If you were told you have cancer, would you want Congress to: a) eliminate taxes on companies developing a cure, or b) eliminate their profits?

That strips the great debate right down to the nubs, now, doesn’t it? Are you a free market capitalist or a state socialist?

Choose now, because once you are diagnosed with a potentially fatal disease it will be way too late to change your mind. As for me, I’m betting on Team Profit.

Because the sure cure for cancer is not going to be discovered; it does not exist. It must be created through someone’s hard work; and it will be the rightful property of those people who develop it. They, not society, will own it.

The opportunity to profit from what you own is what makes people work harder, smarter, and most importantly when it comes to cancer cures, faster. Taxing those profits diminish the incentives to work hard, smart, and fast.

In a free market, whoever gets there first with the sure cure for cancer will become wealthy beyond comprehension – and well-earned would be an understatement. But when that happens, the state socialists will start whining about the income gap.

So here is question two - are you better off with: a) an income gap and your cancer cured, or b) pay equity and early death? Welcome, defectors from Team Tax.

Now at first, only rich people will be able to afford the sure cure for cancer. It will be just like cell phones and microwaves and hip replacements, where rich people will use their money and influence to be first in line.

At that point, the state socialists will be going berserk - outraged that only the rich are getting cured while the poor continue to die. They will demand that we tax the rich to even the playing field, and put a new “windfall profit” tax on the cancer cure providers.

If the world were a caring contest, that would be a good idea; but the world is a paying contest, so it’s a stupid one.

The high profits from selling the first units of the cure to the rich provide the investment capital needed to expand production and lower unit costs, making the cure for cancer available to less-wealthy people. If you tax those profits, there is no money to reinvest and the cure will be only for the rich forever.

Question three - how do you get more money out of rich people: a) giving them a cure for their cancer in return, or b) increasing their marginal tax rate? Team Tax is mow losing members faster than John Wayne Bobbitt.

The profit/investment/cost reduction cycle repeats and accelerates, so very soon the sure cure for cancer will be accessible to even the poorest members of our society. The fun will really begin when Walmart starts selling it – poor people will be doing cartwheels into the stores, while the millionaire talking heads on MSNBC will still be whining about the greeters not getting benefits.

Risk and reward, profit and loss, producing things people want at prices they can afford – this is how free market capitalism works; more importantly why capitalism works.

Profits, not taxes, will bring the sure cure for cancer to the whole of society, along with all the other products and services that improve living standards for everyone. If we want to raise living standards, it is foolish to tax profits.

If you Team Tax people would rather see people die than see someone make more money than you, then please do not lecture me about morality. If you hate profits, then you hate poor people, and it’s about time somebody called you out.

In our tax-and-grant, government-run medical research industry, the only guys making a profit are the folks selling those lapel ribbons we have been wearing for the past 30 years for all the diseases that the all the non-profits haven’t cured yet. It is taboo to criticize non-profits because they Care for a living, while we are just amateurs at it. Yeah, well.

Personally, I would rather cure a disease than show everyone how much I care by wearing a ribbon. That is why I am a free market capitalist; that is why I am a Libertarian. That’s why you should be, too. Now, before you contract a fatal disease.


“Moment Of Clarity” is a weekly commentary by Libertarian writer and speaker Tim Nerenz, Ph.D. Visit Tim’s website www.timnerenz.com to find your moment.

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Comment by Tim Nerenz: Moment of Clarity on May 7, 2010 at 11:49pm
I am glad you have enjoyed this post; it seems to have struck a chord with people. Thanks for taking the time to leave comments, I appreciate your encouragement and ideas.

Tim
Comment by Mike Mott on May 7, 2010 at 11:35pm
Liberals claim that government needs to provide a safety net has some dissonance in addition to what you've mentioned.

1. According to the Founders, which means it is codified in the Constitution, governments are created to protect the natural rights of its citizens. These rights, among them are self defense and keep their property, belong to each citizen and one citizen can't take them from another. It is not OK for some of the citizens in a neighborhood to force one or two of their neighbors to fork over money for a purpose they determine worthy -- say a down payment on a car. If citizens can't do it then they can't grant the government the power to do it either. Cash for Clunkers is an example of a program that violates the natural rights of man -- yet liberals claim to be for the rights of the people. Though they may claim it, their actions speak otherwise.
2. Charity, as with point #1 it is illegitimate for government to take money from some citizens to give to another. There is a 2nd loss when government does this and it is an Adam Smith moment. When a person voluntarily contributes to another they are enriched and a human connections has been made. When a bureaucrat inserts themselves into this transaction then an opportunity for enrichment, as well as a validation of one's humanity, has been lost. Government giveaway programs therefore are detrimental to our humanity -- yet liberals claim to be the compassionate ones.
The Founders knew these things; we didn't learn our history and therefore are doomed to relearn these lessons.
Comment by Everi Mann (SENTRYMAN) on May 7, 2010 at 11:19pm
Well, that’s a mouth full.
We’ve all been micromanagers for so long now we’ve got 300 million “opinions” on how to change a light bulb,
(not “ideas” about it, because few can think their way down off the ladder thanks to liberal teachers.)
By the way, who said you could get on that ladder in the first place Johnny?
I’ve always been kind of a big picture, “free market” capitalist guy.
I think most things can be mutually exclusive if we just get out of the way.
Markets should sell
and consumers buy, free to make their own choices, that regulates price,

and governments should protect against oil in water, urine and crap in the lettuce & peanuts, monopolies, enemies foreign & domestic and the borders, PERIOD!

Not; Taxing anything and everything, including dead people
or stopping drilling, refineries, Nuclear power plant construction or a trips to Mars, and get out of the way!
Do their duty and go Home, as it’s not a career or winning the Lottery with endless lifetime annuities that We all pay for!,
Everyone should pay FLAT 15% tax
or a FLAT 10% plus a consumption tax on luxury items,
and they’ll be more money than we all need, and get out of the way!
Corporations don’t pay any taxes anyway, so tax the land the factory sits on for sewage & water and get out of the way!
Cancer cure is a misnomer. Body-Rot in all its forms will undoubtedly continue till We leave this planet, up or down,
or invent enough ways to Water-Board any Cancer out of us,
but,
I’m still waiting for Jerry Lewis to tell me MS is cured after 100 years of telethons,
so don’t give up hope or stop donating to George Clooney.
Like I stated in my book, if I can give a shameless plug:

You want a Utopia?
Travel to another planet because America is as close as You‘re going to get, and You‘re dumb enough not to see and realize that, and You are ruining IT NOW.

You want a Utopia?

Just let people have the Freedom They All Deserve as Fellow Human Beings
and Do Not Impose A Will upon any Man or Peoples!
Let Democracy and The Golden Rule be Your Compass, whether You Believe in a Higher Power or Not,...
But, Not In The Mob or The Elite or The Chosen Few! ……....All Men Are Created Equal! ...THAT SIMPLE!

…..You want America to be Socialist?
OK, 3 Wishes;
PROTECT the borders,
NOT 1 child goes to bed hungry &
All research on Children‘s diseases are totally funded by OUR Government!

....................... That‘s It! …….. That‘s UTOPIA!”…………..
Comment by DaveG on May 7, 2010 at 9:44pm
Very well said -- it is rare to catch such truth and encapsulate it in a single tablet that has such power to transform one's thinking. Your article has the power to do that, if the reader will reflect upon its meanings.

... and it is truly rare to see Laura so speechless (-:
Comment by Laura Eide on May 7, 2010 at 8:47pm
I am rarely left speechless. Everyone knows that. You have put forward the essence of what it means to succeed and prosper in a free market capitalistic society. That's why, among other things, I am a Libertarian as well. Bravo!
Comment by Mike Mott on May 7, 2010 at 7:06pm
A big amen.

 

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