Rich people earn money by assuming the risk of employing workes and taking a risk premium for that which is most often not worth the benefit of assuming that risk, nor does it realize that workers themselves bear intrinsic risks by taking a position rather than day labor.
Bishop Sheen preached that profit sharing was an appropriate corrective. The Church teaches that some kind of social democracy with benefits for families, the elderly and unwed mothers is (from Leo XIII to Pius XI to Paul VI to Benedict XVI).
Our experience is that when the Executive Class gets a tax cut, they get an incentive not found when rates are higher to cut labor costs through deunioization, wage cuts, closing factories and sending them overseas or simply letting wage increases fall behind productivity increases and POCKETING THE DIFFERENCE instead. Stealing is not earning. When taxes remove most of the bonus, employee pay grows higher and unions are not attacked.
A faithful budget would fund social programs with a subtraction VAT/Net Business Receipts Tax will offsets for firms who provide or fund these programs themselves for their workers and families and the community. A goods and services VAT would fund domestic discretionary (both military and civil) to encourage both self-funding and the elimination of pork, particularly the military kind. Overseas deployment, net intrest and debt reduction would be funded by a surtax on higher earners with graduated rates, forcing them to realize that tax cuts will be paid back by their own children, not the entire next generation. Once they realize net interest won’t be rolled over or paid by the little people, they will minimize it by paying the debt faster.
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