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Here’s Your Tax Solution

Good news, it looks like your tax rate is about to go up. Good thing there are no political agendas at work here. I’d hate to think that the best plan be implemented.

But this is what we voted for. A blabbering boob who says we have stubbornness that people won’t come together on a deal, while being the guy who hasn’t even considered to deal, that is when he’s even working.

Of course the best part is that if a deal is reached in the next half a day, the blabbering boob with take all the credit and the no doubt historical deal will do absolutely nothing to fix any of the countries financial problems.

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No Pain, No Gain

It’s rather ridiculous that people, particularly in the news media, seem to think the economy is okay and on the way up.

Why is it ridiculous? Well here’s a good list of 75 econ. statistics from ZeroHedge that’ll blow your mind.

Here’s the real problem with the economy, the stimulus, the fiscal cliff, taxes, spending, all of it. It hurt going in. The economic contraction that started the recession in 2007 put a serious damper on the economy and it’s affect was felt by everyone. Even those not directly affected felt it’s presence.

That was just going in. We haven’t actually done anything to fix the problems, nor prepare for anything to get worse. The economy is saddled with serious baggage. For the economy to actually and truly improve it will have to seriously shape up.

I can't go on...this is too hard

I can’t go on…this is too hard

The term ‘shape up’ is actually a very good one because it is an excellent metaphor for the situation. Americas economy is fat and out of shape. Sure it’s robust, but it can barely move and it has diabetes. However it has continued doing the same things that turned it into a fat tub of lard and given it diabetes.

In order to actually improve it’s health it is going to have to hurt itself. It is going to have to go to the gym and workout out everyday in the future in order to improve. That’s going to hurt. Exercise demands effort for even an in-shape person and it’s going to actually hurt someone who isn’t even close to being in-shape. Merely going through the motions and pretending that it’s working out won’t help either. It has to really feel the burn, and not just feel tired or strained, to get improvement. Most people exercise don’t understand real strain. They never experience it, and therefore the first bit they do feel is to them the greatest pain ever when it reality it’s nothing.

The United States felt pain going into this economic mess it’s become and it’s going to have to feel it a lot worse in order to come out again.

Incentivize Congress to Balance the Deficit

Last week I had a post suggesting that if anyone really wanted to lower taxes they would eliminate automatic deductions and make people see how much their losing when they cut that check to the government every month.

I continue the suggestions for how to handle the countries debt issues with this post.

If anyone in the government was serious about dealing with the deficit and debt there is an easy solution.

If the government cannot create one budget in the black in 3 years than they must pass a balanced budget for the next year before they are allowed to do anything else.

To further incentivize that, pay and benefits could be withheld(from congress) until the budget is balanced. To even go a step further you could say that if they don’t balance out that 4th years budget that they will have to pay back all of their salary and benefits from the previous 3 years.

Though not all members of congress are as rich as John Kerry or Michael McCaul, but I doubt good old John Forbes would want to pass on a paycheck. Surely the less affluent members of congress wouldn’t want to.

The threat of the fiscal cliff hurts the nation more than it does the government, and members of congress are not likely to be affected personally so why not make them bear a personal responsibility for actually doing their job?

Lower Tax Solution

It’s not likely that taxes will be lower for anyone next year. By not likely, of course it’s impossible. However if republicans really want to lower taxes they would do well to look to the future. Change people’s attitude on taxes and you can change their mind.

How do you change their attitude? Advertising, research, PSA’s, and logical arguments? In a perfect world that would work. However we live in a rather dumb and ignorant so something more personal is needed.

If republicans want to lower taxes the best thing they could do is to remove automatic deductions. If people were forced to cut a check every week or month in order to pay their taxes, if they had to actually sign the money away to the government, I doubt they’d be as oblivious as to how much money they’re losing.

Through taxes, insurance, and my 401k contributions I used to give up about a third of my paycheck every week. Even though I knew I was losing that much money, it didn’t really bother me. Not in the sense that it festered and kept irritating me. I just accepted it and moved on. No doubt it is much the same with most people.

However human behavior is not all that hard to predict. If everyone had to sign over large chunks of their income that they previously hadn’t paid enough attention to to fully realize they were getting it, I think their minds would change relatively quickly. Make them feel the personal effects of the tax rate and their reaction will follow.

sales-tax-cartoon-copy

Define – Negotiation – And Its Context In The Fiscal Cliff

ne·go·ti·a·tion [ni-goh-shee-ey-shuh n]

noun

1.mutual discussion and arrangement of the terms of a transaction or agreement: the negotiation of a treaty.
Why does the word negotiation keep being used in the fiscal cliff news reports? There are no negotiations. A negotiation requires an agreement to be worked out that satisfies all parties involved. In this republicans and democrats. Republicans want to cut spending. Democrats to raise taxes.
Therefore when John Boehner, the republican with the final say, says that he’s willing to raise taxes and yet Obama and Harry Reid aren’t willing to even consider spending cuts, how does that qualify as a negotiation? It isn’t. It’s a stubborn demand by people who are willing to let the cliff come because the adoring media has not dared to even suggest that they are not bargaining in good faith and in fact painted them as the saviors without ever questioning whether or not they actually make any sense.
This is a perfect representation of the false mentality of having peace without war. A mentality that exists in America’s elites and largely dictates our foreign policies.
If you want peace, prepare for war.
Si vis pacem, para bellum.
-Vegetius
If you want something, you have to be prepared to fight for it, even if what you want is to not have to fight.
Korea, Vietnam, Iran, the Balkans, Somalia, Iraq. All situations where the United States was not prepared to commit itself to a fight in the 20th century and lost. Regardless of motives or reason, if you want to win you have to be willing to go and get it. Victory is not presented with an engraved plaque by a white gloved butler on a silver platter, it is fought for and earned.  It requires sacrifice and commitment.
Thermopylae, to Bunker Hill, Waterloo, the Alamo, Gettysburg, the Ardennes Forest, Iwo Jima. All fought for because they must be fought. Crying for peace does not help you when the enemy does not care for your demands. He will not stop because you don’t care to defend yourself, in fact it motivates him even more to drive his bayonet into your belly.
What we see in these fiscal cliff negotiations is the false belief by some that they can achieve a mutually agreeable outcome without willing to fight for the very points they want or so claim to represent. They are not willing to make a stand and state their case. They are caving in because they believe that they can have peace without war, that without standing up for what they believe in the other side will be overcome with compassion and treat them equally.
To sell out on negotiations that are hardly even being negotiated is to sell out the entire idea of not just smaller government, but of sensible government, an affordable government is not too much to ask.
On this issue John Boehner and Barack Obama could each be represented by a quote from Sun Tzu’s legendary book, The Art of War.
For Obama he has applied this maxim;
For to win one hundred victories in one hundred battles is not the acme of skill. To subdue the enemy without fighting is the acme of skill.
For Boehner, he is unfortunate to be applied with this;
If ignorant both of your enemy and yourselfyou are certain to be in peril.
It’s quite simple really, republicans lost this fight the moment the man who represented them, Boehner, gave up. There can be no hope for victory once you have surrendered yourself to the mercy of your enemy.