Taxoholism

This night upon the Stoa, one of the many voices from the stairs asks me a good question. My son was wondering if taxes are easy to notice or easy to identify.

This is a good question given todays kabuki theater in Washington D.C. Regardless of what they tell us, this "deal" will have "cuts", but not actual "cuts". These will be "reductions in baseline spending". This simply means that instead of increasing spending by 12%, they will only increase spending by 6%. They then book a $2.5 Trillion "savings" and crow about the money they saved. Try that one at home, kids.

Then, the other item in this "compromise" will be the "revenue enhancers" that Democrats live for. They will claim that there are no tax increases contained in the deal, however, there will be plenty of new "revenue". Now, if there are no "tax increases" how can government revenue still go up?

Let us explore the ways. This is by no means exhaustive, in fact, I'm not creative enough to come up with even some of the ways.

First one I can think of is "expiring the Bush Tax Cuts". First, I'm offended that it takes an act of law to hold taxation level. The "Bush Tax Cuts" were simply a reduction in the tax rates. I would think that if you pass a law to reduce taxes, then raising them again should be another law passed by Congress. Simply allowing the "Bush Tax Cut" to sunset is an automatic tax increase on just about anyone. A "revenue enhancement" without passing a tax.

Increasing license fees, tolls, the cost of interacting with a government agency, etc, will likely all go up. Just look at the banks and the ATMs ever since the government tried to "help" protect us from the evil bankers.

Taxes will go up on gas, corporate licensing, small business, big business, and anyone who makes a buck in the country. Since these are not personal taxes, these won't really "count" as tax increases, even though every tax on a business will go straight into the cost of any good or service, so those taxes have all been passed on to the consumer...that means you.

It will not be long before they simply drop all pretense to honoring an earlier commitment to the taxpayer and simply go feasting. Why rob a bank? Because that is where the money is. What does a government do when they are going through monetary withdrawals? They will go to the taxpayer, especially the middle class, because that is where the money is. Remember, any corporate tax is an indirect tax on all of us.

The only ones that are going to win in the current debt debate in Washington are the politicians. They will continue to spend, their piglets will continue to suckle, and the those of us with an ounce of productivity left will be tapped for the revenues needed.

They are Taxoholics, and they can not admit it. We are enabling their behavior by allowing them to retain their seats. Until we remove these people, we will continue to receive the treatment we deserve.

Please think on that last sentence. We ARE to blame for all this. They are just the symptoms. We are the cause. We are also the answer and the cure. WE the PEOPLE have to say "no" and vote them out of office.

Oh yes, they will be creative with what is said and done in Washington this night...and we will all be the poorer for it.

Live well, cheaply.

--Zavost