Friday, January 11, 2008

There has been a lot of talk this election cycle about taxes and the burden that those taxes create on the American taxpayer, after all, it is an election year and what better way to create support for yourself than to say you are going to cut taxes? Better yet, point out that your opponent recklessly raised taxes in his/her other offices. Icing on the cake: be a politician and take every stance of everyone else and say they have raised taxes.

By now, if you are a living, breathing American you know two things.
1) The Government wants to take all your money.
2) The Government has little, if any, fiscal responsibility.

Some may say, ‘Well, my candidate is not going to raise MY taxes, they are going to raise them on CORPORATIONS!’ It is a sad day when we do not understand who pays taxes in this beautiful republic.

There is only ONE entity that pays taxes in the United States. ONE. It is not the government and it is NOT corporations. It is the hard working American citizen. Don’t believe me? Think about it… What happens if a tax is levied against a corporation? Do you think they say, “Well, we have another tax to pay, I guess we will cut into some of our profits to cover those taxes.” If you were a shareholder, would you allow that? Um… no.

So as a corporation you are faced with basically three choices:
1) Make an inferior product with components that cost less so that you can pay the tax, but you run the risk of losing your customer base.
2) Raise the cost of your goods to protect your bottom line and to keep the shareholders happy.
3) Decide that the tax burden is too much and seek to move your operations to a location where you can make the same thing the same way and have a lower tax burden, keeping the cost of your product down, your shareholder happy and keeping your corporate money in your corporate account and out of the government coffers.

That is basically it. The cost of the goods go up to help the corporation collect that tax for the government. We pay for the tax. The corporation just COLLECTS it for Uncle Sam and his spending habit. But let’s be careful to review the third item on that list: The real reason that American businesses move out of America is because of the TAX BURDEN, not because of anything else. It is cheaper to move and pay a one-time import tax on those goods than to make them in the United States.

It has little to do with American productivity or Corporate greed, but rather keeping those companies operating instead of closing due to inability to fulfill all the tax obligations that they are currently faced with. That should scare us. Our politicians complain that the business is leaving for Mexico, China, India and the like, and in the same breath provide us with relief by not raising taxes on us, but rather the corporation. We have been duped.

And the majority of us have little clue the amount of taxes that we are even paying! We are distracted by many things of little consequence while quietly the people that are supposed to be working for us are bilking us for huge chunks of our money. All with little accountability.

Greg posted this clip the other day which really captures the government spending situation for us. I thought it was brilliant. We must do something about our tax system. For the future of our country. It is killing us. The burden has been proven over and over that it will only get worse with really no ability to get better. Think Medicare, Social Security and the teenage girl at a clearance sale with daddy’s credit card mentality that our elected officials have when it concerns our money. We must inform our elected officials, those who work for us and represent us, that we do not like what they are doing with our money.

Their rampant spending must stop. Something must be done. Think I am crazy? Look at your paystub and see how much your gross pay is and look at the deductions that come out before we even get our money. Do you know where that goes? And they still need more? Then look at the sales tax that we pay, the taxes on gas, interest, gambling earnings, the double dipping death tax (we can’t even give away our already taxed money to our family after we die without the government taking even MORE of that!), and not last nor least the Alternative Minimum Tax that everyone has been talking about for the last few months.

Don’t be fooled! Your tax return is nothing! It is a pacifier! We have been duped into thinking that return that we get early in the year is a reward from the government when it REALLY is pennies compared to how much the government is stealing from us.

Look at your check. Look at our government spending. Listen to what the candidates are saying. Something drastic has to happen. Radical. Revolutionary.

The government doesn’t need more money, they need more people to call them and share the outrage over their inability to budget and spend. If that was you or me or even a business that operated in this way, the business would not be in existence and we would be in jail for defaulting on everything, yet we accept the double standard and let our government do the very thing that is criminal for us to do.

We need something big to happen. From what I have seen, this is the best thing out there. Don’t believe what you hear about it from political candidates! Do your research. Read the books, read the articles, find out about the special interest groups that are lobbying against it, why they are against it and what they have to lose…

What do we have to gain? So much! But for starters, how about 100% of our paychecks?

We need fair representation. We need a system that works, and we need a government that is accountable for its spending.

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