Unsustainable Tax System

As tax day approaches for us all, you may be surprised to find out how few of us actually pay any income taxes. That's not a healthy situation for a democracy if only a few are paying...because many are simply reaping the benefits.

We have said in the past that the whole system simply get's too top heavy. Now today, Ari Fleischer has an impassioned articel in the Wall Street Journal we all should read.

If you thought Bernard Madoff's Ponzi scheme was bad, wait until you hear about the inverted pyramid scheme the federal government is working on. While Mr. Madoff preyed on people who trusted him with their money, the federal government has everyone's money, and the implications of its actions are worse.

Picture an upside-down pyramid with its narrow tip at the bottom and its base on top. The only way the pyramid can stand is by spinning fast enough or by having a wide enough tip so it won't fall down. The federal version of this spinning top is the tax code; the government collects its money almost entirely from the people at the narrow tip and then gives it to the people at the wider side. So long as the pyramid spins, the system can work. If it slows down enough, it falls.

Read the full article here; http://online.wsj.com/article/SB123958260423012269.html

As we have been saying all along...the math simply doesn't work.