Skip to main content

THE BIG LIBERAL LIE: Liberal Lies & Distortions About Capital Gains Taxes & “The Rich.”

By October 28, 2007No Comments
Print Friendly, PDF & Email

I am so fed up with the liberal lies and distortions about capital gains and “giveaways to the rich.” Liberal Presidential contenders like Barack Obama, John Edwards and Hillary Clinton are jumping over each other to announce new tax increases for “the rich.” They say it as if being “rich” is a dirty word. As if being “rich” is something Americans deserve to be punished for. We all know that certain words are off limits- curse words, ethnic slurs, derogatory stereotypes, etc. Maybe it’s time to declare the “R Word” a slur and declare it off-limits. Maybe we should replace that dirty, negative, demeaning word “rich” with more positive terms like successful, high-achiever, super-achiever, or “All-American role model.” Now you can clearly see how important wording is. The masses support “taxing the rich.” But few Americans would rush to support punishing “successful high-achievers.” No one wants to punish “All-American role models.” It’s all in the wording and presentation. You may hate and envy “the rich,” but we all aspire to become “successful.”

Liberals use negative wording to try to pit the classes against one another to stir up anger, jealousy, envy, resentment- and most of all VOTES. That’s how liberal Democrats get elected- by dividing Americans by income, class or race. And what’s their number one whipping boy? Capital gains. All the Democrat Presidential candidates want to raise taxes on capital gains. Why? Once again, it’s all in the wording. Liberals position capital gains as “dirty” and negative. This is money that rich people use to get richer. How evil! “We can’t allow this” the liberals cry, whine and protest. Worse, they say, is the fact that capital gains are taxed at a lower rate than your income. GASP. “We cannot allow this” liberals cry, whine and protest. They position it this way so that poor people, blue collar workers, union members, and lower middle class Americans will all grow to hate rich people- but most of all, they’ll grow to hate the investments of rich people. “How dare rich people invest in homes, stocks, and small businesses- while I barely have enough money for food and rent. It isn’t fair. And worst of all- the rich get taxed lower on their passive million dollar investment returns, than I do on my $700 weekly paycheck for working 40 hours a week.” What a powerful (and effective) sound bite. But it’s also a complete distortion of the facts. I call it THE BIG LIBERAL LIE.

Here are the facts folks. Anything invested in what’s called “capital gains” has already been taxed. To tax it again is DOUBLE TAXATION. When I buy a home, stocks, bonds or invest in a new business, I’m taking gigantic risks with my savings. I could lose it all. Every penny. And I’m taking these risks with money I’ve already paid taxes on. We all pay income taxes. “The rich”- those terrible people you hate and are envious of- already pay 80% (or more) of America’s income taxes. They are only able to invest in real estate, stocks, bonds, and businesses with the money they have left AFTER paying high tax rates. What’s wrong with that? What our liberal Democrat friends aren’t telling us is that the only way out of poverty in America (or anywhere in the world) is through investment…is through risk…is through capital gains. You must invest (risk) your after-tax monies in something that will produce profit while you sleep. Why would you have to be punished for that? Why would government want to discourage people from investing in America? Why would liberal politicians want their voters to ignore the only opportunity they have for upward mobility? Could it be because keeping voters poor, hopeless, helpless, clueless, ignorant and angry at “the rich” also keeps those same voters motivated to support liberal Democrats? Now that’s evil.

Capital gains is the only ticket out of poverty. The only ticket to success and upward mobility. You must find a way to get your money to work for you while you sleep. To earn interest and appreciation 24 hours a day while you’re working, playing, eating, shopping, and sleeping. There has been only one proven way out of poverty for since the day that America was founded- investment into real estate, stocks, and small business. You must invest your after-tax money to succeed; to save; to build success and wealth; to beat inflation; to pay for your kid’s college education; to pay your taxes and have anything left for retirement. Is that bad? Shouldn’t we strive to encourage investment of after-tax savings to create generations of productive, upwardly mobile Americans? Why would we want to discourage that? Punish that? All this investment is good for America. Turn off the faucet and slow (or stop) investment by raising capital gains taxes (so the risk is no longer worth it) and stocks plunge, real estate collapses, business stagnates, jobs are lost by the millions. You know what you call that? France.

Or let’s take an extreme example of liberal philosophy gone terribly wrong- Cuba. No one worries about capital gains in Cuba- because in a high-tax socialist or communist country, after government takes their cut, there is nothing left to invest. Liberals talk all day about “fairness.” Life is completely fair in communist or socialist countries. In liberal utopias like that, taxes are so high that EVERYONE lives in poverty and misery. Everyone lives in broken down shacks, drives cars from 1950, buys groceries in ramshackle supermarkets with bare shelves, rations food, and rations health care. Isn’t fairness grand? That’s what happens when liberal ideas are taken seriously.

America is the richest nation in the world because we encourage risk, we reward investment, we honor wealth (except for self-hating liberals), we reward success. Thank God for capitalism and democracy. Thank God for low tax rates that motivate citizens to risk their savings by investing in IBM, Microsoft, Exxon and McDonalds. That willingness to risk our life savings in real estate, stocks and business is what has created the greatest economy in world history. That is why we have created more small businesses, more jobs, more home ownership, and more self-made millionaires (including me) than anywhere else in the world. That’s why a fat, negative, unappreciative, liberal slug like Michael Moore is able to make $100 million by creating films that attack, demean and denigrate his own country (and capitalism).

Can you imagine? Michael Moore is the greatest example of how great our country is. In Cuba you can support your government and your reward is a lifetime of rationing, sacrificing, misery and poverty. In America you can demean and denigrate everything this great country stands for and yet you are rewarded with a fancy mansion in Beverly Hills, servants by the dozen, daily massages, and vacations at Four Seasons Resorts. And of course the bonus is the undying admiration of bleeding-heart, limosine-liberal, Hollywood hypocrites. What a great country!

But I digress. Back to capital gains taxes. Liberal ideas are so foolish, ignorant, and naive. Obama, Edwards, Hillary and their liberal friends want to raise capital gains tax rates. They position it as punishing “the rich.” I see it very differently- they are punishing all older Americans. They are making life miserable for those 55 and older. They are making college unaffordable for the children and grandchildren of millions of over-taxed Americans. They are making retirement impossible, or at best, postponing it for an entire generation of 50 year olds. They are ruining the golden years for those older Americans already out of the rat race. Higher taxes on passive investments (capital gains, dividends, interest) are an unmitigated disaster for anyone nearing retirement or already retired.

In reality we should be eliminating capital gains taxes altogether. I propose the elimination of capital gains taxes for all Americans 55 and older. That would mean that Americans could retire with far lower taxes, far lower burdens, far lower stress, and a far lower “monthly nut.” Why should we not reward older Americans for a lifetime of hard work and sacrifice? After working a lifetime- often working ourselves to death- why shouldn’t the reward be lower taxes- which creates extra money for peace of mind, for golf, for cruises, for eating out every night, for paying for our grandkid’s college educations. Let’s stop punishing people for saving (and slaving) their whole lives. Let’s reward them with lower taxes so they can retire early, or retire with peace of mind.

Elimination of taxes on capital gains, interest and dividends for Americans 55 and older would encourage all Americans to work hard, save, invest, and look forward to retirement. It would boost the entire American economy. It would eventually trickle down to all of us- in the form of a robust stock market; thriving real estate market; more investment in small business which translates to more jobs; more spending by older Americans which translates to economic prosperity; and of course upon their death- more money for their children, grandchildren and charity. What an economic boom. What a win/win.

Here are a few important questions to ponder. Are liberals against old people? Do they think older Americans should pay higher taxes that force them into miserable golden years? Or force them to never retire? Are liberals against older Americans enjoying life? They must be. Why else would they support older Americans paying more taxes on dividends, interest, investments, and capital gains? Passive investments are what older people live on after retirement. Remember, they no longer have a job. Elminate capital gains taxes and instantly, older Americans could retire on half the income. What a wonderful gift to the people that have worked and sacrificed and slaved to create a better life for themselves and their families.

Anyone 55 or older would have to be crazy to vote for any liberal Democrat politician. Afterall, these politicians want to punish you, tax you to death (literally), force you to work until the day you die. They don’t want you to play golf, or take a cruise, or eat out with your own hard-earned money. They think your money is THEIR money. They think your retirement is better spent slaving away until the day you die- all the while paying higher tax rates on everything you earn. After you’ve worked, slaved and paid high taxes your whole life- liberals want to raise tax rates on the money you have left! They want to DOUBLE TAX you to death (literally right to your grave).

It’s time for a new way to think about taxes. High tax rates are about slavery. They make you work harder, work longer, work forever- all for the government. It’s YOUR money. It’s YOUR property. You deserve to enjoy the fruits of your labor. Liberals are lying, distorting and scheming to steal more of your hard-earned money; to force you to work more hours to pay for their spending; to force you to postpone or eliminate retirement. Why do liberals want to spend ever higher amounts of your money? So they can buy the votes of people too ignorant to understand that the very policies they are voting for are keeping them poor, helpless and hopeless. Don’t let them do it. It’s time for a change in thinking. It’s time for a change in political leadership. It’s time to fight to keep more of your own money. It’s time for a 21st century Boston Tea Party. It’s time to abandon the failing 2-party system that is screwing you- the taxpayer. It’s time to vote Libertarian for the first time in your life. It’s time to ROOT for Liberty. ROOT for freedom. ROOT for America.

Wayne Allyn Root is a Libertarian Presidential candidate. For more about Wayne and his bold stands on important political issues,