Get ready for increased taxes
I’ve noted any number of times that government taxes comprise 14% of the national income and government spending is at 25% of the national income. That’s as high as its been since WWII I believe.
The point, of course is there are three obvious choices here – cut spending to the income level (and beyond, really, if you plan on paying off debt) or increase taxes to the spending level (and beyond, again, if you plan on paying off the debt) or a combination of both.
Watching this current administration, it appears option two is in the works. Lots of lip service about “unsustainable” spending, etc., but the only movement I’ve seen is legislation that increases that. And, also, plans to increase taxes.
Cap-and-trade, and now “Son of Cap-and-Trade” being sponsored by Senators Lindsey Graham and John Kerry significantly raises taxes on utilities (which means everything will cost more for consumers).
Even the FCC is getting in the act, proposing to helpfully tax the internet – something all governments, state and local, have wanted to do for some time. Presently 18 states have laws taxing sales on the ‘net. The feds want to make it 50 (or 57 in Obama’s America) plus a little for Uncle Sugar. The purported reason for such a tax is to “expand internet access”. As Kelly Cobb wonders, how in the world do raising taxes and thus the cost of access help expand access. In answer I offer the one word coda of this administration: redistribution.
The point of this post is to raise awareness that we are too the place where it is critical that the two numbers I’ve cited at the beginning of the post begin to move toward each other, not further away. It appears to me that the decision has been made by this administration to move the smaller number toward the larger number via taxation. In other words, your priorities for your income will be secondary to their desire to cover for their inept and inefficient profligacy. And the profligacy has been committed by both parties.
It is far past time for these people who’ve committed us to this disastrous path to have their priorities reordered. It is high time that their first priority become cuts in spending to bring that in line with their income. Until and unless they begin that onerous and necessary job, nothing will change. The “crisis” they’ve created will remain. I don’t care who did it, what was “inherited” or why we’re in this shape. That’s history. Now is the time to do something about it before it’s too freakin’ late. And taxing everything that moves isn’t the solution I’m talking about.
This is one of the major reasons the Tea Parties exist, for heaven sake – and any politician who isn’t yet figuring this out deserves to join the unemployment line in November. Hopefully the anger that is driving the protests won’t abate before November (or after November for that matter) and put people in Congress (and later the White House) who understand and act on the new priority.
Until then, hold on to your wallet, because the taxes are coming and they’re going to be coming hard.
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