so much as raising a finger.
The biggest tax increase in the history of the United States is being pushed by Republicans in order to render completely null and void the game of capitalism. They are attempting to strip away all of the rules, which are essential for the game to be played. If this is allowed to happen, the game of capitalism is over.