Jul 8, 2025 By Dave Ball 4 min read

Editor’s note: This is the first of two parts.

The recent battle in Congress over President Trump’s tax and budget bill places before us three fundamental questions: How much power should government wield over our lives, what does fairness really mean, and what should the role of government be?

Republicans rightly see this bill as crucial to keep taxes low, encourage investment, and sustain economic certainty. Without it, expiring tax cuts mean a very real tax hike on working Americans, draining income and wealth.

Democrats, by contrast, argue the bill favors the wealthy and corporations. They’d rather funnel more revenue into government programs like health care, child care, and climate initiatives. These two positions reflect a deeper philosophical split over the government’s proper role.

Republicans trust individuals and free markets to drive prosperity and personal freedom. Government should be a fair referee, not a player picking winners or controlling outcomes. Creative destruction, the freedom to succeed or fail and to replace outmoded entities with vibrant new entities is what fuels innovation and growth.

Democrats see government as an active manager of society, propping up uncompetitive businesses, redistributing wealth to support social policy, and regulating industries in the name of fairness. But government power, once expanded, rarely shrinks and it comes at a huge cost.

Much of the tax debate hinges on claims that the bill “favors the rich.” But that’s misleading. Half of American families pay little or no federal income tax. The top 10% pays about 70% of all income taxes, and the top 1% pays over 40%. Cutting tax rates inevitably benefits those who pay the most because a percentage cut of a large number is a larger amount. The result, however, is that more resources become available for reinvestment.

Democrats are fixated on “make the rich pay their fair share.” But how much is fair? Shouldn’t the 90% of families who pay only 30% of the taxes also carry a reasonable portion of the load? Taxing the wealthy endlessly won’t solve every problem, and there simply isn’t enough money among “the rich” to fund all of Washington’s ambitions without harming the economy.

Understand clearly, the wealthy don’t hoard cash under mattresses. They invest in businesses, jobs, and innovation. Higher taxes on returns and profits stifle that investment, risking fewer jobs and slower growth. It’s not the poor who create jobs; it’s capital.

Some argue corporations should pay more to spare individuals. But corporations don’t pay taxes in isolation. All taxes eventually impact individuals, consumers through higher prices, workers through lower wages or fewer jobs, and shareholders through reduced investment value. Higher corporate taxes are hidden taxes on everyone.

Of course, government has a role. Well-designed programs can strengthen society. Welfare and support payments circulate to some degree back into the economy, and investments in health and education help build a skilled workforce. Bloated spending creates dependency, crowds out private investment, and fuels debt.

Democrats insist higher taxes, specifically on “the rich” and corporations, can pay for endless programs, but there are limits. Punitive tax rates risk pushing investment and capital to other markets, frequently overseas where it can become a competing investment. While revenue and investment decline, government grows bigger, less efficient, and more intrusive. This is a driver of economic collapse.

The alternative to ever increasing cost is spending discipline and the reduction of waste and fraud. These, in turn, demand tough choices about entitlements, defense, and other programs many voters and special interests fiercely defend.

Where’s the balance? It lies in keeping taxes low enough to drive growth, funding only programs that provably deliver real value, spending wisely to avoid waste and avoiding out of control debt that risks financial collapse.

Ultimately, this debate is bigger than tax rates. It’s about whether the government should merely offer support or try to steer every aspect of our economy and lives. History shows that people and economies are more vibrant and successful if we keep the government’s reach in check.

So, to answer the three questions initially posed: the less power government wields in our lives, the more human initiative and creativity will guide our direction. This is freedom. The role of government is to protect the people and provide a level and unbiased environment in which all may compete. When these exist, we see prosperity and personal freedom emerge. The “One Big Beautiful Bill” is a start in this direction.

Dave Ball is the former chairman of the Washington County Republican Party.