Tuesday, February 2, 2010

I want to Budget like Obama

Watch your wallet, folks. This budget is an absolute insult to every American-rich or poor. Isn't it interesting that the govt. has decided that an individual who earns $200 thousand is just as rich as a person who earns $125 thousand and happens to be married to another individual earning the same amount? If these folks have the disposable income, and you take more from them- raising their tax percentage and taking their mortgage deduction away- do you expect these people to keep spending? Will these people file as individuals? Oh, and they are taking their charitable deduction away as well. You non-profits out there, when you check the collection plate how many ones versus twenties do you see? Do you think these new policies will help put more twenties in the collection. Of course not.
I could go on, but lets look at what taxes do. How many of you take into consideration the tax bill when you purchase a car? Think of what cigarette taxes do or are intended to do. Taxes influence behavior. They will tell you taxes fund the govt. and is necessary to blah, blah, blah. But taxes influence behavior. And the more taxes imposed on something, the less of that something people will engage in. Cigarette taxes, less people smoke or smoke less. Fuel taxes- people travel less, car pool or buy small cars. And income taxes keep people from making more money. The less they make the less they can spend. The less they spend, the more small businesses, small local businesses, benefit or have to go under all together. Understand that these people change the tax policies without regard that the money circulation in this economy is connected to each and everyone of us eventually. OR they know exactly what they are doing. What are you most afraid of?
If taxes influence behavior, than imagine what low taxes do to all of us.
Think about the above in reverse. Bitch all you want about smokers, but until you ban the substance, it's still legal and it's an agricultural industry. Taxing it affects them. Car sales, local merchants, travel...if this economy had less of a tax burden, industries would flourish and cities and states would all benefit. New business would sprout, innovation would prosper and we all would benefit. But with tax and regulation (which is a hidden tax- every regulation has a cost to a company- ask an owner they'll tell you) all of this is stifled.
What a shame. What's more frightening, there are people in power in this country who mean to do the opposite either to control behavior, control the system or punish the creators. Thus, they harm us all and when the spirit of our founding- the pursuit of our happiness- money is generally a by product of that pursuit- is suppressed.
Your homework- see how many business owners are now members of congress. See how many are lawyers. Don't want to to the homework? Then take a guess. You know the answer. Too many of one, not enough of the other.
There's our problem.