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Saturday, July 31, 2010

SOAKING THE RICH? WHO CARES?

"Who cares if the Bush tax cuts for the wealthiest Americans expire? I'm not one of them, so as long as MY tax cut remains in place, why should I care? It's nothing to me." This, understandably, is the attitude of most middle-class Americans. I get it. But what is the attitude of the 43% of American wage-earners who pay no federal income taxes at all?
Do they care if the rich get soaked? Nope. (See the above.) Would they care if the tax rates for middle-class tax-payers went up? Nope. If they're not paying, they don't care who does. And since they're not paying, why should they care how tax money is being spent? They have no skin in the game.
Do you think that it is desirable that so many Americans should be disincentivized from caring about how tax money is spent? Let's recall the advice of Deep Throat: Follow The Money. That's how you know where the Federal Government is going. Unless the government is spending YOUR money, you don't care where it comes from, and you don't care where it goes.
This is why all Americans need to pay income taxes, even if just a little bit: It makes you care, it makes you pay attention.

CARS NOBODY WANTS

General Motors/Government Motors is ready to begin selling the Volt. For $41,000. They first thought, a long time ago (long before the bankruptcy, etc.) that they could sell it for $28,000. But things have changed.
Oh, wait! The majority shareholder, the Federal Government, is willing to subsidize purchases of the Volt with a $7,500 tax credit! That brings the actual cost of the base model down to $33,500! Except you have to finance the $41,000 up front, then get the tax credit when you file your next tax return. OK...
My first question is this: If someone wants to spend $41,000 on a brand spanking new car, why do I have to help them pay for it with my tax dollars?
My second question is: Who is going to spend $$33,500 - $41,00 on a car the size of a Toyota Corolla? I don't think many people will do that. I think this is the same old story, "General" Motors trying to sell cars nobody wants. This whole thing is about "Government" Motors pursuing a political agenda. On my dime.