A fat man resting on a thin man’s back

Tax reform is pretty easy, if you see what you need to do. For governments, tax reform typically means finding some way to get more money to spend. But not everyone thinks so, not even every government. In the midst of everything else, Israel is in the middle of an economic boom, and part of it has been driven by cuts to taxation, but also by cuts to spending. The article begins with these words, “since I’m a big fan of the Laffer Curve, I’m always interested in real-world examples showing good results when governments reduce marginal tax rates on productive activity.” But in the body of the story, we find this image.

“Netanyahu explained that the public sector had become a fat man resting on a thin man’s back. If Israel were to be successful, it would have to reverse the roles. The private sector would need to become the fat man, something that would be possible only with tax cuts and a trimming of public spending. …Government spending was capped for three years.”

This story, on the other hand, comes from the United States with a focus on Elizabeth Warren, the Democrat Senator from Massachusetts. She’s looking to raise taxes on the largest American businesses because she thinks their rate of taxation is too low. The article is titled, Head in the Clouds from which we find:

Elizabeth Warren must believe that somehow you can disconnect reality and put it into a bubble. Like most Progressives she can’t seem to understand that corporations do not pay taxes, they act as tax collectors by adding taxes to all the other costs that they pay when selling products. Which means we all pay more. The problem is that we the people are running out of “more.” We can’t afford their avarice anymore.

And on it will continue because that is the nature of the beast.

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