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The Benefits of Cutting Taxes: Empowering the People, Limiting Government Overreach

by Jordan C. Dabble 14 Sep 2024 0 Comments

Taxes are the lifeblood of any government, providing the funds needed to run public services, defense, infrastructure, and more. However, the debate over how much we should pay in taxes—and how those funds are allocated—has never been more critical. Cutting taxes is often framed as a loss for public services, but what if reducing the tax burden actually empowers citizens, curbs government mismanagement, and rebalances the power dynamic between the state and the people? This article explores the benefits of tax cuts, illustrating how they can be a catalyst for better governance, economic growth, and individual empowerment.

Money is Power: The Flow of Wealth from Citizens to Government

The adage “money is power” captures the essence of why tax policy matters. Every dollar collected by the government is a dollar that could have been in the hands of an individual, a family, or a small business. When the government collects high taxes, it amasses more power, influencing various sectors of society through spending decisions that may not always align with public interest.

According to the Congressional Budget Office, federal tax revenue exceeded $4.9 trillion in 2023. That’s nearly 20% of the nation’s GDP, siphoned directly from the pockets of American citizens. This enormous sum of money grants the government not only the ability to fund essential services but also the leverage to engage in questionable spending on foreign wars, bloated bureaucracies, and inefficient programs. As power consolidates within the hands of government officials, citizens are left with less autonomy over their own finances, decisions, and lives.

The Problem of Mismanagement and Misaligned Priorities

One of the most glaring examples of government mismanagement is its expenditure on overseas conflicts. The Costs of War Project at Brown University estimates that the U.S. has spent over $8 trillion on wars in Afghanistan, Iraq, Syria, and other regions since 2001. While national security is crucial, the allocation of such vast sums raises questions about priorities, especially when American infrastructure crumbles, healthcare costs soar, and families struggle to make ends meet.

Cutting taxes would reduce the government’s cash flow, forcing it to prioritize its spending more judiciously. When funds are limited, the incentive to cut wasteful spending on unnecessary military interventions or lavish government contracts becomes stronger. This fiscal restraint could redirect resources towards projects that directly benefit American citizens, such as infrastructure improvements, education, and public health.

Tax Cuts: A Direct Investment in the People

When taxes are reduced, individuals and businesses have more money to spend, save, and invest. This stimulates the economy, driving growth and creating jobs. According to the Tax Foundation, the Tax Cuts and Jobs Act of 2017 led to increased business investment, wage growth, and economic expansion. Lowering the corporate tax rate from 35% to 21% allowed companies to invest in new technologies, expand operations, and raise employee wages, illustrating the direct connection between tax cuts and economic vitality.

Similarly, individual tax cuts empower families to make choices that best suit their needs—whether it's saving for college, buying a home, or starting a business. The Heritage Foundation found that middle-class families saw an average tax cut of $1,400 in 2018 under the Tax Cuts and Jobs Act. For many, this represented a meaningful boost to their disposable income, demonstrating how reducing the tax burden translates to real-world benefits.

Defunding a Government Corrupted by Power

Tax cuts not only empower individuals but also serve as a check on government overreach. A government that is flush with cash is prone to corruption, inefficiency, and the pursuit of agendas that may not align with the public’s best interests. In contrast, a government that faces fiscal constraints must become more accountable to taxpayers, focusing on core responsibilities and cutting down on waste.

Transparency International consistently ranks the U.S. lower on its Corruption Perceptions Index compared to other developed nations, highlighting the need for greater accountability in government spending. By cutting taxes, we can limit the funds available for pork-barrel projects and political favors, forcing government agencies to operate within stricter confines and focus on serving the public rather than themselves.

Redirecting Funds to Essential Projects

One of the most critical areas in need of funding is America’s aging infrastructure. The American Society of Civil Engineers estimates that the U.S. needs to invest $2.6 trillion by 2030 to bring its infrastructure up to a state of good repair. By cutting taxes, we enable private citizens and businesses to invest more in local communities, driving the kinds of improvements that government alone cannot achieve. Public-private partnerships become more feasible, and innovation thrives when funds are not locked within bureaucratic red tape.

Similarly, reduced tax burdens can foster greater support for American families. Childcare, education, and healthcare costs are at all-time highs, making it difficult for many households to achieve financial security. Lowering taxes puts money back in the hands of parents, allowing them to make decisions that best suit their children’s futures rather than being dependent on underfunded and often inefficient government programs.

The Reallocation of Wealth to the American People

Ultimately, cutting taxes shifts wealth away from the hands of politicians and bureaucrats and back to the people who earned it. This reallocation of resources can invigorate the economy, bolster savings, and increase investment in communities. A reduction in tax revenue does not mean a collapse of public services; rather, it necessitates a smarter, leaner approach to governance.

By limiting the funds available to a government that has often been plagued by mismanagement and corruption, we create a system where the focus returns to the needs of American citizens. We defund unnecessary foreign entanglements and boondoggles, redirecting resources toward infrastructure, education, and family support. This reallocation of wealth empowers individuals and strengthens the nation from the ground up, fostering a more resilient and prosperous society.

The Rise in Wealth of Politicians: A Closer Look at Net Worth Before and After Public Office

One of the most glaring issues with the current state of American politics is the significant increase in the net worth of many politicians during and after their time in office. While public service should be about serving the people, many politicians seem to benefit financially from their positions, raising concerns about conflicts of interest, ethical lapses, and the potential misuse of power. This section explores how the net worth of several prominent politicians has changed over time, illustrating why reducing the government's financial resources could also reduce opportunities for personal enrichment.

Elizabeth Warren

Senator Elizabeth Warren, a vocal critic of Wall Street and champion of the middle class, had a reported net worth of approximately $3 million in 2011. By 2023, her estimated net worth had grown to around $12 million. While some of this increase can be attributed to book deals and investments, it raises questions about the financial benefits that can accrue to politicians while in office. Warren’s rapid wealth accumulation contrasts sharply with her message of economic populism, highlighting a dissonance between public service and personal gain.

Barack Obama

Former President Barack Obama entered the White House with an estimated net worth of about $1.3 million in 2008. After two terms as President, his net worth surged to over $70 million, thanks to lucrative book deals, speaking engagements, and media ventures. While his financial success is largely due to his post-presidency endeavors, the rapid increase raises questions about how political connections and influence can translate into personal wealth long after leaving office.

Joseph Biden

President Joe Biden’s financial journey offers another striking example. When Biden left the Vice Presidency in 2017, his net worth was estimated to be less than $1 million. By 2020, it had ballooned to over $9 million, driven by book deals and speaking fees. Biden's wealth increase during his years out of public office shows how former officials can leverage their political stature for personal gain, blurring the lines between public service and private enrichment.

Kamala Harris

Vice President Kamala Harris, who began her political career as a District Attorney in California, saw a substantial increase in her wealth over the years. In 2017, her net worth was around $3 million. By 2021, this had grown to approximately $7 million, largely due to her husband’s law firm earnings, book deals, and other financial ventures. This rapid accumulation of wealth, while not illegal, underscores how the position of power can open doors to lucrative opportunities.

Bernie Sanders

Senator Bernie Sanders has long portrayed himself as a champion of the working class, often railing against the “millionaire and billionaire class.” However, Sanders himself joined the ranks of millionaires in recent years, largely through book royalties. When he first entered politics, Sanders had modest financial means. As of 2023, his net worth was estimated to be around $3 million. While Sanders’ rise in wealth is relatively modest compared to others, it still raises questions about how public figures can accumulate significant wealth while advocating for economic equity.

Alexandria Ocasio-Cortez (AOC)

Representative Alexandria Ocasio-Cortez has often positioned herself as a voice for the underrepresented and working-class Americans. Before her political career, she was working as a bartender with student loans and minimal savings. While she has not accumulated vast wealth, her rising influence and access to platforms that offer speaking fees and book deals indicate potential avenues for future wealth generation. The attention on AOC's income highlights how even newer politicians can quickly find themselves in a position to capitalize on their public service.

Nancy Pelosi

Former Speaker of the House Nancy Pelosi's financial trajectory is one of the most scrutinized among politicians. With an estimated net worth of over $120 million, much of Pelosi's wealth is tied to her husband's successful investments. However, the close relationship between her legislative work and her husband's stock trading activities has drawn criticism and accusations of insider trading, illustrating the blurred line between public service and private profit.

Mitch McConnell

Senate Minority Leader Mitch McConnell has also seen a significant increase in wealth during his time in office. His net worth was estimated at around $3 million in 2004, but by 2023, it had grown to over $30 million. While McConnell attributes much of this increase to an inheritance received by his wife, questions remain about the broader implications of politicians accruing such wealth while in office.

In Sum

Cutting taxes is not about undermining the government; it’s about rebalancing the scales of power and ensuring that the wealth generated by American workers stays in their hands. It’s about defunding corruption, curbing mismanagement, and prioritizing spending on the areas that truly matter. When citizens keep more of what they earn, they gain the freedom to make choices that best suit their lives. And in doing so, they create a more accountable, efficient, and responsive government that truly serves the people.

The dramatic rise in wealth among politicians—often while they serve the public or immediately after—underscores the problematic intersection of money and power. It illustrates how the current system enables public servants to reap substantial personal financial benefits from their roles, whether through book deals, speaking fees, investments, or other ventures that leverage their political influence.

Cutting taxes and reducing the financial power of the government can serve as a corrective measure to curb the opportunities for personal enrichment among politicians. By shrinking the pool of government resources, we also limit the capacity for corruption, ensuring that public service remains focused on serving the people rather than becoming a pathway to personal wealth. Tax cuts, therefore, represent not only a means to empower citizens but also a critical step toward defunding a government apparatus that has often been co-opted by those seeking to enrich themselves at the expense of the American public.

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