You Can't End Poverty without Cutting Taxes

Click! → You Can't End Poverty without Cutting Taxes

In his article "You Can't End Poverty without Cutting Taxes," David Weinberger writes - "First, bigger government means less individual generosity. The more of our money government consumes, the less we give to private charities and local community members in need. Jonathan Gruber, an economist from MIT, conducted a study of the New Deal government in the 1930s, and concluded that private charity spending 'fell by 30% in response to the New Deal, and that government relief spending can explain virtually all of the decline in charitable church activity observed between 1933 and 1939.' Another study of charitable giving from 1965 to 2005 'showed that increases in state and local government welfare and education spending do reduce charitable giving.'"

You may recall that Jonathan Gruber was one of the main consultants for designing Obamacare. To avoid saying that it would tax the people, he proposed new taxes on insurance companies and employers, the cost of which - of course - would be passed on to the people. He also was fully aware that the cost of Obamacare would mean a "decline in charitable church activity" - that was one of the hidden goals of Obamacare, to undermine the work of churches. The article continues -

"Second, benevolence with other people’s money is no virtue. Advocating higher taxes on others to pay for government programs may make us feel good, but virtue requires self-sacrifice and personal generosity. Relying on the state gives us the luxury of feeling good about ourselves without having to do good."

When the tax man with a pistol in his holster knocks on your door, you open the door and he says - "Give me 30% of your money so I can give it to this gang of gypsies!" - what can you say? Do you have a free choice? There is no virtue in compulsion. You created that wealth by your labor, but will the gypsies create new wealth by investing your wealth, or will they simply consume it? There is no virtue in wasting money. The article goes on to say -

"Third, government aid is often less effective at lifting the destitute. Private charities make distinctions between people who truly need help and those who do not, as well as between those who need material assistance and those who need moral refocus, personal counseling, relationship repair or spiritual commitment. Government, no matter how well-intentioned, does not and cannot make such distinctions." See my web-page Get Your Life On Track about this point.

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