A challenge for the GOP

WARNING!  Back yourself into a corner, sit down, and hold on to your wallets.  The politicians are putting together their budgets. 

The Republican Party has for years called for cutting, or at least not raising, taxes.  It's the glue that holds that party together.  Every two years they run for re-election proudly proclaiming that they didn't raise taxes on their watch.  

They are equally adamant about their opposition to "re-distribution", the policy of taking money from one class and giving it to another.  And the Democratic Party just smiles and lets them get away with it, as they are silent partners in this sham.

Sham?  What ever do you mean, Lowandslow?

It's all about the definition of "tax".  To my way of thinking, taking money from my pocket and putting it in the government's pocket is a "tax".  But what about all those "fees" and licenses we're required to pay?  Whenever the pols need a few more $$$ they just raise "fees", never "taxes".  What's the difference between a "tax" and a "fee"?

Example:  Years ago I had a nursery license (landscape, not the juvenile holding facility kind).  It originally cost me $10 a year.  Then it went to $30 a year, then $90, and when it got to $300 (?) I decided it wasn't worth it and let it lapse.

I'm sure the same can be said for licenses for electricians, plumbers, beauticians, exterminators, etc.  Likewise the cost to get your yearly auto registration and safety inspection has greatly outpaced inflation.  

Wanna go to a state or national park?  It'll cost you more than it did a few years ago.  The list of things we have to pay for that falls outside the traditional definition of a "tax" is long.  It may seem like small stuff, but it adds up.

Oh...and toll roads!  In my state, because the politicians won't dare raise the gasoline tax, which is used to build and maintain public roads, they've come up with a new scheme:  set up new "tollway authorities" and let them build the roads and charge tolls.  Or worse, let them take a road we've already paid to build and turn it into a toll road.  I spend well over $1000 a year on tolls.  Now we're talking BILLIONS!  But at least they didn't raise my taxes.  Whew!

And isn't a "subsidy" really just a "re-distribution"?  When taxpayer money is given as a subsidy to the oil industry, Big Pharma, Big Ag, Wall Street, etc, by my definition that's a "re-distribution".  I once had that money, then government got it and gave it to someone else.  Someone with political connections no doubt.  Same with tax loopholes.  Added up, these total HUNDREDS OF BILLIONS OF DOLLARS!  But it's OK...sleep well...they aren't "taxes".

Here's my challenge for our politicians, particularly the Republicans as they seem to hold all the cards these days:  Declare all things that require us to pay our money to the government a "tax".  No more "fees" or other obfuscated terminology.  

Declare all things that transfer our money to someone else a "re-distribution".  And when one group can avoid paying taxes (formerly known as a loophole), requiring another group to pick up the slack, that should also be declared a "re-distribution".

Now let's see 'em backtrack, declaring tax increases to not be so bad after all.  But...but...uhh...

Here's my point:  Don't bullshit us.  Admit the government needs money to conduct business on our behalf.  But instead of lamenting HOW MUCH we're paying in taxes, concentrate on HOW IT'S BEING SPENT.  Right now we're not getting our money's worth.  

Waaaaaay too much taxpayer money is being wasted on crap stuff that is of minimal if any value, and waaaaaay too much taxpayer money is being handed out as political largess.  The bureaucrats and political insiders are living very well at the expense of the rest of us.

Politicians need to learn that The People won't mind paying taxes IF THEY FELT THEIR MONEY WAS BEING WISELY SPENT.  Right now we're NOT feeling the love.

S

"Hi....I'm from the government and I'm here to help", or "Bend over and feel the love"

Imagine for a minute you decided you wanted a new computer, but you didn't want to go into debt for it.  Then you heard of a merchant who would sell you one on an old-fashioned layaway plan....you paid monthly, and when you'd paid in full, you could go and pick up your purchase.  It was sale priced, so you jumped at it.

This was the prize you were promised.

After working hard day after day, looking at the picture of your new computer stuck to your refrigerator door with a little magnet, waiting for the day when you could get your hands on it, you go to the store to claim your hard earned prize, and this is what they handed you....

Then they tell you they miscalculated....they couldn't deliver on that new computer after all.  Their projections were way off, they were operating in the red, costs were up, revenues were down, times were tough.  Never mind what they promised, but this was all you were going to get.  Sorry.

This is essentially what is threatening to happen with Social Security.  Most Republicans and more than a few Democrats have decided that "entitlements" must be cut if we're ever to have a balanced budget, or even a manageable deficit.  It seems the politicians have over-promised.  *shock!*

Only one little problem....people PAID into Social Security all their working lives in order to have that little pot of money waiting for them when they retired.  It's THEIR money!  Anything they could put aside over and above Social Security was great, but at the very least they had their Social Security waiting for them.   Now the gubment is considering taking at least some of it away.

"Entitlement" means they've already paid for it and they are entitled to receive it.  IMO, at this point it's a right, not a privilege.

This might be a bit more palatable if they had scrapped the entire tax code and put in a new one that treated everyone equally, but they didn't.  There are still subsidies and loopholes sprinkled throughout the old code, robbing the gubment of revenues it needs to keep above water.  And now they want to change the Social Security rules in the middle of the game to make up for their wild promises elsewhere.

Loopholes and subsidies are not paid for in advance.  They are pure and simple freebies to the recipients.  They are not entitled to them.

So people who are "entitled" to something are (maybe) not going to get it, while people who are NOT entitled to something can still count on getting theirs.

I could not in my wildest dream imagine a more dishonorable idea.  Considering it's coming from Congress I guess I shouldn't be surprised.

Oh....and Happy Tax Day.  :)

S

I should do this more often

WOW!  What a great birthday so far!  I took the dog out this morning at oh-dark-thirty to find the temperature at 63 degrees.  Woohoo!  Then I came back in to a big plate of brownies K made for me, complete with "Happy B-Day" written across it.  I would show it to you, but I've already eaten "Happ..".  Yes, I had a brownie for breakfast.  Sue me. ;)

Today is supposedly the first day of my semi-retirement, but all I see ahead of me is work.  Besides the client I met with last Saturday, another one of our homeowners from 16 years ago has sold their home and wants us to build them another.  I've been helping them look for some property, and yesterday they made an offer on one and it was accepted.  Looks like the next step is to visit the architect.  Then another one of our homeowners, this one from 14 years ago, wants to meet today to discuss building them a new home, too.  Looks like I'll have to postpone "sleeping in" for a while longer.

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Looks like this election will be the most expensive ever....to the tune of $2 BILLION dollars spent, which means at least that much was donated to the politicians all combined, right?

OK, let's think this through:  We have a TRILLION dollar deficit and our Congress / President are beating the bushes looking for ways to save a buck.  They've come up with the noble idea of closing tax loopholes and ending expensive subsidies to selected companies and industries, ideas which have been (on the surface) universally praised.  

At the same time rich individuals and large corporations and their PAC's have donated the vast bulk of that $2,000,000,000 the politicians have in their re-election war chests.  So we're to believe they're giving generously to politicians to show their support for them for closing THEIR tax loopholes and ending THEIR subsidies?

Why yes, I would like to buy a time share in a high-rise ocean-view condo in Nebraska, complete with a private white sandy beach and palm trees.  Who should I make the check payable to?

S

I want THEIR tax guy....

Several news sources reported over the weekend that the most valuable, most profitable company in the world, Apple, is a tax-paying lightweight.  Or to put it another way, Apple is a tax-avoiding heavyweight.  


Last year Apple had profits of $34.2B dollars, yet paid only $3.3B in taxes.  That's a rate of just 9.8%, which is 1/3 less than the average corporate tax paid by other Fortune 500 companies.  By comparison, Walmart paid a rate of over 24% in corporate income tax.


And it's all perfectly legal.  How'd they do it?  By claiming that most of their profits were made by Apple entities located in foreign, low-tax places such as Ireland, the Netherlands, and various post office boxes in the Caribbean.  US taxes are paid based on where "value is created".  If you were making cars or appliances or almost any other tangible product, the place where the factory is located would be where "value is created" and that's where taxes would be paid.  But with intangibles like patent royalties and intellectual property that can be pretty much anywhere they want it to be.  That's why 70% of Apple's profits are made *wink* outside the US.


I don't blame Apple or any other company who takes advantage of this gaping tax loophole.   I blame our congress who created it and does absolutely nothing to fix it.  But with a TRILLION dollar deficit why wouldn't they at least try, you ask? 

Simple....campaign contributions, aka legal bribes.  "Big Bidness" likes our tax system juuuuuust the way it is, thank you very much....subsidies, loopholes and all.  And they make lots of "contributions" to make sure it stays that way.  (And BTW...they're "legal" bribes only because those receiving the bribes are the same ones who get to define "legal".  Pretty sweet, huh?)

S

Taxes....the good, the bad, and the ugly

This week it's all about taxes.  First the good:  April 17th is Tax Freedom Day.  The average American has essentially paid all the money he's earned so far this year to Uncle Sam to satisfy his tax bill.  After tomorrow he'll be working to put money in his pocket.  YEA!!


Now the bad:  Your taxes are due today.  Pay up.  BOO!!


Finally, the ugly:  IMO most Americans wouldn't mind paying their taxes IF we felt our government was being run efficiently and fairly.  I've heard it said that most Europeans don't mind paying much higher taxes than we do because they feel like their government is run efficiently (?) and they're getting something for their money.  A college education is inexpensive or even free for most, child care is free or heavily subsidized, unemployment and job re-training is much more generous, etc.  We won't even go into health care.  


Yes, those things cost a lot of money, and Europeans are taxed through the nose to pay for it (except the Italians and Greeks apparently), but at least they get something for their tax dollars...er...euros.  And yes, since the end of WWII NATO (read: the USA) has covered much of the cost of their national security, leaving them more money for their social programs, but still....  (European readers, if this is not true please feel free to correct me.)  


By contrast, here in the US we have a system that taxes one group and generally gives the benefits to another group, fomenting class conflict.  For example, I had to pay 100% of the cost to have braces on my kid's teeth.  I didn't qualify for any type of government help.  (Here in Texas kids on Medicaid can get them for free.)   College....100% on me.  We made too much to qualify for any grants.  Child care....no government assistance for us.  I know some will say, "But Scott, you could afford to pay for those things for yourself."  I disagree.  It was a HUGE struggle for us at the time.  We had to go without a lot, but my tax bill still came due on April 15th.  Imagine paying for car insurance, then having an accident and being told you didn't qualify for a repair because you made too much money.  Same principle.  You can imagine how such treatment might lead to "tax resentment".


Yes, of course, the rich pay LOTS in taxes, but they also get LOTS of special treatment / tax breaks, etc. And corporations....somebody 'splain to me again why we give BILLIONS of dollars in subsidies to highly profitable companies like ExxonMobil, ChevronTexaco, ConAgra, and others?


Here's my point:  I'm not necessarily suggesting we should adopt Europe's social programs.  We can't afford what we have now, I contend because our government is run so inefficiently it's criminal.  What I am suggesting is that we need to spread the payment of taxes and the benefits they bring more evenly.


OK, rip me. 


S