There seems to be a bit of confusions when it comes to the matter of taxes. For some reason a large swath of people believe that lower taxes are “paid for” by someone else (and usually it’s low earners who think they are being ripped off).
Have a conversation with a group of young people and you’ll undoubtedly hear phrasing along the lines of “paying for the tax cuts” as though that’s even possible.
Things only get more confusing for the ill-informed when outlets like the Wall Street Journal run headlines such as “Official Analysis Finds Tax Cut Doesn’t Pay For Itself”, thus muddying things up even further.
Here’s the thing: it doesn’t cost money to let people keep their money.
Allow me to rephrase: you keeping your money doesn’t cost anyone anything. You just keep your money. That’s it. Done.
The problem is the government has decided they know what to do with your money better than you do, and a lot of people seem to agree. Rather than taking a second to think about how the government could spend less, the media, and large groups of people, demonize those who stand to gain the most from lower taxes.
Millionaires and billionaires on the “left” (such as Michael Moore, Mark Cuban, Oprah) have openly criticized lower taxes, but the thing is they are allowed to pay more than the minimum required. If they wanted to, they could write the government a check for whatever they want, and the treasury department won’t turn it down. Criticizing and talking a big game is great for headlines, but actually putting their money where their mouth is? Well, that’s not going to happen.
The point is that tax cuts don’t cost anyone anything. Nobody is reaching into the pockets of the poor and giving the money to the rich, no matter what you see on TV, The Young Turks, or wherever folks are spewing this nonsense.