Why is POLITICS the number one item in the Blog list? I'm glad you ask.
If there is one thing I've learned in my life everything that any government group does affects each and everyone of us within that group.
I. POLITICS
Lets Begin With Taxes
1.Ad-valorem Taxes
The most important thing to remember about governments (at any level) is they do not earn the money they spend. It’s OUR money! It is beyond comprehension to understand how politicians can't seem to spend our money as carefully as they spend their own. Taxes, fees, dues, tolls, tariffs, fines, etc. seem to be the most popular way to raise revenue to fund the various services that governments must have available to keep their citizens safe and comfortable so their work life will produce, you guessed it, more taxes. What a vicious cycle in which we all live. (Perhaps some awareness in collection and dispersing of taxes may be needed.)
Yes! I do understand funding for our governments are necessary. Even temporary short term funding, for major projects, is also required from time to time. However it is beyond the ability for anyone to fathom why we keep setting up tax structures in new communities that have proven to be inadequate, since their very beginning throughout history, in our existing towns, cities and states. If all the citizens are to realize a benefit from a government service than all of those citizens should be in line to pay for that service. In that way the cost is spread over a much larger base and cost much less per person. I know! I know! "But I'm poor, I can't afford to pay". Actually those folks are paying more taxes then the rest of us. Oh yes they are! Generally the ad-valorem taxes paid by the landlords of the rentals of non property owners are paid at the full rate (non homestead exemption calculation) due to higher rental fees. (I do realize not all states have homestead exemption clauses in their constitutions.) So, what is the answer? Commerce! It works every time its tried.
One may ask, what does economic commerce have to do with funding local, state or federal governments? Solid examples of this being the case are any state without a state income tax (as well as some without state sales or personal property taxes). Many studies have been done by a number of "think tanks" that clearly show this to be the model that works best. It’s been said that there are two "oldest professions" through out history. We all know the one listed as number one, well the other I believe has always been the tax collector and I'm not so sure now which one came first. Think about it!
What are some of the advantages of an added (or new state sales tax where applicable) 2.5% sales tax surcharge, at the retail level only, (never to exceed more than 3%) to be dedicated to those items formally covered by ad-valorem taxes (including school taxes for public school educationand administration). What makes this so palatable is it will include all persons participating in the world of business and commerce (which means all persons in all communities). If one buys an eligible item than the tax is levied. Thus taking the burden of paying for a communities needs off of a single group of citizens (property owners) and place that overload on all members (and visitors) of every region, locality and neighborhood. Yes! This will include all persons now currently getting a "free ride" such as tourist, foreign exchange persons, transients, bums, illegal aliens, etc.
The best side effect this has overall will be the unconscionable confiscation of real estate (homes) due to the non payment of property taxes in a number of local communities through out America. Some local property taxes exceed more than $20,000 annually. Which means a retirees' home will no longer be in jeopardy of being seized leaving that family homeless and unable to cope with life. This is not a fairy tale it is actually happening in the already heavily taxed regions in many parts of our country. One other benefit will be to reduce government workers in both the tax collectors' and property appraisers’ offices, once again having the desired effect of reducing the cost of government. Plus, plus, plus.
2. Federal Income Taxes
What was originally designed to cover only about 150 families in this country, who were extremely wealthy, has now become this countries biggest nightmare. Not just the fact it no longer resembles the true intent of the originator but because it now is being used, in part, as a political weapon. One only needs to read the books "The Fair Tax Plan" (paperback has 5,000 more words than the hardcover) and "The Fair Tax Plan: Answering the Critics" to clearly understand how commerce and business once again is the answer to funding the necessary requirements of government even at the federal level.
The most glaring point these books render is that we are already paying more than the 23% sales tax being ask for under The Fair Tax Plan but in the form of other taxes and fees folded into the cost of all consumer items at today’s market price. Which means prices would not go up by 23% but would stay the same or most likely go down. In addition we would no longer pay federal income tax, social security tax, Medicare tax plus each household would receive a prebate check each month for the taxes paid purchasing the necessities of life as determined and updated according to the size of ones family.
In addition to all of this the corporate tax rate would be zeroed out as well which would most likely reduce prices across the board by 35% (the current corporate rate) on all consumer items. At that point true competition would be in full swing at all major retail markets for new items. Which means The Fair Tax is only assessed on new items. All used (previously owned) items are excluded such as homes, cars, appliances, furniture, tools, parts, clothing, etc.. Once taxed an item is never taxed again no matter how many times it is resold. As anyone can see the economywould sail to new heights. This would most likely widen the used goods markets even further than ever before including more jobs, activate idle real estate holdings, increase state sales tax revenue and perhaps even reducing landfill deposits by a small percentage. Its all good.
Yeah! Yeah! I know! It sounds to good to be true, but guess what it is all built in to the legislation now before the congress. Simply said it is true and we as voters need to keep bending the ears of our representatives and senators to get this tax overhaul bill to the floor for a straight up and down vote.
3. How Tax Cuts Get Paid For
One thing all liberals do best is go back to their same old "play book" each time a "tax cut" begins to make it's way through congress. "How are we going to pay for it?" is always the first question ask by the liberal leadership in both houses of congress. Never mind they know the answer in advance of their query. According to the main stream media tax cuts only create a "trickle down effect” in our economy. Give me a break! Only a fool could confuse the 18 years of economic progress, including more than 22 million jobs created, which were directly tied to the tax cuts of the 1980’s with "giving tax breaks to the rich”. Those tax cuts, as well as all the others, are felt "across the board”. As confirmation revenues to the Treasury Department almost doubled during the first year alone.
Demonstrating all too often when the government moves out of the way the private sector will grow the economy which in turn attracts investors both domestically as well as globally. This places fresh capital in the hands of companies who are looking to expand their markets, hire new people, develop new lines and/or services or to just simply expand the business. This concept has worked every time it has been tried.
Another great example was toward the waning portion of President Clinton’s second term when he signed a Republican sponsored tax cut bill ($108 billion) which featured a significant reduction in capital gain taxes (to 15%). Within 5 months the investment dollars poured in from investor’s world wide and nearly doubled the stock market averages. By the way it was this very tax cut that triggered the claim by President Clinton the budget was now balanced. Actually I believe it would have done just that had not the congress spent all that Extra Money in out-of-control earmark legislation. An oversight watchdog on spending is clearly needed to regulate congress (a line item veto or better yet no add-on's to any bill). One thing is certain the "checks and balances" set-up by our founders do not work as well as needed.
Many other instances of tax reform have been chronicled such as Ireland reducing their corporate tax rate from 30% to 12% and thus began an economic boom before unknown in that countries history.
Many other instances of tax reform have been chronicled such as Ireland reducing their corporate tax rate from 30% to 12% and thus began an economic boom before unknown in that countries history.
President Ronald Reagan, when ask what did he expect from his proposed tax cuts, replied "A rising tide lifts all boats”.
The one thing that the founders of this great country understood from the outset was to ensure the states were to be independent from the dictates of the federal government. Thus the Tenth Amendment to our Constitution placing each state in charge of their own destiny. Perhaps another look needs to be given to that aspect. We also need to be very careful on how our legislators go about spending our money and than coming back for more and more changing our destiny from the greatest country in the free world to a predetermined society collasped like so many others before our time in history. "LONG LIVE THE TEA PARTY"!
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