Political Concepts Of Wealth And Taxation

Political Concepts Of Wealth And Taxation

· The Republican concept of taxation and wealth building is based on the supposition that an educated few well capitalized people and corporations know best how to run a nation and conduct business. It is based on taxing the vast middle class to pay for the needs of the lower class population. If the monetary needs of the government cannot be met by middle class taxation, then vast borrowing is in order. This process provides a two-way benefit to the wealthiest of citizens. First their taxes are lessened giving them more funds "to invest." Then they invest in such things as 30-year Treasury Bills that accrue interest to the investor and must be paid with funds raised from taxes on the middle class. The only people and businesses that can invest in a 30 year instrument is someone who has ample funds for all their immediate needs and will be investing only to benefit its second and third generation descendants.

· The Democrat concept of taxation and wealth building is based on the supposition that many people will benefit from having a personal stake in the future by having the ability to build wealth while taking care of the less fortunate population who needs financial supports. Taxation should be based on the ability to pay and the concept that individuals who concentrate vast wealth do it on the labors of the middle and lower classes that struggle to make a living wage. Further beliefs are that the wealthy will not put their funds where the masses need it but rather where it will concentrate the most additional wealth for themselves.

· The Royal concept of taxation and wealth building is based on the supposition that taxpayers are superfluous in an economy that is awash in wealth that can be pumped out of the ground and sold for whatever minimum price the ruling family members choose among themselves. The price can go up from that base depending upon the market forces, i.e. how badly the users want it and how much they are willing to pay all the intermediaries along the way. Wealth accrues to the ruling family and the people merely get in the way. Oil production is a form of mining that indeed builds wealth.