Posts Tagged ‘taxes’

When Does the Government Finally have Enough Money

May 3, 2012

I saw the following quote recently:  ”  What kind of person sees nothing wrong in cutting a teachers 50,000 salary by 20%, but doesn’t see anything wrong with a 3% tax increase on a millionaire.”

I would re-word this:  “What kind of government sees nothing wrong in taking more and more money from small business and uses the emotional blackmail of threatening to cut the salaries of public employees, most famously teachers and police.”

This first quote is too simplistic a choice, and issues revolving around pay and taxes go much deeper than this. Governments must learn to live within a budget and can’t continue to take more and more.  England thought they were faced with a similar choice between raising taxes or cutting pay. They decided the fairest thing was to raise taxes on the top tier of income.  A 3% tax increase isn’t what we’re really talking about here.  That would never be enough.  How much is enough?  50% tax rate, 70%, 90%?  They’ve all been tried.  If we did today, what England did, we would have a top income tax rate of 70%.  The median wage would be about $30,000.  Unemployment among the under 25’s would be 40%.  Only 10% would be allowed to go to college.  Health care would be free and mostly unavailable.  The government would become the partial or total owner of all big business in the country.    This was what England looked like in the 1980’s after 30 years of high taxes and the central government running virtually everything.  And the country still came to the edge of bankruptcy more than once.  Emotional arguments like the one above will lead to poor choices.   We think we are being “fair” and can make this type of economic system (redistribution of wealth) work when it has failed everywhere it has been tried.   It leads to people having no motive to excel, and all wealth ending up under government control, when government is not and will never be a good steward of what it manages.  We need to look at where we’re spending our money, not raising taxes.

Hidden Taxes

September 13, 2009

I looked at my phone bill last week and wondered why it gets higher and higher as the months go by.  I scrutinized it further and found the actual service charge hadn’t increased, but the taxes on it had increased.  I added up all the different tax assessments added on top of the service charge.  I was amazed at the total.  Then I figured the percent of these taxes to the original charge and I am paying a whopping 17.85% tax on my phone bill!  Now I’m just a little granny, living in a condo, driving a 10 year old car.  I thought my taxes weren’t supposed to be going up.  Truth is, every time a business tax goes up, I the consumer pay the tax through the increased prices.  What would really be fun is to see what the taxes are for various bills I pay.  How much of my gasoline bill is taxes paid by the oil company.  How much of my electric bill is taxes the utilities have to pay.  How much of my grocery bill is taxes paid by the farmer, the trucking company, and the grocery chain.  And now that I know I’m paying more taxes than I ever realized, where is that money going?  Businesses are subject to audits by the IRS.  Charities are subject to audits by the IRS.  We the people are subject to audits by the IRS.  Why isn’t the government subject to an audit by some agency outside the government?  Thats one of the reforms I would like to see.