Extend Bush-era Tax Cuts--Government Doesn’t Need The Funds
In an election year, it is good politics to ratchet up the blame-game, and so the debate to extend Bush-era tax cuts will continue. I am surprised only a few people are talking about what I believe are central issues: the likely use of extra taxes, and the need for funds. What will the Federal government do with more tax revenues? Does it need more money? The answer to the first is, they will waste the funds. That’s what governments do; check their track record. Therefore, the answer to the second is, no.
Neither the deficit nor debt will drop if the government hikes taxes on high-income earners. More funds mean greater likelihood of creative useless spending. We can trust government to find outlets to spew out money without positive results.
The new consumer protection agency is an example of more government spending for no clear results. Why not reduce significantly the many oversight departments, and focus those remaining to work effectively with proper accountability?
Certainly, financial institutions need to be more transparent, but do we need another government department? The excesses leading up to the 2008 USA housing meltdown was obvious. What were regulators doing then? What was Congress doing? Even I saw it coming. Hiring or shuffling 900 more public servants will change nothing, especially when the real issue is a need to remind individuals to take responsibility for their actions. We must stop accepting the blame game. Politicians need to recognize victims as victims.
Still, the USA does not have a monopoly on squandering tax dollars. Canada is just as bad. Take our Federal bureaucrats. We have many pristine waste examples, but probably this is best. It is beyond stupid; it is insane. Our Federal government increases funding for office accommodation automatically with increases in salary costs. Ridiculous!
We must strive incessantly to shrink government, try to get them to change archaic spending formula, and like Governor Walker’s government, reign in public-sector unions. Even so, I think the bigger picture is to reform the tax code in Canada and in the USA. Doing this requires a thorough understanding of how government gets its tax revenues. It has one primary source. Business.Continued on the next page