Investment = Spending

Posted December 24, 2014  |  Filed under Fixing The Government

I am sure that you all have heard a politician say that we need to invest in something, such as infrastructure, transportation, education, and several other things. What they are "really" saying is that they want to "spend" taxpayer dollars in these areas. And usually their spending does not do one bit of good because the money just goes to people and companies that donated to their election campaign. They make such big promises that if we spend money in education, education will get better. It hasn't! They promise that if they spend money on transportation projects, the roads will get better. They haven't! They promise that if they spend money on other things, those things will get better. Yea, right! And if you believe that, I have a bridge for sale.

I say if you want these areas to get better, reduce the taxes in those areas and let them "invest" the money to make things better in their areas. For example, if you want education to get better, reduce the taxes of education organizations so they can hire more teachers and purchase additional classrooms and equipment. If you want the roads to get better, reduce the taxes of those companies that fix the roads. They would be able to hire more people and purchase more road construction equipment and be able do a lot more. You see how it works.

The United States has the highest corporate tax in the world. If you reduce this tax and reduce government spending, things will get better. Let me tell you how this works. The government takes money from company A in the form of taxes. Then the government says they are going to invest this money to make it better. If they invest it like they say they will, they would just be giving the money back to company A. So why not let them just keep the money? The reason is that company A does not get the money back. It is usually company B that gets the money because they made a big donation to the politician's election campaign. They are simply taking the money from one person and giving it to another.

The bottom line is - please don't bee fooled by a slick politician that says they want to invest in something to make it better. They are really saying that they want to spend you tax money, and usually not very wisely.

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