Can we break the cycle of tax insanity?

[Mike Seidle]

After reading the post on Michael Moore's GM ideas it really hit me how tough it's going to be for our nation to become less wasteful and more efficient. Why? Our government is funded by taxing an ever increasing amount of waste - and if we become more efficient in any way other than producing more stuff to sell, we bankrupt some level of government:

• Constant redevelopment creates jobs and lower and middle class income tax (the only kind that is really paid) for the federal and state government and increases the property tax base for local and state government.
• High fuel prices result in increased income for states from gas taxes. Lower gas prices and highways, bridges and so on can't be maintained.
• Sales of expensive new items like cars create more sales tax for the State and create scads of jobs that create income tax.
• Disposable products that don't last generate more income in the form of property taxes and jobs making, distributing and selling them
• Undeveloped land does not produce as much property tax as developed land does.
• Farms produce less taxes than factories and office buildings.
• Trees don't pay taxes. People who own property with just trees pay less in tax than land with lots of stick built McMansions.
• Oh, and turning over houses and other large appreciating assets generates capital gains - capital gains isn't paid until someone converts an investment into cash.
• Wealth isn't created (and taxed at death) without cheap property to develop into expensive property
• Utilites like electricity are heavily taxed. If you use more, the government gets paid more.
• Consumer debt generates growth in asset value for banks, income and jobs
• Try to be healthy and without vice? stop drinking gambling and smoking? Thanks, you just cut the government's revenues.

So, it's kind of crazy. In many ways, in our quest to use taxes to encourage economic growth and to force certain behaviors has created the worst situation of all: a government that is financed by waste, destroying the environment and abusing the people's health. Maybe it's time to look at limiting where the governement can collect taxes.

[Tino Marquez Jr.]

Try to be healthy and without vice? stop drinking gambling and smoking? Thanks, you just cut the government's revenues.

I've always found this to be a bit of an odd game plan for those we elect to initiate. Lets pay for this gov. program by raising the tax on cigarettes, and lets BAN smoking every where we can. What?? If anything our elected officials should be encouraging everyone to smoke and even have cigarette machines in the cafeterias of schools to fund all their initiatives. Yes, this is sarcasm.

My favorite thing is the logic in closing anything to save money. If we close these plants and dealerships down, we will save this much money…not to mention the ripple effect of those towns suffering from the closure of said plants or dealerships. So the money you saved theoretically is now being pumped back into the town or community in the form of welfare or some other assistance. Beautiful.

I think Gary nailed it though, only a revolution, collapse or a huge asteroid is going to end all this. In the mean time, to see how America is going to end up, rent the movie Idiocracy.

[Chris Flener]

Gary, that's what I said, lol. The government is spending to much. They spend first, and tax later. If we stop the spending (as I said), you don't have to tax later.

Your explanation was more detailed though...very nice!

[Chris Flener]

Yes, we can easily break the cycle...stop spending so much money!!!

If the government spends less, they need less tax money...and therefore, the impact of having less tax revenue is no longer an issue!