Tuesday, August 2, 2011

Debt Doldrums

I am back. Or for those who hadn't noticed, PC Fugitive has been down for nearly a year due to technical problems. But switching from my PC to my new IPad and adding a blog app and I am finally back in business. Yeah!

The funny thing, however, is that even if I could write I am not sure how much I would have. It just all seems so redundant.



The Democrats want more spending and would increase taxes to pay for some of it while the Republicans, led by the Tea Party, want less spending and fewer taxes and to not raise the dent ceiling. But as we all know now, after months of bitter arguing the debt ceiling was raised, some new spending approved but thanks to the Tea Party there are no new taxes. Yet.

When the president gave a short speech about the new debt ceiling he primarily talked about how we would pay it off. Once again he talked about taxing the rich through new taxes, closing loopholes or taxing luxury items like corporate jets. It's probably a losing battle but let me try one more time to explain why Obama is totally wrong, again.

First, the United States top 10% wealthiest citizens pays 45.1% of all income


taxes. (http://www.taxfoundation.org/blog/show/27134.html) This is more than any other industrialized nation. In France, the top 10% richest payed just 28% while in England it was 38.6% of all personal income taxes. So our richest citizens are already paying substantiously more than their counterparts yet the Democrats want to take even more money from them! We can't let that happen.

As for taxing luxury items, doesn't anyone remember the Carter years? Jimmy had the same idea except instead of going after jets he added a new tax on luxury boats. And guess what happened? The rich stopped buying boats and then all across New England's coast people were suddenly jobless.


No one bought boats so skilled shipmakers were let go. Docks that relied on docking fees were empty. The businesses that catered to the people who were now unemployed started to go bankrupt. So basically the only people hurt by that luxury tax were the middle class. And I don't know this for sure but it only figures that if fewer luxury boats were sold than even with the higher tax rate the government probably collected less tax dollars on the boats. Typical. Whenever the government tries to interfere they always make things worse!

So what is the solution? I have a few ideas (surprise, surprise) but plenty of time to talk about that another day. And now that I have my new iPad and blog app I have no more excuses for not keeping this up-to-date. So thanks for your patience and welcome back!



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