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A Social Contract You Can’t Refuse

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Massachusetts U.S. Senate candidate Elizabeth Warren really worked up “progressives” with a rant about “fair taxation.”

“There is nobody in this country who got rich on his own — nobody.”

As A. Barton Hinkle points out, no one suggests otherwise. But the real meat of her argument is worth studying . . . for a peculiar pathology in logic:

You built a factory out there? . . . You moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police-forces and fire-forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory — and hire someone to protect against this — because of the work the rest of us did.

Upon this rests her case for ramped-up progressive tax rates.

Apparently, according to Ms. Warren, successful businessfolk are takers only. But all along the way, businesses pay for the services they hire. Indeed, they pay for roads, too. Truckers, for instance, pay special weight-rate taxes and licenses for carrying heavy loads across roadways.

Her “argument” no more justifies government taxing truckers or factories more than a similar argument, mutatis mutandis, would allow the kid who mows your lawn to reach into your wallet when you aren’t looking.

The social contract doesn’t originate the way Warren specifies. Her logic establishes only that she’s not thinking clearly about obligations and lacks an appreciation for making a business succeed.

This is Common Sense. I’m Paul Jacob.

12 replies on “A Social Contract You Can’t Refuse”

Unfortunately, this is the unbalanced mindset of Obama’s government and the WHOLE DEMOCRAT PARTY. If you say not every Democrat is a Marxist, name me one that voted AGAINST the health-care takeover. And, these people are actually in the minority in this country! How can millions of good, America-loving people let this happen? Answer: They were asleep for years and went about their business building their factories that supported this Elizabeth Warren communist and the Democrat party for years. Now, however, they are AWAKE. Obama actually may turn out to be a net GOOD for this country. All that is left is to find this era’s Ronald Reagan. Chris Christie made a good showing last night. He still says “No”, though. Hoping and praying for a Reagan incarnate here!

Warren is thinking clearly and is absolutely right. Big business must pay it’s fair share of taxes. It shouldn’t be the burden of American workers to pay more than big business.

Average Federal Income Taxes Paid, as Percent of Income

Income
Average tax rate

Under $75K
6.6%

$75K to $100K
8.5

$100K to $200K
11.9

$200K to $500K
19.6

$500K to $1M
24.4

$1M to $1.5M
25.3

$1.5M to $2M
25.6

$2M to $5M
25.8

$5M to $10M
25.4

$10M or more
22.6

Looks like the billionaires are getting a break, and so are the workers. It’s the job providers in between that are taking the biggest hit, which limits their ability to build and create more jobs.

No idea where or how anyone could come to the conclusion that the workers are paying more than big business. Or is that a Huffpo talking point?

There was no mention as to whether Ms. Warren was brunette,red-head, auburn hair or BLONDE. If BLONDE, they speak a DIFFERENT language.

[…] Common Sense with Paul Jacob – A Social Contract You Can’t Refuse: Her “argument” no more justifies government taxing truckers or factories more than a similar argument, mutatis mutandis, would allow the kid who mows your lawn to reach into your wallet when you aren’t looking. The social contract doesn’t originate the way Warren specifies. Her logic establishes only that she’s not thinking clearly about obligations and lacks an appreciation for making a business succeed. […]

“You were safe in your factory because of police-forces and fire-forces that the rest of us paid for.”

She thinks that business owners didn’t pay taxes (and they typically paid more taxes) with her “the rest of us paid for” comment. She didn’t pay to start the business.

Taking her thinking further, government employees shouldn’t be paid or compensated for their work, because government exists for the people, not for government. Then we won’t need taxes and everyone will benefit equally.

I was cleaning out my inbox and decided to re-read this article before I deleted it. Something struck me as interesting that would not have the first time. Ms. Warren says: “You didn’t have to worry that marauding bands would come and seize everything at your factory — and hire someone to protect against this — because of the work the rest of us did.”

Tell this to Gibson guitars. But who would have thought the marauding bands would be your own government.

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