On Taxes….
We all have our opinions (some of them very strong) on this subject. Some feel that taxing the hell out of people stifles growth and sends small business owners (which pay most of our taxes) running for the hills vs. investing and growing their companies which would mean paying more taxes vs. making more money. These people believe in “sharing the prosperity” of others so that all can be rewarded for the work of few.
As you probably know, I’m not one of those people. I don’t feel entitled to “share” in the prosperity of others. I do think my success should be dependent on my own work, and not the work of others. That being said, below is a list of my thoughts on specific tax policies (some of my views just might surprise you, so please read on):
1. Social Security. This is a regressive tax. Under the current law, we all only have to pay taxes on our first $97,500 of wages. This essentially works out as a tax break for everyone that earns over that amount. I think to be fair, ALL earnings should be subject to social security withholding. An immediate change in this area just might help us save the system we have all come to think of as (at least partially) our retirement cushion. Although the system is actually in better shape than it was in the 90s, something needs to be done to curb the massive impact baby boomers will have on the system. Is it fair that removing the cap means we all pay more than the people currently receiving benefits? No. But life isn’t fair. Sometimes we have to pay the price for lack of foresight in the past.
2. The gas tax. A necessary evil, I think we need to look at what exactly this money is being used for. Given the current state of our roads and bridges, I’m highly doubtful the money is being spent where it is needed.
3. Alcohol and cigarette taxes. Yes, yes, and yes!!!! I agree that these luxury goods need to be taxed, and significantly so. Because we don’t need these items to live. Or to feed our families. But those who do use these vices to the extreme cost society billions and billions of dollars in increased insurance premiums and taxes for entitlement programs. There are many, many current and ex-smokers currently receiving medical benefits through Medicare and Medicaid. We are all paying to keep these people with self-induced chronic diseases alive. Yes, tax cigarettes and alcohol.
4. A “fat” tax on snacks and fast food. Yes. Again, these things are not necessary to live, but they do cause a slow death which we all wind up paying for with increased taxes for entitlement programs to cover treatments for obesity and diseases caused by obesity. Also, we all pay astronomical insurance rates because of the burden that people who over-indulge themselves put on the system. I also believe those diagnosed with self-induced obesity (not caused by endocrine problems) should pay much higher insurance premiums than those of us who actually bother to exercise and at least try to keep our eating in check. Not a tax issue or politically correct view, but it’s my view - so there!
To summarize….take the cap off social security withholding to save the program and make sure we all pay our fair share, examine where the gas tax dollars are going, tax the hell out of luxury items and junk food, and make lazy self-indulgers pay their fair share of insurance premiums.
Oh, one more thing…not a popular opinion with many, I know…but….if we want corporations to pay taxes on facilities where they produce goods and pay entitlement taxes for the people that work for them, then we are going to HAVE to stop taxing the hell out of them. It just seems silly to me that they find it easier to make a profit by producing their goods half way around the world, creating the need to pay high shipping costs to get the products back here to sell than it is to pay very high property and other taxes to produce goods and provide jobs here at home. This is a very twisted scenario that could be easily fixed by treating American-based companies as fairly as we treat foreign competition.
That is all. Thoughts?




