Posts Tagged ‘fiscal responsibility’

Raise Taxes, Kill Innovation

Friday, March 5th, 2010

As we are approaching tax time yet again and people all over the country are frantically working to get their receipts in order, apply for every little tax credit they can find and compile their returns, I can’t help but think “render unto Caesar the things which are Caesar’s, and unto God the things that are God’s” (Matthew 22:21). Now don’t going running scared, this isn’t me preaching about tithing, rather explaining that I’m fully willing (ok, maybe only partially willing) to pay my taxes for the privilege of calling myself an American and all the opportunities that come with that title. What I’m not willing to do is to continue watching the government piss our hard earned dollars away!

Property tax, sales tax, excise tax, fuel tax, sin tax… All of these are based on what you buy (a direct reflection on what you make). In 1862, Congress enacted the nation’s first income tax law in order to support the Civil War effort. In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the U.S. tax system. The amendment gave Congress legal authority to tax income on both individuals and corporations. Support from the public was based on the idea that only the very wealthy would be affected. Unfortunately, the government (republican or democrat, local or federal) is insatiable and it’s not just the wealthy that feel the sting. I look at it this way, if you tax the rich at a rate at a rate of 35%, what incentive do people have to strive for excellence and pursue the American dream? If you tax the poor they just become poorer. If you tax the middle-class, you essentially thwart their ability to achieve.

I strongly believe that regardless of political views, we have to demand that our government stop spending, quit borrowing and put an end to increased taxes. I, for one, will not vote ‘yes’ on any tax increase until the government can prove itself fiscally responsible. Here’s what I don’t understand, in Hawaii they have furloughed the teachers and therefore have no school on Fridays but there is a beautiful repaving and highway widening project underway. Our children will be stupid but our shocks will last a few months longer. In Washington, state congress approved an income tax on top of the 10% sales tax in an effort to pay down the tremendous deficit. Interestingly, the city I live in is constructing a beautiful new city center and road expansion. Don’t even get me started on California!

Here’s the thing – the U.S. is sliding downward and one thing we can all agree upon, regardless of political affiliation, is the need to come together, make our citizens stronger and demand our government act responsibly. We need to encourage innovation, allowing Americans, regardless of color or creed, to pursue all those things that make America so amazing. Increasing taxes instead of requiring fiscal responsibilities makes us nothing more than sheep being lead to the slaughter.

Stop the World, I Wanna Get Off!

Tuesday, August 4th, 2009

What an absolutely crappy year when you look at the economic changes we have witnessed! I say this because we ALL have seen it and felt it. I’ve read article after article and heard commentary after commentary on the breadth of those affected! In past recessions (namely the down turn we experienced in 2001), the collapses seemed regional not global and while one industry was failing another was flourishing. Not this time around! With such a global crisis and no solution at hand, the blame game continues! Here is a short list compiled by Joe Miller and Brooks Jackson at factcheck.org:

  • The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.
  • Homebuyers, who took advantage of easy credit to bid up the prices of homes excessively.
  • Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.
  • Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.
  • The Clinton administration, which pushed for less stringent credit and down payment requirements for working- and middle-class families.
  • Mortgage brokers, who offered less-credit-worthy homebuyers sub prime, adjustable rate loans with low initial payments, but exploding interest rates.
  • Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.
  • Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.
  • The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.
  • Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up.

I am fascinated by this list and feel compelled to add myself to it as a consumer. A consumer who lives in the US and has become spoiled by the idea I can have anything I want, anytime I want it. My children are learning the same thing and my parents are the ones who taught me. So here we stand, a nation of gluttons three generations deep. The financial collapse, the environmental catastrophe, even the healthcare crisis all brought on by an attitude of excess! Too much credit, too much greed, too much greenhouse gases, too much trash, too much fatty food, too much processed sugar, too many pharmaceuticals.

I believe we have the power to change our world, both near and far! Living within our means is a great start, taking care of our environment in small ways, giving our bodies a chance to work as designed. Mostly, we need to stop blaming and take responsibility. We ALL got ourselves into this mess; it will take us all to get out.  May sound overly simple but most often the best solutions are just that – SIMPLE!