All taxes are on income; they’re too high, too.
I see often many comments from Tea Party folks, conservatives, Republicans, etc, that the “poor” don’t pay taxes. And of course, from the Liberals and the Left, and the Democrats, etc, there is the cry that the “rich” don’t pay taxes. From the sound of it, there’s no one paying taxes whatsoever, and certainly not enough to cover government expenses as determined by the very math challenged Congress and President of these United States. Surely someone in government must be noticing that all the taxes no one seems to pay amounts to quite a pile of bucks. For to hear either side say it, the poor and the rich pay no taxes, and certainly not their fair share, and they use every loophole and murky provision of the confounded IRS code to do their nefarious bit to get more money out of Washington then they put in, For sure, the IRS manages to round up $2.3 Trillion bucks or so, by sweeping the economy far and wide, and by jot and tittle, too, for every dime it can manage to squeeze out of the populace. It is our legal right to use the law as written, the IRS code as confounded, and cut off the spigot. It’s the great tax game, of course.
Still, Congress and the President will not accede to the reality of the $2.3 Trillion vacuumed up from hither and yon, Miami to Seattle and on to Honolulu, too, and all you’re going to get at current law and economic levels, simply does not cover the cost of the $3.9 Trillion they wish to spend. Or is, oddly, “Mandated spending,” from some unseen and unknown power well outside the hands of the law making powers of the Congress of the United States. Wusses, apparently, in getting back their power to tell the president and the cabinets and the agencies by the score that, well, time to cut the spending, there is no money. Meanwhile, deficits of $1.4 Trillion every year cannot be helpful. It can’t work in the long run. And we’re not going to grow the economy out of this. Liberals and Democrats were absolutely positive that $500 billion dollar deficits under Bush would bankrupt the nation, so what do they think of their own $1.5 Trillion dollar deficits? All of a sudden it seems OK. Hmm, talk about your political flimflam, eh?
There is this truth, of course, that some 40+% of the American population that does not pay income taxes. That is, these people file no 1040. (Why a form should be numbered “1040,” and not say, “Form 1” is beyond me; are there really 1039 forms in line before the dreaded 1040? hmm.) Still, the “poor” do pay taxes on their income, but at different collection points. And these taxes that the “poor” pay are levied on “income” but just given different names. And in this confusion there is the misnomer that the Right, by whatever name, wants the “poor” to pay more taxes, and somehow, ergo, the Rich to pay less. That many a rich Democrat or Democratic Party supporting corporation paid no taxes is sort of skipped over. That every Democrat in office seems hellbent on raising every tax it can find to be raised, and levy new ones on whatever has not been taxed yet seems not to be of important to the media. Not a word about that, only that more taxes will miraculously fall only on the rich. Well, yes, tax a corporation another 5% and watch all the prices go up 5% to cover the new cost of doing business. Who does anyone think is paying corporate taxes? Why, it’s consumers, of course. Much as renters pay property taxes, but it’s just not mentioned in the apartment lease.
That any Right leaning person seeks to legally lower his tax burden, or those of anyone else too, well, then he’s a heartless cad using “Loopholes” to somehow avoid his “fair share.” Yes, well, if the tax code is so bollixed and filled with strange little provisions that no one knows about except for nefarious Righties, while those on the left are pure and innocent of all tax shenanigans because while they’d like to pay more, and their hearts are in the right place, wherever that may be, and just so happen to avoid paying taxes as legally and with all the fine if murky provisions of the tax code just so happen to be found by their crafty tax accountants, well, then, we can see that the meme, the story, the media mush, is well, nonsense.
Yes, the poor pay taxes. Let’s take a romp through the taxes the poor pay. Even those on welfare of any kind, even those on unemployment, they pay taxes. They pay sales taxes, yes? And phone and gas, electric and water, sewer taxes galore. They pay the taxes that are inherent in the price of any item they buy, too. If a food company pays 10% in taxes, well, then, that tax is embedded inside the price of the food. The corporation can have no other source of the money. It doesn’t have some non-tax, non-business, non-product selling source of income. It’s sole source of the tax money is from the price it charges for an item. Raise the taxes, and almost invariably the price of the thing will go up to cover the tax. And oddly, given that taxes are on “profits” of course, after all the expenses have been deducted and accounted for, certainly, then if the tax is not passed along to the consumer, in effect the profits to tax fall. If a company earns 10% in profits, and you tax 10% of that, and now raise it to 15%, well, then somehow either the profits will fall to 5%, or to maintain the profits, the prices will be raised 5%. Oh, perhaps they’ll do it in 1% or 2% intervals, to make sure things don’t go too kerflooey. Of course, most consumers blame the company for the rise in prices. But, no, it’s the government.
The poor pay taxes at about the same rate as the rich, in terms of their income. That is, a rich guy might pay 35% of his income in taxes, but levied on salary and earnings directly, while the poor are nickle’d and dime’d to death in tiny levies here and there, and wind up paying, oh, 35% of their income in taxes. The collection points are different. But to the Federal Behemoth it’s irrelevant whether the tax comes from income directly or from the Federal phone line transfer tax or whatever they want to call it – the money all goes to the same pot. The phone tax is not dedicated to the phone lines, no. It’s dedicated to the general fund, which might be spent any which way. The tax collected on gasoline also seems to disappear into the big pot of cash collected. Indeed, the so-called transportation fund of money set aside from gas taxes for silly things like roads is filled with IOUs from the government which says, well, those IOUs can be redeemed at a moment’s notice from tax revenues to come. Soon. They hope. Eventually all the funds will be filled with IOUs and eventually those IOU holders will ask for real cash, to give to the people, to help them. And the government will either borrow more money, which will be paid back by future tax revenues of course, or it will print more money, which is inflation.
Inflation is the deadliest tax, for it is insidiously hid. And the government decries all knowledge of how it comes to be. For it’s said that inflation is “rising prices” and it is no such thing, or “rising prices causes inflation,” which is even more incorrect. Rising prices is merely the outwardly seen symptoms of the inflation. Sort of like the little bumps and pustules on the skin are the outward sign of the measles virus. Inflation is a ratio between how much money is in an economy and how many goods and services there are to sell and buy. Oh, sure, one can increase the money supply one or two percentage points a year, for that would meet the actual growth of goods and services, and the growth in population. But when the money supply is added by 10% or more, well, then, presto: inflation. And well, the Federal Reserve Board seems to have pushed 10% or more of extra cash into the economy, some say even 25% or 30%. To prime the pumps, it’s said. Though the Fed is demur in acknowledging exactly how much it pumped into the economy to help us. To follow the dictates of Keynes, a warmed over socialist with a clueless grasp of math and a power lust, who said when the economy contracts, inflate the currency. Yes, well, the inflation of today always leads to the contractions of tomorrow, so perhaps inflating today is not a good idea after all.
Still, there’s the taxes. Some could argue that it hovers at the 50% level already. What with city, county, state and federal taxes all fighting for their fair share, and the inflation factored in – yes, you see, if your actual tax combined by every tax levied is 40% of your income, and the inflation rate is pushed to 10%, well, that’s a 50% tax indeed. And all this to help us! All these taxes are given back to us, supposedly in the exact dollar amount we pay into the system. Isn’t that the goal? Every state and city says that their people pay more in taxes to the federal government than they get out of the feds. That’s why they clamor for more federal funding. Yes, well, there is that overhead charge for all the tax monitors and government money monitors, and expense monitors – it all must be kept track of, and directed to the right sources too. Why, it’s said that companies that can’t make a living off selling what they make should be amply helped by government to make sure those jobs are kept. Yes, and industries important to our future are to be well stocked with cash from the government.
Alas, the government gets the cash from someone else. And so we take a measly $500 million and give it to a solar company which can’t make a dime otherwise, which means $500 million is missing from the pockets of people who might have bought what they want, which is rarely solar anything. And so the economy loses $500 million in real spending, so it is given to some politically connected flunky with more a lobby plan than a business plan, and presto, supposedly we’ve helped the economy with jobs! Hell, the jobs are unproductive, and at most merely replace the real productive jobs of people employed making and doing what the people out the $500 million would have spent it on.
The better mousetrap is not built. No one is buying the goods, and so the warehouses full of stuff no one wants are sold for scrap, and the people can’t buy what they really want, which would have led to the same number of jobs – just different ones. Ones the government didn’t “create” by helping a failing company stay afloat a few more months, until requiring the next cash infusion, of course. And what people want to buy is their business, not the government’s. Still, the government is compelling us to keep General Motors alive, and not give business to say, KIA. It is compelling us to fund sports stadiums, rather than new air conditioners. And to give all manner of incentives, as they are called, for some company to move from where it is to somewhere else. One state’s job gains is another state’s job loss if all the company did is move from Kentucky to Tennessee. Hell, a company on the border can move back and forth for years getting “incentives” from both states to keep up the game. And the government is compelling us to support farmers high on the hog with high prices, so that we can tax other people to give some other people money for food stamps since they can’t afford the high prices promoted by the government.
Truly, farm supports boggle my mind. We are paying large companies and big farmers billions of dollars a year to either not grow food, or to warehouse bazillions of pounds of food, or to at least get a “fair” price as determined by the Department of Agriculture’s “fair price” committee of bureaucrats who haven’t been to the farm, ranch or stockyards in decades, except to fine farmers who produce too much, or in the wrong place, or somehow otherwise run afoul of the many DoA (dead on arrival, hmm, why do so many gov’t acronyms have spooky connotations?) mandates, programs, provisions, rules, regulations, and reporting and accounting requirements, for the good of the people, of course. And so for our good we get higher food prices and rich farmers and a dash of food stamps to pay for the peanut butter that is by law limited by supply to keep the price high.
Charming work if one can get it; and it must be, since government is the fastest growing employment sector right now. And there’s plenty of talent to be hired, since companies making stuff are taxed and inflated into insolvency directly or by destroying their consumer base. After all, if you tax people more, they’ll have less to spend, and ergo, some company’s sales, profits and taxes will fall. Ah, but let’s keep the price of peanuts high, to help a few over the many. So, alas, no new peanut farmers allowed, don’t even apply. There’s apparently a very well scientifically determined number of peanuts to be grown by just the right amount of peanut farmers in just the right counties in the Peanut Growing Allocation Area, so that both the consumer and the peanut farmer are well within governmental guidelines for the prosperity of the nation. Yah, sure, right.
Still, yes, taxes, paid by everyone, on their income, however they make it. And there’s not enough income to give the government what it says it needs to help us. And so the government borrows money it can only pay back through more taxes tomorrow. Taxes on income, taxes collected at the salary or the national sales tax envisioned by some, (and don’t think it will replace anything, it will be added to the burden, and the burden not rearranged,) now at near 50% for everyone, and it’s still not enough for the good spenders of the government who aim to help us with our own money. And of course, nearly 100% of the people almost convinced that everyone else does not pay their fair share of taxes and so are at loggerheads on which taxes should be raised on who and who shall be declared the evil meanie not paying their fair share – for the government has set citizen against citizen by taking all these taxes and spending them as government wishes, and not at all as any particular person would have spent his $20 not taken by the government in taxes. So, instead of all cooperating by telling the government “Enough with the taxes. Enough with the spending. Cut the spending, cut the taxes. Cut the trying to help us nonsense and pave the roads already” we are all sort of arguing with each other as to who pays taxes. Well, we all do, on income, even. Only it’s collected at different points, coagulated in the glutinous hands of government and given by Congresscritters to their favorite people for the good of us all. Yah.
And this growing disconnect between the people and the government has always led to big changes. And the first change that might come about in this nation, besides the bankruptcy and the lack of new lenders for the endless borrowing, and the inability to double the tax rates to rid us of the borrowed money deficits, is the destruction of both the Democratic and the Republican Parties. Both have proven themselves bereft of any “hope and change” whatsoever. They are both for more of the same. They are merely arguing over who gets their name on the plaque in front of the new government office building to house more bureaucrats to hinder the prosperity of the people. It probably won’t lead to violent revolution like in Syria or Libya, or even as in France or Greece whenever the government runs out of money. No, just the two parties gone. We are watching their last hurrahs. The Democrats have proven they can’t even pass a budget, and they have no ideas other than to not change a thing, and the Republicans proved they were the same, and now want to get into office and not change a blessed thing.
Let’s hope we all survive the coming tax and income and bankruptcy dilemma.
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