This is a simple concept, yet is misconstrued constantly by government.  Government passes a law that gives everyone money.  What they fail to understand is that they first must take that money from that person to give them that money.  Often the politicians try to portray that they are taking money from corporations or the rich, however that tax is always passed on to the consumer or others in a variety of ways.       
Debt held by government is claimed by some liberals to not be a big deal because 'we owe it to ourselves'.  First, it is owed to individuals, not the government.  There is a major difference.  Government must TAX everyone to give it back to us individually. 
US debt per taxpayer is $161,000 (May 2016).  This is how much government has to tax us in order to give it back to those of us holding US debt.   State and local bonds are also a heavy burden on our system.  All of this debt is not balanced with real assets, it is mostly backed with just the promise to tax citizens.
Laffer Curve: the act of taxing an economic transaction, reduces the number of economic transactions due to the perception among some that the trade is not worth it.  If the government is taking (TAXING) a large percentage of the trade, often times the trade is borderline ‘worth it’, and the tax rate makes it not ‘worth it’, thus the trade does not happen.  

Since ALL trades make people on both sides of the trade better off; trades that do not happen because of the tax, stops both sides of being better off.  The Laffer Curve deals mostly with tax revenue dropping off as the rates go up, however the more important lesson is economic activity drops off because the tax makes the trade not ‘worth it’. 

Retirement planning SHOULD be, that you build up assets during your working years to allow you to retire and live off those assets in your elderly years.  The important part here is that you build up assets.  Government created a system where you pay in to the Social Security system, however they do not build up assets.  They have to tax people at the time you need to collect your retirement, in order to give you your money back.     
In 2007-2008 the government tried to ‘give’ everyone $300 through the tax code as a stimulus.  This was mostly playing with timing.  The taxes did not change; they just gave a lump sum one time and deducted a little extra in paychecks the rest of the year.  This ‘giving’ of $300 was taken from them a little per paycheck.        
In conclusion, government should only be taxing us for the things only government can do.  The Haley2024 plan is roughly 10% total for all three levels.  The tax code should just raise money, not redistribute money.  Government should only go in debt to protect freedom in a war and that should mostly be planned ahead.  Retirement planning should not be run through government but the point here is that assets should be accumulated, not a pay as you go system.   


I'm planning to start website where people can post projects and buy projects. Do you think it is a good idea?


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    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.


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