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Fiscal Segregation – The Socially Acceptable Discrimination


Fiscal segregation, a term I think adequately describes our current tax structure as well as the divisive talk about the rich paying their fair share coming from our leaders in Washington as well as some in the media. The subject of course is nothing new. But while I have always been disappointed by the left on their definition of fair, I can now say the majority of Republican presidential contenders need to rethink their own tax plan. It’s time to remove fiscal barriers and get everyone back in the game.

It started in 1894 when a flat tax was declared unconstitutional. Shortly after in 1913 a progressive income tax was able to be put into place thanks to the passage of the 16th amendment. The rest is history, including a top tax rate of 77% in 1918 as well as the absurd rules, loopholes, and handouts that have been instituted and changed over the last 98 years. Since its inception the tax code has been used to divide people, pander to specific groups, and amass political power. Not to mention it has been the needless subject of political campaign debate for as long as I can remember, being used to gain favor with one group of people at the expense of another.

Fast forward to 2008 and turn up the rhetoric. Even before President Obama took office he had been touting the concept that the rich need to pay their fair share and recently with the introduction of his jobs bill he has turned up this income tax rhetoric even more. Those on the right have tagged the jobs plan as nothing more than class warfare for its tax increases on the rich. While the president has reiterated that the rich need to pay their fair share and the tax increases in the bill are nothing more than simple math.

Currently we see this divisive mentality being taken to the streets with the Occupy Wall Street movement. Looking through the movement’s online forum reveals that many just want a handout or a free pass. They want the government to resolve so called fiscal unfairness by taking from one group of people and giving the protesters more money.  To be fair however, it does seem there is a small minority that are interested in some decent reforms to be discussed another day.

Now with the 2012 election cycle heating up we have Republican presidential contenders bringing forth their own tax plans. Gov. Rick Perry has a seemingly fair plan that upon further inspection will in all reality do nothing to change the fiscal divide in the country. There is however a contender that has introduced an actual fair tax plan and his name is Herman Cain, his plan, 9-9-9. This plan was made fun of by other contenders, none of which have an actual fair plan themselves. The plan was called a monstrosity and nothing more than a windfall for the rich in the media. Unlike plans from the other candidates, Cain’s plan actually reforms the tax code by throwing most of it away. This alone most likely would save the government billions. But for the political establishment it does much more. It eliminates power, corruption, and election cycle pandering to various groups. It gets everyone in the game. Something that is key in getting the government under control and the country back on the right track. President Lincoln said that a house divided cannot stand and I believe the same applies to groups of people. The current tax code has been used by political groups and politicians since its inception to divide the people and the country.

So what is the connection between the Presidents jobs bill and Cain’s 9-9-9 plan? A contrast in what constitutes fairness. The left is always talking about fairness. However, their words and actions on the subject of income are anything but fair and lean to the side of socially acceptable discrimination. The President says the rich should pay more tax just because they have earned more money than others. But what exactly is fair about talking a greater percentage of money from someone based on their income? If that is really the fair thing to do, why not enact laws that deem people with more money must pay more for goods? Why should someone making $100,000 a year pay the same for milk or a car than someone making $50,000 a year?

We could spend an eternity enacting laws that redistribute wealth, trying to make everyone exactly equal. But freedom does not guarantee equal wealth or equal possessions but only an equal opportunity to follow your own path. In fact using government policy in this way is a very a very slippery slope and leads the loss of freedom. The solution to ensuring freedom is simply enacting a completely fair taxation system that is income blind, eliminating discrimination. After all, when the rich are no longer rich who do you think they will be coming after next?

By getting everyone in the game, meaning everyone pays an equal share of their income in federal taxes, even Warren Buffett. More people will be involved in the government process and a political power wedge will be dissolved. Look at an example in your own life comparing someone spending your money verses someone spending someone else’s money. Where did most of your interest lie? If someone wasted your money, spent it on something you really didn’t need, or you had to pay for someone else’s mistake or irresponsibility you would be more involved in how your money was being spent. The same applies to government and taxes. Getting everyone in the game will result in more people paying attention to how the government is spending tax dollars. It will also allow political candidates to actually debate issues instead of pander to various groups. We don’t need tax rebates for this group or special deductions for other. We need candidates working on real issues like the economy, unemployment rate, national security, and cutting government waste.

Now I am sure some will demonize me for using the term “segregation” to describe this current argument about fair taxation. However this has nothing to do with race. This has to do with the concept of dividing people into groups based on wealth and using that division for political gain and power. This is something that is bad for our country, its people, and freedom.

Cain’s 9-9-9 plan is one reason among several why Herman Cain has jumped to the front of the pack my book. While I don’t agree with a 0% capital gains tax without 5 years of investment, I can look past that for a plan that brings real fairness back to table. Not to mention a huge reduction in the tax code. After all, how many low income families have to pay someone to do their taxes? We need more politicians who don’t want to make a career for themselves in politics. Leaders who are in the race because others have lost focus. Leaders not afraid to go against political correctness and can stand up for real fairness against both sides of the aisle.

Disclosure – No, I am not rich, nor part of the so called 99%. I am just an average hard working middle class American.

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This post was submitted by American_Innovation.


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