Imposition 2012-Tax Cuts

   Tax cuts do not actually exist. Once a tax is in place it is in place because the revenue from the tax provides a service for someone, intended or otherwise. We like our services. So, once we have the service we will not easily surrender it.

   The "Bush" tax cuts, blamed on or credited to our former president are seen as tax cuts from the federal level. They are much bally-hooed or villified, depending on the day. 

   In actuality, they are not tax cuts at all. The federal tax reductions of the last few years have passed on tax burdens to more local levels of government, or pushed the tab for continued services, which have not been diminished, into the future. Somebody has to pay for the potholes.

   So, it is ludicrous to talk about tax cuts or tax rates cuts if we are not facing up to the way services will diminish or debts will amass. As Dave Ramsey is my witness, you cannot borrow your way out of debt. Greece (a Western European country now facing starvation among its citizenry) piled up debt to the point where its debt amounted to 159% of its GNP. The "austerity" measures you hear about on the radio from Athens may be hard to hear over the sound of the riots in the background, but, be sure, the austerity measures are all about cutting services to the citizenry.

   We have not yet had a serious discussion about cutting services made available by the various strata of governments in the United States. We talk about tax cuts as if they matter. They do not matter, unless we are talking about cutting services as well.

   I will have more to say about cutting services next time. Suffice it now to say, if a politician talks to you about tax cuts, lowering rates and the like, he/she is not giving you the story you need to hear unless he/she also talks about the coming loss of services.


Opinions expressed here are mine alone.

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