As said by Prof. Doug Ebenstein Why Progressive Income Tax is a Danger to your Assets, then, you may be very comfortable in the United States of America. In fact, that’s precisely what he said when the Senate recently voted to endorse the latest piece of legislation by the President.
As noted, the President requested the support of the majority of senators for his latest proposal to the Democrats in Congress, which has been referred to as the ‘Paycheck Fairness Act’. The main objective of this particular legislation is to increase salaries for executives at the Fortune 500 companies.
When Douglas Ebenstein was asked about this piece of legislation, he stated, “This is obviously going to have consequences on the individual tax rates that people pay, it’s not so much on the progressive tax system.” In other words, because they are just re-drafting a tax code and they know it has too many loopholes and errors, therefore it can’t work as written.
This income tax has so many loopholes that even the majority in Congress does not know what to do with it when Congress returns from its summer recess. Actually, the list of problems does not end there.
How Progressive Income Tax is a Danger to Your Assets! – Douglas Ebenstein, professor of economics at Georgetown University
Prof. Doug Ebenstein of Georgetown University states, “There is a real danger that this progressive structure, if we adopt it, will cause a break down of the family, and destroy a foundation that has been built for the best years of American life.” That statement is unfortunate because, according to him, the U.S. has the best days of the American life.
In fact, Doug Ebenstein states, “The most important thing to understand is the fact that families really do need to make more money in order to survive.” Well, we all know that a family cannot thrive without providing their family members with something they need to live and provide for them and their families.
I find it incredible that he believes that increasing taxes on the middle class is going to help with the long term problems of the country when the progressive income tax is a danger to your assets. It may just be time to change the direction of your family and your work ethic if that’s what you’re concerned about.
Prof. Doug Ebenstein points out that, “One of the reasons is that the incentives that are in the law today are simply bad, they are absolute, they don’t allow the American people to succeed.” He continued, “They are not fair, they are not conducive to the creation of wealth, they are not structured to incentivize growth, and they are based on a legal fiction that has been challenged, has never been tested, and that we really have to break now and start over, if you ask me.”
I disagree with Prof. Doug Ebenstein because, when you look at the wealth inequality in America right now, or even Europe, we have a lot of room for improvement. Also, with our economy crashing down right now and things getting worse, not better, then he is correct, the incentives have failed.
What Prof. Doug Ebenstein really needs to understand is, “You can call it a risky proposition. You can call it a crazy proposal. You can call it a radical proposal. But it is the policy that is the most likely to create the most wealth for all Americans, not the most redistribution of wealth.
It is the policy that allows us to become a much better and a richer nation and that is a big reason why it is not a problem that Ebenstein is making now. Because of the fact that the reforms that have been adopted by the current Administration were passed through Congress and signed into law by the President, they had a free hand to enact whatever they wanted to do.