Yesterday we waxed on the topic of “compromise” and it’s meaning in this latest go around in Washington focused on the budget discussions and Americas growing addiction to foreign funding of it’s bad habits. So today, as promised we will spend some time looking at the revenue side of the equation and its associated logic as it relates to the controversy at hand today.
As let me ask you the question, what if every family in the Untied States paid at least some Federal Tax? What, you don’t think this is the case already? Well if you go back a few posts you will find that we wained about the fact only about half of the families in the US pay Federal taxes! Now for the balance of the discussions we will be waxing about Federal Taxes and not state or local as this is where the national debt sits and most state and local budgets are mandated to be balanced anyway.
So back to the topic, let me also ask you does Bill Gates the person receive any more protection then Andy the Homeless Hobo? No in fact one could argue that supporting Andy costs more, so why should Bill pay for Andy? Well ok this might be a game of absolutes however it makes the point that no one should get off scott free as if this where the case one can bet dollars to donuts peoples actions would change, which is what we are in need of today.
This is where in my humble opinion we require a massive over haul of our tax code as it’s not designed to be supportive of global enterprises nor that of an Internet based economy. So more taxes, not really however correct taxes you bet as we should all “feel” a personal obligation to contribute to “our” collective (well) being. However when there is an imbalance in one side of the system as there is today, the other will over commit while attempting to compensate and this is where we sit today.
As when we look at the taxable landscape today, with the Internet and other tools available. The wealthy (rich as the left likes to say) have options so creating a negative environment for those folks means again more dollars fleeing our shores and the burden is pushed down to the middle class. Also should say what is left of the middle class as it’s going the way of the Berlin Wall as it cannot sustain the ever increasing financial pressures placed upon it by society.
With this all being said, we need to embrace the wealthy to keep dollars on shore which in turn will spur job creation, second pressure must removed from what remains of the middle class allowing it to heal (as most of these are the boomers heading for retirement). Finally, those who pay no tax must pay some tax and as before you doubt this, simply sit outside of most grocery stores on government check day to watch all the soda being dumped out into the parking lot so folks who pay no tax can return the cans to buy their booze and cigarettes…