The 5 Little Words Every Politician Needs to Hear
The saying goes "if money were no object". These days, it seems like government is treating our tax money as if it were no object, that is something that wasn't coming from our paychecks, both present and future. Democrats spent years blasting the Bush administration for its deficit spending... but only because it was on the Iraq War. Even as they attacked the size of the deficit, they cried foul that not enough money was being spent on their pet social projects. Now that they're in charge and the economy's broken, they feel they have license to spend all they want. I get the Keynesian principle of deficit spending to jump-start an economy, but when the economic crisis is built on debt, what is running up more debt going to accomplish?
Of course, these people have their heroes, most notably that Nobel Prize-winning economist (*gag*) Paul Krugman of the New York Times. Krugman has said that not only is it right for the federal government to spend like drunken sailors (and as Reagan once said, that's an insult to drunken sailors), state governments should be doing the same. Failure to do so, says Krugman, would make state governors just like Herbert Hoover, who dared to balance a budget during the Depression with disastrous results. Not as disastrous as what FDR put us through for years afterward, but that's another debate for another time. The point is the name "Herbert Hoover" gets tossed around a lot these days and pinned to virtually anyone who tries to be a deficit hawk or to stand in the way of this outrageous spending.
And a few states are taking Krugman's advice, asking the federal government for hundreds of billions of dollars to fix their shortsightedness. I'm sorry, but it is NOT the job of the federal government to fix the problems of individual states; that's not exactly the language in the 10th Amendment of our Constitution, but that's how I choose to read it. They need to balance their budgets on their own.
New York is one of the states that has asked for federal help; we're looking at a $15 billion budget deficit for next year. Krugman might not be aware of this (after all, he only MAKES HIS LIVING in New York), but New York is required BY LAW to have a balanced budget. Yeah, yeah, whoever passed that law is a "Herbert Hoover", whatever. Anyway, Gov. Paterson has chosen to close this deficit with a variety of new taxes and fees. The one that has gotten the lion's share of the coverage is the so-called "obesity tax", where New Yorkers will now have to pay an extra sales tax on regular soda but NOT diet soda. However, there are also new taxes on haircuts, movie theatre tickets, and movie and iTunes downloads (pair that up with the end of RIAA lawsuits and you can expect illegal downloading in New York to skyrocket).
Now this has caused outrage among the populace, with state Republicans claiming that it will cost the average New York family an additional $4,000 next year. However, the alternative is just as bad. Assembly Democrats want that extra tax burden to be dropped on just the rich. Currently the New York state income tax is a flat tax; everyone pays the same rate (what a concept). Some in the Assembly think that's not "fair", so they want taxes hiked on either those who make $250,000 a year or $1 million a year. Their buddies in the unions (whose jobs would be affected if state spending was cut) filled our TV screens with commercials this Christmas season, telling us that if we think our Christmas isn't as merry as in past years, there's one thing we can do to make us feel better... call our legislators and tell them to soak the rich.
Of course, if they were to do this, rich New Yorkers would move to a state with lower income taxes, as they've been doing for years. It's no big secret that we are one of the most taxed states in the country; 22 of the 25 counties with the highest property tax rates in the country are in upstate New York. If you already know your federal income taxes are going up with Obama taking office, you need to go wherever your tax bite will be the smallest; that's just common sense. Interest groups have countered that if state income taxes are not raised, people will leave the state because hospitals and schools will be lousy. I counter back: if they DO raise taxes, people will leave the state, the hospitals and schools will STILL be lousy, and now you won't have any avenues for private investment to improve them!
Another solution Paterson and the Legislature devised has caused more howls of protest. The Indian Nations in New York state have been selling cigarettes tax-free for years; some have done so on reservation land, while others have bought land and tried to claim it as tax-free. The U.S. Supreme Court nixed the latter idea, and now the state has enacted a provision to force wholesalers who supply cigarettes to these shops on reservations to charge state taxes that aren't being collected when the stores sell cigarettes to non-Indians. The response was predictable; the Senecas and Oneidas are indignant over this infringement over their "sovereignty." One small problem with this. They want to be treated as separate nations from the United States; you know, like Canada. Well, when you go to Canada as a "non-Canadian", and you buy items there, you have to declare them when you come back over the border and if they're of any real worth, you have to (gasp!) PAY TAXES. Congratulations! We're treating you like any other foreign nation! Deal with it!
Which brings me to my advice for all of these people involved in trying to get us out of our economic woes through government intervention. It's about time all of these people in government, all of these tax-and-spend types, and all of these interest groups learn 5 simple words:
"Suck it up and deal."
That's it. Times are tough in this country. We the average Americans have to make do with less, and it's about damn time government does the same. It would be so nice to hear the Republicans say to President-elect Obama and the Democrats in Congress, "Yeah, that's wonderful that you want a $1 trillion stimulus package. Last I checked, we have a $10 trillion-plus national debt and a $1 trillion deficit this year. We cannot spend another penny. Period. Suck it up and deal." It would also be nice if Washington then said it to all the governors asking for a handout. Then Gov. Paterson, having learned these magical words, could say it to the Assembly Democrats, the civil service unions, and the Indians.
I'm not saying that everything in this country would then be hunky-dory. After all, we are in a bad recession, and we need to do something to get us out of it. But what gets lost in the mix is that these things are cyclical, and even as we speak, private investors and businesses are finding ways to succeed through new ideas and better business plans. It will take time. I realize time is not expedient when you're a politician who is up for re-election every two years, but patience is a virtue and one that politicians apparently are not good at. It's time to learn. If you don't like it, suck it up and deal.
Of course, these people have their heroes, most notably that Nobel Prize-winning economist (*gag*) Paul Krugman of the New York Times. Krugman has said that not only is it right for the federal government to spend like drunken sailors (and as Reagan once said, that's an insult to drunken sailors), state governments should be doing the same. Failure to do so, says Krugman, would make state governors just like Herbert Hoover, who dared to balance a budget during the Depression with disastrous results. Not as disastrous as what FDR put us through for years afterward, but that's another debate for another time. The point is the name "Herbert Hoover" gets tossed around a lot these days and pinned to virtually anyone who tries to be a deficit hawk or to stand in the way of this outrageous spending.
And a few states are taking Krugman's advice, asking the federal government for hundreds of billions of dollars to fix their shortsightedness. I'm sorry, but it is NOT the job of the federal government to fix the problems of individual states; that's not exactly the language in the 10th Amendment of our Constitution, but that's how I choose to read it. They need to balance their budgets on their own.
New York is one of the states that has asked for federal help; we're looking at a $15 billion budget deficit for next year. Krugman might not be aware of this (after all, he only MAKES HIS LIVING in New York), but New York is required BY LAW to have a balanced budget. Yeah, yeah, whoever passed that law is a "Herbert Hoover", whatever. Anyway, Gov. Paterson has chosen to close this deficit with a variety of new taxes and fees. The one that has gotten the lion's share of the coverage is the so-called "obesity tax", where New Yorkers will now have to pay an extra sales tax on regular soda but NOT diet soda. However, there are also new taxes on haircuts, movie theatre tickets, and movie and iTunes downloads (pair that up with the end of RIAA lawsuits and you can expect illegal downloading in New York to skyrocket).
Now this has caused outrage among the populace, with state Republicans claiming that it will cost the average New York family an additional $4,000 next year. However, the alternative is just as bad. Assembly Democrats want that extra tax burden to be dropped on just the rich. Currently the New York state income tax is a flat tax; everyone pays the same rate (what a concept). Some in the Assembly think that's not "fair", so they want taxes hiked on either those who make $250,000 a year or $1 million a year. Their buddies in the unions (whose jobs would be affected if state spending was cut) filled our TV screens with commercials this Christmas season, telling us that if we think our Christmas isn't as merry as in past years, there's one thing we can do to make us feel better... call our legislators and tell them to soak the rich.
Of course, if they were to do this, rich New Yorkers would move to a state with lower income taxes, as they've been doing for years. It's no big secret that we are one of the most taxed states in the country; 22 of the 25 counties with the highest property tax rates in the country are in upstate New York. If you already know your federal income taxes are going up with Obama taking office, you need to go wherever your tax bite will be the smallest; that's just common sense. Interest groups have countered that if state income taxes are not raised, people will leave the state because hospitals and schools will be lousy. I counter back: if they DO raise taxes, people will leave the state, the hospitals and schools will STILL be lousy, and now you won't have any avenues for private investment to improve them!
Another solution Paterson and the Legislature devised has caused more howls of protest. The Indian Nations in New York state have been selling cigarettes tax-free for years; some have done so on reservation land, while others have bought land and tried to claim it as tax-free. The U.S. Supreme Court nixed the latter idea, and now the state has enacted a provision to force wholesalers who supply cigarettes to these shops on reservations to charge state taxes that aren't being collected when the stores sell cigarettes to non-Indians. The response was predictable; the Senecas and Oneidas are indignant over this infringement over their "sovereignty." One small problem with this. They want to be treated as separate nations from the United States; you know, like Canada. Well, when you go to Canada as a "non-Canadian", and you buy items there, you have to declare them when you come back over the border and if they're of any real worth, you have to (gasp!) PAY TAXES. Congratulations! We're treating you like any other foreign nation! Deal with it!
Which brings me to my advice for all of these people involved in trying to get us out of our economic woes through government intervention. It's about time all of these people in government, all of these tax-and-spend types, and all of these interest groups learn 5 simple words:
"Suck it up and deal."
That's it. Times are tough in this country. We the average Americans have to make do with less, and it's about damn time government does the same. It would be so nice to hear the Republicans say to President-elect Obama and the Democrats in Congress, "Yeah, that's wonderful that you want a $1 trillion stimulus package. Last I checked, we have a $10 trillion-plus national debt and a $1 trillion deficit this year. We cannot spend another penny. Period. Suck it up and deal." It would also be nice if Washington then said it to all the governors asking for a handout. Then Gov. Paterson, having learned these magical words, could say it to the Assembly Democrats, the civil service unions, and the Indians.
I'm not saying that everything in this country would then be hunky-dory. After all, we are in a bad recession, and we need to do something to get us out of it. But what gets lost in the mix is that these things are cyclical, and even as we speak, private investors and businesses are finding ways to succeed through new ideas and better business plans. It will take time. I realize time is not expedient when you're a politician who is up for re-election every two years, but patience is a virtue and one that politicians apparently are not good at. It's time to learn. If you don't like it, suck it up and deal.
posted by Dave | 7:31 PM
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