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                      Tax cuts for 95% + alchemy = 5% pay everything
                            
                              
 by Fred Schnaubelt

 

 

Ninety-five percent of workers (voters) will get a tax cut, says Barack Obama, and John McCain promises even greater cuts. This bit of alchemy is going to be interesting to see unfold since the government has committed to spending $700 billion on a bailout plus another $600 billion on incidentals.  Isn't it amazing: Both political parties trying to out-do each other about how much they will do for us -- with our own money? I'll betcha whoever is president, taxes will go up.

 

Does anyone really believe you can cut taxes for 95 percent of the people, spend over a trillion dollars on a rescue plan and increase health care coverage for millions merely by having the "richest" 5 percent of taxpayers pay for everything?

 

It's hard not to get a side ache laughing. The Wall Street Journal reported Oct. 29 that Americans, according to Democrats, increasingly believe that higher taxes and more government are the solution to more jobs and a stronger economy. Republicans, of course, will go along to get along, to end gridlock in Washington. The Founding Fathers actually loved gridlock, only they called it "Checks and Balances."

 

Have you ever wondered why some people so easily believe their neighbors can spend money more wisely than themselves? After all, every politician and government bureaucrat is someone's neighbor, and just by going to work for the government does not suddenly make them omniscient, wise and selfless.

 

First, government does not have any money of its own until it takes from you -- the private sector.

 

Second, for every job the government creates it destroys a job, since the money the government takes in taxes is not available to pay for a privately created job.

 

Third, jobs and wages are determined by consumers through their buying or not buying what is being produced. The greater the demand for products and services, the higher the profits and higher the salaries of workers, as wages are bid up to lure workers away from less desirable jobs in the eyes of consumers.

 

Fourth, private producers/businesses provide what consumers want most urgently and are willing to pay for. Government provides what will get the most votes and campaign contributions.

 

Let's compare the two. Businesses tend to provide food, shelter, clothing and comfort. Imagine the great private entrepreneurs, from John D. Rockefeller and Andrew Carnegie to Bill Gates and Steve Jobs plus the numerous farmers, homebuilders and clothing manufacturers, etc. We all know what the private sector provides by what we buy every day and pay relative to quality.

 

Now imagine today's great political entrepreneurs, Edward Kennedy, Robert Byrd or Ted Stevens plus the Congress. To know what government provides you with your tax dollars, just for fun, we go to an insider -- the late Sen. William Proxmire, who put it in writing. 

 

Government spent $500,000 to find out why rats, monkeys and human beings clench their teeth. (Taxpayers, I could tell researchers, clench their teeth when reading how government spends their money).

 

The National Science Foundation spent $84,000 to study why people fall in love. (Apparently, the answer is a state secret). Your tax dollar at work!

 

One research scientist was paid $97,000 to interview 21 prostitutes in Peru over a period of one year. (Boy! What a dynamite foreign aid program).

 

The government spent $46,000 to determine how long it takes to cook a breakfast. (Believe it or not, it takes 838 "measurement units" to fry two eggs in a skillet).

 

The National Science Foundation spent $46,100 to find out if bikini-clad women can reduce the honking of frustrated drivers during traffic jams. (They can, but whistling increases).

 

This led to a more serious $222,000 study by the Federal Highway Administration, to determine if drivers felt that large trucks contribute to traffic congestions, block vision or go too slowly up hills.

 

My favorite local examples are $2 million spent to save two checkerspot butterflies in the Highway 125 right-of-way and $9 million to relocate eight pairs of least Bell's Vireo in the Highway 52 right-of-way ($9 million for new birdhouses not even in La Jolla while the butterflies died, I'm told, from being fondled?). There are tens of thousands of similar programs and still some people have blind faith that government can spend their money better than they can.

 

Why do so many people look to government to solve their problems? In "The Grand Inquisitor," Fyodor Dostoevsky writes that nothing is more frightening and difficult to bear than freedom (to be responsible for one's self, for providing one's own food, clothing, shelter and well-being). The very attractiveness of some countries in Europe, Cuba and North Korea, perhaps Venezuela, is that their governments promise to care for their citizens if only they will give up their freedom, self-reliance and self-respect.

                                          ______________________________________________________________________

                                       Schnaubelt, president of Citizens for Private Property Rights, has been a commercial real estate broker
                                       for 39 years and was a San Diego City Councilman from 1977-81.

                                       This article appeared in the San Diego Daily Transcript on Wed., Oct. 31, 2008.

 

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