Revenue to the IRS plunged by 34% in April when turnover is compared year to year. We all know that the economy is suffering, so tax revenues will naturally fall. But, the big and never reported story is the main reason for the decline. The US has tied its revenue cart to the super-wealthy. I have banged this drum many times in the past, but as the Rev J Wright likes to say, "America's chickens are coming home to roost."
The redistributionist tax code of the USA is manageable in the good times. We take 40% from the top 1% and distribute it to the bottom 45% through tax credits and services. The problem occurs when companies lose money and capital gains turn into capital losses. Many of the top 1% are small business owners who pay taxes based on their company's income. No income, no taxes! Yet the government keeps spending (or in this case increases spending!). When 40% of the revenue is tied to a very small group, you court disaster.
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This is a blog of cynicism and satire aimed at critiquing political and religious social trends. Most articles will have an edge while a few articles will seem bland.
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