Tag Archives: Taxes

Everyone Benefits from Taxes


American MadeTax funds going to the government don’t go to $16 cupcakes as  a FOX NotNEWS story recently pounded.  CNN and network news looked into the claim and found the cost per government meeting attendee averaged $16, but that cost went for the conference room, beverages, other food, paid the servers, and yes, there were some cupcakes.  Part of that $16 paid for several jobs that day.  FOX did not report that because that is reality which they don’t typically report.

Tax money pays for many things which benefit all citizens and companies, and all these things pay for jobs.  Tax money pays for:  an educated population, roads to move company goods to market and their employees to and from work, police and fire precincts to maintain public safety, maintaining all land records for everyone from major corporations to small business and to and every couple hoping to retire off the value of their property, a military which buys massively expensive goods from many of our country’s companies, regulators protecting our retirement savings from the greedy, and on and on and on.  All of these government expenses require jobs to fulfill them.

Despite all the Bush era tax breaks, what were most of the companies doing in the new stories you read the past few years?  They were reorganizing for cost savings.  In other words, they were cutting jobs or moving them overseas so their investors would maintain higher profits.  CEOs are not job creators.  Their job is to run each company with high output from the lowest possible employee and cost base.  Job cutting creates higher unemployment which means there are fewer people able to buy a company’s goods and services.  With fewer people buying a company’s goods, that company eventually needs to cut a few more jobs.  As this predicament inevitably approaches the extreme, the only Americans making money are those rich enough to buy 100,000 widgets from China to sell to the few Americans able to afford them.  Also, there will be some low wage American jobs to distribute these Chinese goods.

An excellent NPR article based on an interview of Nick Hanauer, an author and venture capitalist, can be found at Just What Do the Rich Have That’s Taxable.  Nick is nearly a billionaire and explains most of the rich pay 11% and often lower in taxes.  For example, he explains some actual examples where people made over $250 million and paid no tax on the income.

Consider this:  Who benefits more from a widely educated work force, good roads to ships products across the country, and fire and police precincts to protect their money and property, a maintenance worker making $35,ooo/year, or a CEO and board members of a large, profitable company?  Both benefit from those government services, and it’s possible none of those people would have their jobs without those services.  The difference is, without those services, the maintenance worker might lose up to $35,000, but the CEO might lose $500,000 or $500 million that year.  If you were the CEO, wouldn’t it be worth paying $100k or more toward schools, roads, public safety, and land record maintenance to protect the rest of your huge salary instead of demanding the lower income person from paying $5,000 more which might make your products too costly for them?  You can still afford your caviar and French wine.  In fact, the government might be spending money on your company to build the roads or create the materials.

If the republicans demand small government at a small cost, and then mostly campaign on platforms requiring bigger government in our bodies and bedrooms (anti-gay, anti-pot legalization, anti-abortion even when raped and under aged, etc.), then they need to leave government.  Why elect people to government who don’t believe government is a benefit?  Let people lead us who know government spending buys American made goods and materials, and builds our middle class which can then also afford to buy American made goods and services.  A strong American government also leads world foreign policy which ideally creates stabilization in the world which is good for everyone, rich or poor.

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Filed under Government Taxes, Spending, and Deficits, Political Parties & Partisan Politics

Tax Cuts vs. Government Spending


As David Stockman, the architect of Reaganomics explains in his books and articles, there is a time and place for tax cuts, but its use is limited and any political religion based on cuts is a perversion even from the original Reaganomics.  Stockman will also tell you Reaganomics was a failed policy that led to soaring deficits.  An Internet search on David Stockman will provide many articles, or read the middle of this article.

Stockman said the recently approved tax relief for the rich is misdirected, but was an unfortunate outcome of republicans holding all other legislation hostage without passing them.

The fact is, government spending does create jobs as well as return some control of the country’s financial might to the people who help earn it, the working class.  Without the working class, the country’s upper class would not exist, yet, it is the upper class controlling the purse strings and who often (not always) chooses raises for themselves while fighting raises for others.  As for tax burden, richer people find many ways of paying lower tax percentages while low to middle class families don’t qualify for most, if any, of tax breaks.  It’s just not true that we’re making the rich pay for everything.

Taxes pay for roads, hospitals, schools & universities, firemen, police, disaster relief, and all kinds of administrative support such as safe keeping of our land records so nobody can sneak land out from under another.  Taxes also support investment in industry.  Obama wants to spend money on repairing our aging infrastructure, and wants to redirect oil subsidies toward greener technologies so America will be a leader in this infant industry, not just other countries.  If you want to benefit even more from taxes, invest your business into American infrastructure or green technology so the government will pay you and will reinvest your taxes back into you.

Republicans are right to spend money on some industries, so let’s spend money on growing industries still in their infancy instead of spending it on aging, waning industries like oil.  Democrats are right to spend money on repair and improving our country’s infrastructure to benefit business and individuals now and in the future.  Republicans are right to put money toward war costs, but enough money needs to go toward taking care of our veterans, not more none-compete contracts for Halliburton.  They voted for war in Iraq with Rumsfeld saying it wouldn’t last 6-months, but they had no plans to pay for the residual costs.

The last 30 years show republicans are not conservative or small government when it comes to their party’s wish list, and they don’t want republican financiers to pay for it either.  However, we need to pay our expenses through taxes.  The fact is, the richer a person is in this country, the more they benefit from our country’s infrastructure, so they should pay more than the person working 2 jobs and just staying afloat.  Richer people have huge cushions to last through unemployment while the poor and middle class people have little to no cushion to handle unemployment.

The government helps maintain private spending by ensuring all families have some money to spend.  Private spending keeps our businesses afloat to continue providing jobs.  There is no way around this.

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Filed under American Government & Institutions (state & federal), Government Taxes, Spending, and Deficits

Vote to Repeal Healthcare


An overwhelming majority in the U.S. sees the economy, or more specifically jobs, as the most important issue for our country.  However, the first thing on the agenda for the new Republican controlled house is to spend valuable time discussing the repeal of healthcare legislation passed last year.

News organizations generally state repeal will never happen since the Democrats still control the senate, and Obama has veto power even if a vote to repeal could pass the senate.  You can read about efforts to repeal in this NPR article link.

Interestingly, according to articles in The New York Times and Accounting Today, in order to vote to repeal new healthcare legislation, the Republicans made an explicit exception to their new rule to pay for spending increases by cutting spending elsewhere.  The Congressional Budget Office projects a $140 billion savings over 10 years with the new healthcare legislation.  Repealing healthcare would have meant they’d have to cut $140 billion in other spending.  Republicans say the new healthcare legislation is costing the government, but if that were true, why did they explicitly exempt healthcare repeal from their “cut-as-you-go” rule?

Basically, the house Republicans are diverting time & energy from dealing with the economy and creating jobs toward a feat that will never happen.  Also, they’re creating uncertainty for business which always costs time & money.

By allowing business to plan for legislation that has already been passed, and focusing on new legislation designed to stimulate the economy and create jobs, congress will have the best chance at steering the country in a positive direction.

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Filed under Healthcare, Political Parties & Partisan Politics