Wednesday, March 27, 2013

Alone in The Car: Almost Time to Pay Our Federal Taxes. Oh, Yea.


                                                              photo credit on this site.

April is almost here. Where I live the snow won't go away. Lucky for us, the white stuff does melt quickly this time of year, but we really don't want any more. April is also the time to pay taxes. Oh, joy.

Once again Congress is thinking about how to pay for all the programs the federal government funds.
I think it has been interesting how different agencies, etc. have decided to cut 2% during the sequester period we are now in. No more White House tours? Really? That was the best you all could do? There were other examples to catch the public's attention, but you understand Federal decision makers didn't take the cuts seriously. Guess I don't have to either.

Well, each chamber of our Legislative Branch has passed a budget. Wow, after 4 years way to go! Of course the federal fiscal year ends September 30th. The question is, "Can the Senate and the House be able to form a conference committee, make compromises, send it back to the House and Senate for a vote to approve the revision budget before September 30th?"  Good luck with that, because then they will have to start all over again for next year's budget.  Oh, by the way, the Senate version wants to raise taxes for the top wage earners (I wonder where they will move to?)

In keeping with my last blog about the Middle Class (Middle Class and Their Discretionary Money )
here is a website about low wage earners, http://www.deseretnews.com/article/865576307/Minimum-wage-workers-cant-afford-their-rent.html This news article describes how tough it is for low wage earners to pay basics such as rent. What does this have to do with taxes?

I believe if everyone pitched in and paid taxes, better programs could assist those who really need help. Americans are known for their charity and are willing to give to the truly poor and needy. But I am not sure if we have all the best programs right now. Government has gotten so big, the right hand doesn't know what the left hand is doing. Sequester could have set a model for eliminating, even a little bit, the programs that don't work. But what do the people inside the Beltway do instead? Make a mockery of it while those like the poor continue to suffer.

How do we get everyone to pay their fair share? A Federal sales tax. I know, I wasn't for this either awhile back. But that was before illegal immigration was such a problem, before drug dealers were stealing farmers' fertilizers, and before my grandchildren will have to fund their great-grandparents' Social Security checks. Everyone contributes by eliminating income tax and beginning a sales tax.

Right now many illegals don't file income taxes, but they make purchases daily. Drug dealers create profits all the time. Do they pay taxes on their businesses or personally? No, but they would with a sales tax. High, middle, and low income members of our society would be treated exactly the same. Isn't that what all the controversy is about anyway? I purpose 10 percent. It is easy to understand, partners better with our consumer based economy, and doesn't have exceptions for certain lobbying groups. Government: you live within your means just like everyone else. You don't get a "bye" just because you are government. Ten percent is your budget, period.

Other solutions:
1. Federal agencies are required to cut their programs. Just like when you are organizing your home:
keep if you are using it, trash what is broken, donate to charity what you no longer use. In this case, coordinate/turn over to non-profits parts of programs that were working, but not enough to justify funding anymore with citizens' money. Ultimately this means more funding available to efficient and successful Federal programs.

2. Get the Federal Hand out of every cookie jar. I know, the Federal Government feels their view from the top can make a contribution. Wrong. We simply don't have the extra cash for this. If you think of how many people "touch" income taxes going all the way up to the Feds and then all the way down again to fund programs in a city/town, it is just not worth it. Keep Federal programs that make sense at the Federal level. The states should do the same. This again would release more funds to reduce the debt or give to successful programs.

3. Inform the public. I bring this up because I believe some of the "low information public" will start to pay attention again if they are part of the equation. Once cash in their wallet is less than before by paying a federal sales tax, they will want to find out why, discuss with others, and evaluate what is going on. What will happen when the poor pay taxes? Hopefully become more informed, better their circumstances, and vote for people who will engage with those across the aisle. The ones that really have dire situations? Well, we Americans will gladly support them. We all know friends, family, and those we care about who need a helping hand.



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