Thursday, May 3, 2007

Government Tax Increases

Folks, I never paid city income taxes until I moved to the Ohio. It seems that requests for additional taxation is on every ballot. Don’t miss a vote or you will pay. I already pay 2% of my gross (no deductions) to the city. Now the school system wants to add 1% more to the tax. Of course they like to use the term “levy” thinking it doesn’t sound like tax. A tax is a tax no matter how you dress it up.

A tax increase is a paradigm. We are sold the idea that tax increases will increase our standard of living. I’m not sure if that argument holds water. For example, if the government gets 30% of my income and I get a raise of 5% then the government gets a raise. 30% of my raise goes to the government. Do they want more?

Let’s work the numbers further. Johnny makes $50,000 per year. Gotham City gets 2% of that $50,000 or $1,000. Johnny gets a 5% raise. Johnny now makes $52,500 and Gotham City gets $1,050. Gotham City got a raise because Johnny got a raise. If Johnny’s raise met the cost of living then Gotham City met the cost of living. Why would Gotham City need another 1% if their expenses went up the same percentage as Johnny’s raise? If Johnny’s raise didn’t meet the increased costs, then either Gotham City can’t manage their money or their population doesn’t get appropriate pay. It may be time to change government.

But it is a different department wanting the raise. What happened that they need the raise? I can use the same argument. They may argue that their other income is property taxes. Is property value truly going up? If so, then the government is doing their job and they got a raise. If not, then its time to change government.

The balance of the general populous’ income verses expenses becomes part of the complex equation in the control of inflation, deflation, recession, depression, and expansion. All of these terms are slung around by politicians like ticker tape parades. But do the politicians really mean what they say? Or do they even know what the terms mean? Maybe the politicians only understand what the people want to hear for the next election.

Some people will argue that the government may undertake a new project. Some projects may include infrastructure upgrade. Some projects may be some defense move for our country. Some projects may be a waste of money on a crazy project that lines pockets of lobbyists or friends. Unless we have undergone a major catastrophe, which is extremely rare, then we should easily be able to balance the budget by moving funding around. That strategy currently doesn’t work because it doesn’t get politicians reelected.

It is past time that the citizens communicate the limits and reverse the strategy. We should demonstrate that increasing the spending without balancing the budget means the politicians won’t get elected or keep their easy ride. Only then will we see the termination to the endless upward spiral of taxes to fund the upward spiral of government spending.

Unfortunately, I am thinking that our Republican friends can not be called Conservative according to current economics. Maybe we can still call them Republicans. The Democrats now have a chance if Democrats can understand the majority of citizens can not tolerate a heavier tax burden. It is a true opportunistic year for an Independent candidate.

Every day I hear news that the economy is expanding. Who are they asking? Ask the people losing their jobs. Ask those families losing their homes. For now I am in search of a Conservative hero whether that person be Republican, Democrat, or Independent. I have yet to see anybody who can wear that title.