ABSTRACT
Taxes are only one part of the wealth-sharing picture but are a primary mechanism of a country to share wealth with other countries and to redistribute wealth domestically. The economic picture is completely changed as taxpayers are tapped out and the entitlement model is breaking down. Governments at the federal, state, and local level are busy taking a larger cut of national income as these entities continue encroaching on backs of taxpayers. President George Bush fed the federal bureaucracy while state and local governments were increasing their take, so that total government outlays climbed as a proportion of national income. Broken promises result in people turning to government for help, but government can not recreate those promises through higher outlays and taxes. The private sector can not generate enough incremental wealth to shore up broken social promises as government taxes production as well as physical and human capital formation.
