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Funny Thing About Recessions
29 January 2008First thing Washington wants to do is give us our money back. If this is such great advice in a recession, think about how good advice it would be when we are not in a recession!
However they are arguing on how to give the money back, seems some Americans would not get a dime back. These Americans of course would be the ones who don’t pay taxes, they receive benefits of what the tax dollars pay for, such as roads and police and fire departments but they don’t pay income tax.
Some democrats claim this is not fair. All Americans should get a tax rebate, even if they didn’t “bate” to begin with. Fuzzy logic if you ask me. And the American’s who make above say 150K$ as a married couple get nothing, those that pay the most get nothing. How progressive!
This recession is Government made. The very medicine they are using to cure this recession is the virus that created it. Low Prime Rate for an overly extended time. So much low cost money was floating out there, people just had to come up with stupid and risky ideas to use it…..subprime comes to mind.
Washington’s cure is to create more money and put it in the system. A “rebate” is the ultimate low cost money, it is free, from a government point of view. Not free to us, we worked for that money.
Just about every economist out there says, it will come too late to matter. And that it is “feel good” politics, thats ok, it’ll feel real good in my wallet.
Were not Hillary and Obama railing against “George W Bush’s risky tax cuts”? Just a few month s ago? I kept hearing over and over again, “risky tax cuts”. Changed my morning radio station from NPR because I couldn’t take listen to “risky tax cuts”. (In my defense as I have stated before on these pages, I live on a mountain side, my radio choices are limited.)
The only people tax cuts are risky to are in the Government.
When the country hurts and people hurt, we hear about temporary tax cuts or rebates for the middle class, we never hear about Government cutting back and taking less of our wealth. Government never makes do with less. I make do with less when I get $750 oil bills, the Government merely raises my taxes to pay for their oil bill.
There really is not a shortage of money to lend, but there is a shortage of people who will lend the money, everybody is kinda risk adverse right now. The real interesting thing about this sub-prime mess is companies and investors are not sure who is holding the bag and how much is in the bag. I read that only about 1/2 of the mess has been disclosed, leaving at least another $100B as in billion yet to be expensed.
Hillary says her tax rebate/cut plan will give money back to the people who need it the most, the middle class and will create jobs!
Obama has a similar message, except he throws Senior Citizens in there with “no taxes on Seniors making under $50,000 a year”.
And both raise the populist argument of Wall Street / Business against the middle class.
Both want to give us our money back and raise taxes on the “wealthiest” Americans and close the Corporate Loop Tax Holes. Well there are no corporate tax loop holes because all taxes are borne in higher costs by the end consumer, that would be you and me. There is no such thing as taxation on businesses that ends on businesses, because it all gets passed on in higher costs.
And regards the “wealthiest” Americans, in Connecticut that would mean you and me again. Hillary herself said it in a debate. Her constituents live in a high cost area of the country and making a $100,000 just does not go that far in the Northeast. Agreed.
All our wealth is derived from commerce or doing business. All taxes are paid for from wealth derived from doing business. Most of us take home a paycheck and pay our taxes from a business and buy goods and services from our neighbors with what is left over and incidentally pay for the businesses’ and service providers’ taxes also.
The plumber has taxes too and that driver of your home heating oil truck pays taxes from his paycheck, just think how much in embedded taxes you pay in dollars that you have already paid taxes on!
All told our real taxation rate is somewhere around 40% in Connecticut. You work for the Government over 4 times more than you work for food.
You work for the Government more than you pay for Health Care, now there is a health care plan! If the Government didn’t take as much, maybe we could afford Health Care.
When the Government takes so much of our wealth, we have to look to them for help.
You also work for the Government more than housing, in fact Government is the single most expensive item in your budget. And you are not even budgeting for it!
Who is working for who here!
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