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All You Have To Do Is Do Nothing

July 14, 2011 by Leave a Comment

Senate leader, Senator Mitch McConnell said yesterday his first choice was to reach a good compromise with Obama. He said that if people do not get their Social Security checks and military serving overseas don’t get paid that Republicans will likely get the blame.

McConnell looks like the statesman on this one. The Democrats sound somewhat silly by insisting that taxes have to be raised (though they could be right.)

People, all of you that want your taxes raised, take one step forward.

Of course spending cuts will cost someone money, so what’s the difference between a cut and a tax increase?

It seems like a short term deal for just a few months while Congress reaches an agreement would work. But Obama said no to that.

I saw an ad on the news last night that said to not cut the social security and medicare benefits we (retirees) have earned. They have a point on social security (solvent with a few tweaks) but not on medicare (not anywhere near solvent). The ad finished with retirees reminding Congress that there “are 50 million of us.” They have a really good point on that one.

Any politician who stops the name-calling and works to try to make a deal is going to look good. There is a lot of room to cut spending, especially as Congress is looking at cuts over 10 years. With that timeline you could phase in cuts for almost anything.

Of course if what you really want are cuts, then don’t raise the debt ceiling. All you have to do is do nothing.

Filed Under: Government, Social Security, Spending Cuts, Taxes ·

Government Services

February 21, 2011 by Leave a Comment

I sometimes hear, “Voters want everything they can get without paying for any of it.” Certainly it seems that many citizens vote that way.

But not every voter wants everything they can get without paying for it.

I want well maintained roads so raise the gasoline tax.
I don’t want the age of retirement raised so increase FICA 1%.
I want every wage earner to at least pay some income tax.

If you want savings, end the two unnecessary wars we are fighting.
Cut services the federal government provides that should be done by the states.
Require those receiving welfare or unemployment checks to volunteer in their communities.

If you want Americans to save, quit taxing investments, at least on the first $5,000 of interest.
If you want people to work hard, tax consumption and not productivity.
If you want the federal government to balance its budget, elect Romney.

Filed Under: Government, Spending Cuts, Taxes, Voting · Tagged With:

The Pressure of Unnecessary Taxation

February 15, 2011 by 1 Comment

A presidential quote as we near Presidents Day.

The Federal Government was beginning to be embarrassed by large surpluses. Although President Arthur tried to reduce taxes, Congress was not cooperative. It seems like nothing much has changed, government is in love with taxes (even when there is a surplus) as much as it also loves spending.

It will be remembered that I urged upon the attention of Congress at its last session the importance of relieving the industry and enterprise of the country from the pressure of unnecessary taxation.
It is one of the tritest maxims of political economy that all taxes are burdensome, however wisely and prudently imposed. And though there have always been among our people wide differences of sentiment as to the best methods of raising the national revenues, and, indeed, as to the principles upon which taxation should be based, there has been substantial accord in the doctrine that only such taxes ought to be levied as are necessary for a wise and economical administration of the government. ~ Chester A. Arthur, Second State of the Union Address (1882)

What a grand day it will be when taxes are “levied only as are necessary for a wise and economical administration of the government.”

Filed Under: Government, Taxes ·

$100 Billion Just Does Not Cut It

January 16, 2011 by Leave a Comment

U.S. debt just passed $14 trillion. Soon the debt limit will have to be raised. We are told that Republicans are moving to make good on their promise to cut $100 billion from domestic spending this year. But a $100 billion spending cut from a trillion dollar yearly deficit just doesn’t cut it. I hope we see much greater cuts and possibly some tax increases before it is agreed to raise the debt ceiling.

The advantage of a large budget is that it gives one more areas to make adjustments.

What to cut? Start by giving each department (and/or agency) of the federal government a certain less percentage of money in their budget and where possible let the department decide where the cuts will be made. The percentage can be different for each agency.

As for tax increases, Congress could repeal in full or in part many of the myriad subsidies that it hands out. Then tax deductions could be curtailed. Income tax rates could be adjusted so that almost everybody pays some tax.

Government, this is how it is done. Now get to work.

Filed Under: Government, Spending Cuts, Taxes ·

Portugal Raises Taxes to Mollify Market

May 30, 2010 by Leave a Comment

After Britain, Italy, and Spain cut spending, Portugal would not be left out. Portugal’s legislature is planning a June 2nd vote to:

  • Raise income taxes up to 1.5%
  • Raise the Value Added Tax by 1% across all categories
  • Tax companies with more than 2 million euro in profits an extra 2.5%
  • Cut top government employees pay by 5%

This package is skewed to raising taxes rather than spending cuts. It is designed to mollify the market. When the United States finally joins the party we will see both spending cuts and tax increases. But don’t expect any real action soon. It will take an extraordinary emergency to get Washington to act.

Filed Under: Deficit, Taxes ·

A Journalist Tax

March 3, 2010 by Leave a Comment

Time magazine, in an article entitled U.S. Deficit: Higher Taxes Needed to Cut Rising Debt wrote that the Obama administration is setting the stage for higher taxes. Further, Time said that the only other alternate to higher taxes is more quantitative easing.

Like me, you can easily spot another alternative that is missing — spending cuts. Who writes this stuff at Time? Politicians?

The article further suggests that the top rate could be raised from 35% to 45%. Haven’t these people learned yet that wealth comes from productivity. Hence you do not tax productivity, you tax consumption.

If Time really wants to raise taxes how about the Journalist Tax? That’s the tax levied against every writer that advocates raising taxes without mentioning spending cuts.

Filed Under: Deficit, Taxes · Tagged With:

The Income Tax Blues

February 4, 2010 by Leave a Comment

I just finished my income tax returns. It is quite sad. A large part of my Federal income is taxed at the 25% level. I hadn’t noticed that before because I used a tax preparation program that masks these sort of horrible details.

This year I dived in and used the online filing at irs.gov and utah.gov. When you grapple with the raw forms you discover just how obscene the Federal government has become. It is discouraging to see all those earnings sucked into the great black hole of government. What do we all get for our money? Trillions in debt. It is enough to send me screaming back to my native England.

Except that they are in even worse shape.

Filed Under: Deficit, Government, Taxes ·