The Tax Man Cometh, Watch Your Back

by Joel Hendon⁽¹⁷⁸⁾ Red Star

We are swiftly closing the first half of 2009. Six more months to accomplish something or throw in the towel for this year and admit that we are trillions of dollars deeper in debt with zero to show for it. Unemployment is still climbing,,,BUT, they say it is not climbing as fast as it was. Naturally it is slowing down, there will not come a point when every person is unemployed. That just doesn't happen and if it did, there would be no one to tell you about it. The Labor Department released the figures for May which showed that only 345,000 people lost their jobs for that month. This was the least number since last September. Also far less than they had expected. The total unemployment was the highest since 1983 and was tied with that one at 9.4 percent.

Public demand is the primary cause of ups and downs in our economy. Numerous factors were influential in bringing about our present dilemma. But public demand caused the bottom to drop out. Bill Clinton, Barney Franks, and Chris Dodd share the blame for the start of the big problem by pressuring financial institutions to issue mortgages to unqualified borrowers, which was done in huge numbers. But this happened a long time ago. It could have been quietly and modestly handled by taking care of the situations as they occurred, either by lowering the interest rates and/or government guaranteed mortgages. But the financial institutions began to yell "wolf" and claiming to be going under to the degree that the thing became an ideal "blame the other side" issue in a presidential election year.

Consumers went berserk, and started holding on to their money, something which should have been done all the time to have avoided such a booming of retail sales. This caused the stock market to start dropping, more cries for bailout monies, more people abandoning their far too expensive home mortgages. People started cleaning their old cars instead of trading the dirt for a new one. Retail sales plummeted which caused a greatly reduced demand for virtually all products and resulted in many employee layoffs. The more signs which appeared the tighter people squeezed their money to arrive at our present point of frustration.

Obama began classifying our situation as a "crisis" long before the election. Then whimpered that he had inherited this "crisis" and how it would get worse before it gets better, after he was elected. The banking industry, smelling huge handouts, cried louder to the extent that I would imagine many people buried their monies in their back yard. Now after receiving their initial handouts of TARP funds, along with the many governmental strings attached, they are returning those "life supporting" gifts. They weren't in such dire need after all.

But even though returned, these monies will never be put to reduce the debt they caused but rather, given to some others who are willing to walk with governmental strings hanging from every directions. With all of this enormous indebtedness we have accrued, plus that planned for the future and costly health care for all, whose cost figures are not released because they are unknown. Our economy at a virtual stand-still, and our present efforts to allow all the illegal aliens to remain and draw benefits only dreamed of by the citizenry means one of two things. Disaster, or taxes of a magnitude never seen or imagined in the United States.

Our present administration promised to raise income taxes on the wealthy, those earning over $200,000 per year and even said those below that figure would realize a tax reduction. This very well may be how they begin, however, there are not enough people, nor will there be enough taxes to pay for the projected costs. Therefore, the no tax increase, or even a tax reduction on the poor and middle class will be of extremely short duration.

But, excluding the thoughts of income tax problems, within the next six months (the balance of 2009), you will see taxes increased and/or levied on items you never dreamed of. Many states are now in a frenzy to increase their taxes on several items, especially cigarettes. Some states have increased cigarette tax as much as $1.00 per 20-pack! The federal government only recently raised their tax on a package of cigarettes from $.39 to $1.01. The feds are also considering adding up to $1.00 per gallon of gasoline. Considering, means coming soon.

Also in the consideration stage is a federal SALES TAX! Most states and many counties in various states already inflict up to about a 10% increase in your purchases of consumer goods. If you are a smoker and an automobile driver, a trip to the neighborhood grocery store for a pack of cigarettes and a few gallons of gasoline will cost you a mint. Now we are only beginning to look at the coming attractions. In addition to these mentioned look at what is proposed to help lower the cost of annual health care for people:

Raising taxes on alcoholic beverages

Taxing soft drinks

Taking trans fats out of foods

Reducing sodium in packaged foods and restaurant foods

"Reducing medical costs through lifestyle treatment of heart disease"

According to someone's figures in an effort to promote the trillion dollar annually health care bill, the predict that the five items listed above will "The proposed measures would generate total savings or income to the federal government of $38 billion to $61 billion per year."

Nancy Pelosi was quoted as saying last week that all items are "on the table" meaning they are working diligently to find as many items and services to tax as they possibly can. The possible list is extremely long and very enticing to liberal Democrats. They will no doubt add taxes to all interstate lodging facilities, transportation facilities and on and on. You should be beginning to see that the "no increase in income taxes for those earning less than $200,000 and even a possible reduction for some" becomes a mute subject and totally meaningless. Those earning $10,000 or less will see a 10-20% decrease in their purchasing power and their highly touted health care cannot deter malnutrition.

To put the lid on the jar, all of these highly taxed items will be reflected in higher prices, slower purchases meaning a perpetual recession in our economy. Continued high unemployment and general instability.

Readers, this is the very reason socialism is unacceptable to a nation of free people. Remember, "a government powerful enough to furnish all your needs, is powerful enough to take all you have." A frightening truth.

People who are making these plans in Washington, need to be informed by their constituents that there will be a "real change" made at the next election.

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Article submitted Monday, June 15, 2009 & read 184 times.

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