We Need To Have A National View Of Abundance Instead Of Scarcity – How The White House Does Not Understand The Concept Of Taxes Because They Have A Viewpoint Of Scarcity Instead Of A Viewpoint Of Abundance

HOW THE WHITE HOUSE DOES NOT UNDERSTAND THE CONCEPT OF TAXES BECAUSE THEY HAVE A VIEWPOINT OF SCARCITY INSTEAD OF A VIEWPOINT OF ABUNDANCE

Our current White House administration is incorrect and has an oversimplified view of how much tax revenue can be collected by raising the federal income tax rate.

Our current White House incorrectly thinks that the income tax rate is the only variable, and so they erroneously think that if they raise the tax rate by 5% or 10%, then they will collect an extra 5% or 10% of total tax revenue.

They misunderstand the concept of taxes because they do not realize that there are many additional variables and factors beyond the tax rate that affect the amount of taxes that will be collected.

For example, when the tax rate is increased, then our American people will choose to reduce the number of new businesses they will start, and they will choose to reduce the amount of money they invest, because the potential profit of starting new businesses and making new investments becomes less with a higher tax rate, while the risk of having a loss remains the same.

In addition, some existing businesses may make the decision to close because they will not be making as much profit as they were before, causing some business owners to think that the reduced profit is not worth the risk of loss.

Likewise, when fewer new businesses are started, and more old businesses are closed, and less investments are made, then less employees are hired, lower wages are paid to everyone, and unemployment goes up.

The knock-on financial effect to our government of having fewer people being hired and unemployment going up is that these unemployed people will not be paying any taxes, and they will also be receiving financial benefits from the government.

In the same way, lower wages means that lower-paid workers will also pay less in taxes than they would if they were receiving higher wages.

Therefore, the potential increase in the amount of taxes collected with a tax rate increase is either partially or fully offset by the decrease in taxes collected because new businesses were not started, new investments were not made, some existing businesses were closed, new employees were not hired, wages were reduced for large numbers of people, and unemployment increased that caused the government to pay more benefits to the unemployed.

The result is that the White House ends up collecting far fewer taxes than they estimated they would when they incorrectly thought that the tax rate was the only variable.

An example of this occurred in the 1960’s when the government raised all the taxes, including raising the highest tax rate to 90%. However, these exorbitant tax rates caused such a decrease in new businesses and new investment, an increase in existing businesses closing, and a decrease in

people being hired, that the government collected only about the same amount of taxes that they had been collecting before the taxes were raised.

Even worse, the economy slowed down so much and for so long that raising the taxes turned out to be a financial negative for the amount of taxes collected by the government.

These factors and variables work in the other way, also.

If a government reduces taxes and decreases business regulations, then this increases the number of new businesses started, reduces the number of existing businesses closing, increases the amount of investment being made, increases the number of new employees being hired, increases the wages being paid to workers, and decreases unemployment.

Therefore, reducing the tax rate and decreasing business regulations can often cause the government to collect more taxes than they were when tax rates were higher.

However, our current White House does not understand this concept because they only see the tax situation from the incorrect and oversimplistic view that if they raise the tax rate then they will increase the amount of taxes collected equal to the increase in the tax rate.

As a result, the current White House is falsely claiming that when a White House administration lowers taxes like the previous White House administration before them did, then this was a $2 trillion tax cut.

This is completely false.

The lowered tax rates and decreased regulations actually caused tax revenue to increase in recent years because lower tax rates and decreased business regulations combined to increase economic growth.

However, the simple-minded viewpoint of the current White House does not understand this concept, and instead they incorrectly take the increased economic growth caused by the lower taxes and reduced business regulations, and multiply this higher level of the economy by the higher tax rate that they would choose to charge.

As a result, the current White House incorrectly and falsely tries to say that the previous administration cut taxes by an amount equal to the difference between the tax rates that the two administrations would have charged.

This is false because the current White House is attempting to take the best of both variables.

They are trying to take the higher economy that was caused by the lower tax rates, and multiply this higher economy by the higher tax rates that they want to charge.

This is false mathematically because their higher tax rates would not have created or allowed the higher economy to charge the higher tax rates on.

Here is an example of this concept.

Let us say there are two people in an apple-picking competition at an apple orchard.

Let us say that the two people are given a choice of either walking around the orchard for two hours to pick the apples, or driving a golf cart around the orchard for two hours to pick the apples.

If a person chooses to walk, then they will have to give 25% of the apples they pick to the orchard owner, and if a person drives a golf cart around then they will have to give 20% of the apples they pick to the orchard owner.

In this example, the percentage of apples given by each competitor represents the tax rates payable by each of them, and the golf cart represents how much faster an economy moves when tax rates are reduced and business regulations are decreased.

Let us say that the walking competitor picks 400 apples in two hours, and so has to give the orchard owner 25% of them, which is 100 apples.

In comparison, the competitor on the golf cart can move around faster to pick 800 apples in two hours, and so has to give the orchard owner 20% of them, which is 160 apples.

Therefore, the competitor on the golf cart had to pay 60 more apples in tax revenue than the walking competitor did, even though the golf cart competitor had a lower tax rate to pay.

The reason that the golf cart competitor had to pay more apples is because the golf cart, representing the faster economy caused by the lower tax rates and the reduced business regulations, was able to generate more revenue by getting around faster to pick apples than the walking slower economy with the higher tax rate could generate.

If the current White House looked at this apple situation in the same incorrect way they are trying to look at tax revenue and raising tax rates, then they would say that the competitor with the golf cart was given tax cuts equal to 5% multiplied by the 800 apples picked, and that 40 more apples should have been paid by the golf cart competitor as “paying their fair share”.

Further, the current White House would incorrectly try to say that they will raise the tax rate next year on the golf cart competitor to 25%, which in their simple-minded thinking will bring in 200 apples of tax revenue instead of 160 apples.

However, what they keep not realizing is that this would not work because when the tax rate is raised then the economy slows down and so the competitor with the golf cart has the golf cart taken away.

As a result, the golf cart competitor goes back to walking again, goes back to collecting only 400 apples again, and goes back to only having to pay the orchard owner 100 apples instead of the 160 apples that was paid when the competitor had the golf cart of lower taxes and reduced business regulations.

Unfortunately, though, the simple-minded current White House administration has already overspent their falsely expected 200 apples in its budget for the year because of their desire to overspend, and so our budget deficit and national debt increase by 100 apples because they falsely thought they were going to collect 200 apples with a golf cart, but when they took the golf cart away then they only collected 100 apples by walking.

However, instead of our White House learning their lesson from their mistake, they are so simple-minded, unrealistic, and unable to see that their policies do not work, that they decide to double down and falsely tell everyone that they need to raise taxes again because “the wealthy people are not paying their fair share”.

As a result, when the current White House raises the taxes again, then this causes all the apple competitors to move even slower than a walk, which causes even less than 400 apples to be picked by each competitor, and causes even less than 100 apples in taxes to be given to the orchard owner by each competitor.

Therefore, the policies of the current White House administration are completely wrong economically, and result in a continual downward economic spiral for our Country.

A downward economic trajectory that if given enough time in power through elections will lead to an Economic Depression like we are currently heading toward.

The only way for America to get ourselves out of this situation is to elect better political leaders who understand that slowing our economy by raising taxes, and increasing our national debt by overspending, do not result in a successful Country.

The White House administration’s continual mistakes and refusal to learn from their mistakes reminds me of a joke that my Dad used to tell me many times for the past 40 years.

The joke is about two men selling watermelons from their watermelon truck.

The two men go to a farm where they purchase 200 watermelons at $2 each and load their truck full with these 200 watermelons.

They drive to an area beside a road and begin selling their watermelons for $1 each.

They sell all the watermelons in their truck and so they feel very good about the work they have done.

However, when they count their money, they realize that they only have half as much money as they started with.

The two men cannot figure out what has gone wrong because they have sold all their watermelons, until one of the men says, “I know what to do, we need a bigger truck.”

This is exactly what our current White House administration does. They always want to raise taxes, but when they do raise taxes then this results in a slower economy and less tax revenue coming in than before they raised the taxes.

However, just like the two men and the watermelon truck, instead of our current White House people realizing and learning from their mistakes, they instead decide that they need a bigger watermelon truck by raising taxes even more.

Therefore, our current White House administration does not learn from experience and does not learn from history.

When a group of people continue to make the same mistakes over and over again, then it makes us wonder whether they are not smart enough to see that raising taxes is a negative for our economy, or whether they realize it is a negative but they do it anyway because they have a personality where they want to control people and they want to control everything.

A personality and a philosophy where they want to try to spend as much of your tax money as they possibly can on policies that do not work. On their policies that only restrict and hold back our American people.

They do not want to trust people and give us the freedom to be able to be successful on our own.

They want to hold people back by giving us a tiny fish every day, just enough to barely survive on, so that we cannot get ahead.

They want to hold us down because they want us to think that we need to keep voting for them in the next election, so they can keep giving us a tiny fish every day.

50 years of being given a tiny fish every day is not a plan, and it definitely has not worked for anyone.

In comparison, I have a far better philosophy where we will help everyone to learn how to fish on their own so that you can catch enough fish to Live Your Life in Abundance.

We will support you when you need help, even more than the current White House does.

But while the current White House administration wants to keep you in poverty to try to force you to keep voting for them, I Love You and I want for you to be Tremendously Successful so that You and Your Family Can Live in Complete Abundance.

Therefore, while we are helping you when you need us, we will also be providing guidance and opportunities for you to be able to fish tremendously well on your own so that You Will Live Your Life Feeling Proud of Yourself and Proud of Your Accomplishments, so that You and Your Family Are Very Happy and Financially Secure, and so Your Life Has the Incredible Meaning and Purpose That You Desire.

We will work hard with You Every Day so that You Can Build A World For Your Children.

Our current White House does not understand this concept because they only see the world from the viewpoint of scarcity.

They think there is a finite and limited amount of money and resources, and that their job is to distribute out this money and resources very thinly to everyone so that no one in America has enough to be happy.

Holding us down so that we incorrectly think we need to vote for them so they can keep giving each of us just enough of a tiny fish to survive.

I do not agree with their viewpoint of scarcity. I know it is wrong.

I BELIEVE in the Viewpoint of Abundance, where A Rising Tide Raises All Ships so that every one of us Together can be Tremendously Successful.

It is my Viewpoint of Abundance that has inspired me to write the 65 Policies that I have designed and written on this website.

65 Policies that will help you when you need help, but which will work Together with You to Lift You Up into Abundance at the same time.

So that You and Your Family Will Live Your Lives in Abundance and in Financial Security.

And so that You will Achieve Your American Dream for You and for Your Family.

LET US BUILD A WORLD FOR OUR CHILDREN

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