Taxes Tax You Over and Over

Social Security in 2010 spent $577 billion but only took in $544 billion, the first time in the 70-year history of SS in which outlays exceeded dedicated revenues.

That shortfall was just in Social Security, never mind the rest of the budget. This comes after decades in which SS taxes have been spiking as payouts have been sinking. And it’s getting worse every year. The future of SS is very bleak.

Yet Social Security recipients got a 3.6% increase in 2012, which was paid out of the federal debt.

So how can a program that is broke actually increase its handout?

Answer: Because this is socialism at work. And this little incident explains the entire economic crisis in a nutshell.

“But these are retired people!” we are supposed to say. “They need the money!”

Yes, that is what socialism always says about those on the receiving end of government largess. But the taxpayers need money too, don’t they? Why are their needs not considered?

It is because socialism focuses on the “takers” and never the “givers”. Because Democrats get their power catering to the “takers” via the government, everyone from legitimate SS recipients to welfare freeloaders.

This is why taxes go up and up through increased income taxes, sales taxes, real estate taxes, excise taxes, gasoline taxes etc. The government also gets money through myriad ‘hidden’ taxes and fees, two of the Democrats’ favorite ways to get more income surreptitiously.

For instance, every time you pay your phone bill you are paying a small ‘hidden’ tax to provide free cell phones for so-called “poor people”.  Or you pay more for the fee to get a hunting license or car registration, which is just another way for your state to get more money without directly raising taxes.

All of these hidden taxes and fees on top of the big, known taxes are consuming the American economy and the taxpaying middle class dollar by dollar. It is all incremental such that we hardly have noticed how it has grown over the last 50 years.

There are other ways for the government to get more money without you knowing it. For instance, every product you buy at places like Home Depot or WalMart or even your local shoe store is higher in price because these companies and businesses need to pay more and more in taxes. The United States has the highest corporate tax rate in the world.

So the next time you hear the Democrats say that they just want to tax “business” or “big business” always remember that it really is just another tax on you the consumer. Because to Home Depot and WalMart their corporate taxes are a ‘cost of doing business’ like wages, inventory etc. And Home Depot and WalMart and all other businesses pass their ‘costs’ on to customers in the form of higher prices.

This is how taxes tax you over and over, even in ways that you never think about.

Meanwhile hardly any handout programs have been cut in this recession as millions of people who pay the increasing taxes have lost their jobs or seen their hours cut, or have lost their homes. Most handouts in fact have increased like the Social Security payout. 

At the same time precious few of the 20+ million government workers in America on the local, county, state and federal level have lost their jobs precisely as the private sector has suffered huge job losses. Reported the American Enterprise Institute on September 10, 2012 about the 44 months of the Obama Depression:

There were 2,790,000 federal workers in January 2009 when the president took office, and now there are 2,804,000 workers.

Meanwhile more and more expensive new public schools are being built, like the $500 million high school in Los Angeles. And high-cost urban trolley systems continue to be built and operated with government funds even though they have very low ridership levels.

And more government studies are funded about ‘global warming’ and other fake science. While money is given to Planned Parenthood. While solar energy is being subsidized by the taxpayer even as solar energy proves itself a failure. And on and on.

Even during the so-called ‘sequester’ the Department of Homeland Security is buying…. bagpipes. This would sound like a joke if it were not so insulting.

The upshot of all of this is that the “takers” who get money from the government are seeing few if any cuts in this recession and often are seeing increases, but the “givers” (the taxpayers) are paying more and more than ever as private wealth dissipates and the economy contracts.

Here is a bloomberg.com article called Beltway Earnings Make U.S. Capital Richer Than Silicon Valley. This stunning report said that:

Federal employees whose compensation averages more than $126,000 and the nation’s greatest concentration of lawyers helped Washington edge out San Jose as the wealthiest U.S. metropolitan area, government data show.

The U.S. capital has swapped top spots with Silicon Valley, according to recent Census Bureau figures, with the typical household in the Washington metro area earning $84,523 last year. The national median income for 2010 was $50,046.

The figures demonstrate how the nation’s political and financial classes are prospering as the economy struggles with (high unemployment) and thousands of Americans protest in the streets against income disparity, said Kevin Zeese, director of Prosperity Agenda, a Baltimore-based advocacy group trying to narrow the divide between rich and poor.

“There’s a gap that’s isolating Washington from the reality of the rest of the country,” Zeese said. “They just get more and more out of touch.”

So if Prosperity Agenda is seeking to narrow the gap between rich and poor, then it should look at the richest place in America today, in Washington, DC, where Prosperity Agenda’s Democrat allies, lawyers and lobbyists are living large.

But you will never hear a Democrat complain about the increasing concentration of wealth in the hands of the government. It is always Wall Street, the banks, the pharmaceutical companies, “the rich”… i.e, the wealth ‘producers’ who are under assault in socialistic America and taxed more and more.

Meanwhile Joe Biden said about a proposed Obama jobs bill:

“The other thing I’ve heard from my friends who oppose this – this whole jobs bill and this – that this is just temporary. Well let me tell you, it’s not temporary when that 911 call comes in and a woman’s being raped if a cop shows up in time to prevent the rape, it’s not temporary to that woman. It’s not temporary to the guy whose store is being held up and a gun is being pointed to his head. If a cop shows up and he’s not killed, that’s not temporary to that store owner. Give me a break, temporary! I wish these guys that thought it was temporary, I wish they had some notion what it’s like to be on the other side of a gun or a 200 pound man standing over you telling you to submit. Folks, it matters. It matters!”

In  other words Biden is implying that unless we pay more in taxes and support yet another subsidized ‘jobs’ program that more women will be raped and more store clerks held  up.

This is reprehensible fearmongering and a lie. This is classic Democrat propaganda. There is plenty of money for cops. It is just being wasted by the liberals. Obama’s $800 billion ‘stimulus’ of 2009 disappeared magically into the pockets of his Democrat cronies, mostly to labor unions.

Meanwhile shopkeepers are being increasingly denied the right to use firearms to defend themselves by the same Democrats. This right is necessary because cops usually show up after a crime has been committed.

We will have a growing economy with jobs and public services for all when we stop gutting the taxpayer and the private-sector wealth “producers” and “givers” while lavishing money on the “takers” in a way that wastes our economy away dollar by dollar by dollar.

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