9/10/2015
By Charles Payne, CEO & Principal Analyst

They say that at the end of the day, elections are about pocketbook issues which should mean we all root for plans that will generate a wave of prosperity that everyone can ride.   Instead, over the years, not only have voters become fixated on how they will be rewarded specifically but more recently many have settled on the idea of simply punishing others as if somehow it will make things better.

Sure, it’s schadenfreude, but it does nothing to make your paycheck go farther, help little Johnny learn to read or stops the post man from ringing twice.

It’s early, and details are still to come, but what I’m hearing so far on tax policy is more of the same.  Punish certain people and reward others in ways that deter success.  The latest comes from Jeb Bush whose tax plan promises 15 million fewer payers and increases the earned income tax credit.  President Obama pushes the notion the federal government should make work pay with tax credits.

This intrusion provides cover for the bigger ruse of higher taxes and encroaching deeper into corporate coffers.

While the same tide would lift all ships during economic good times, there should also be a policy of all hands on deck.  Every adult American should have skin in the game and pay taxes.   Right now, that’s not the case.  The bottom fifth income range earn 13.8% of the income but have a negative 3.2% share of income tax.

For this reason, I think it’s time Americans consider a flat or fair tax system that removes all the gifts and freebies and get us all into the game.   I understand it makes buying votes harder, but it’s patriotic, fair and smart.

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Charles Payne
Wall Street Strategies

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