We have entered into a new era, an era of change we can believe in. We can believe in higher deficits and higher spending. We can believe in higher government spending and more profligate handouts. We can also believe in higher taxes.
There are a number of tax schemes being discussed. Some purport to revamp our antiquated tax system, replacing it with something "better." Some schemes suggest "selling" carbon allowances. Some schemes are simple additions of money grubbing. All schemes will increase the cost of living.
Ignoring carbon "cap and trade," the most egregious tax scheme proposed is the Value Added Tax (VAT). Proponents like to tout that the rest of the developed world has a VAT and that we are the lone society without one. To me, this is like saying that Lemmings show marvelous group cohesion and we should emulate their group behavior.
What worries me is what should worry everyone who even pays a little attention to what happens in DC: politicians never leave money on the table. If we hear about a promise to "revamp" the tax system you can bet we won't see that. We will certainly see a new tax, probably multiple new taxes, but we won't see an abandonment of any tax system.
The current proposals promising free (see next posting) health care for all, "fairness" and all the other happy promises that are being made cannot be funded under the current revenue schemes. Talk of new schemes barely brings us to a small deficit when added to the current schemes.
Long before we allow our representatives in DC to make changes, I think we need to extract iron clad promises that things will get better. I don't want to see revenues increase only to watch spending increase too. I want not just a balanced budget, I want a debt reduction. I hope you will join me and let your representatives know that we need real change, not just believable change.
There are a number of tax schemes being discussed. Some purport to revamp our antiquated tax system, replacing it with something "better." Some schemes suggest "selling" carbon allowances. Some schemes are simple additions of money grubbing. All schemes will increase the cost of living.
Ignoring carbon "cap and trade," the most egregious tax scheme proposed is the Value Added Tax (VAT). Proponents like to tout that the rest of the developed world has a VAT and that we are the lone society without one. To me, this is like saying that Lemmings show marvelous group cohesion and we should emulate their group behavior.
What worries me is what should worry everyone who even pays a little attention to what happens in DC: politicians never leave money on the table. If we hear about a promise to "revamp" the tax system you can bet we won't see that. We will certainly see a new tax, probably multiple new taxes, but we won't see an abandonment of any tax system.
The current proposals promising free (see next posting) health care for all, "fairness" and all the other happy promises that are being made cannot be funded under the current revenue schemes. Talk of new schemes barely brings us to a small deficit when added to the current schemes.
Long before we allow our representatives in DC to make changes, I think we need to extract iron clad promises that things will get better. I don't want to see revenues increase only to watch spending increase too. I want not just a balanced budget, I want a debt reduction. I hope you will join me and let your representatives know that we need real change, not just believable change.
