This week’s rant (Value Line Observer – Jan 29 2010) is something I”ve been thinking about for a while. I see all the arguing going on in Congress about what to spend money on — what’s worthy of the many billions of dollars that things seem to cost these days when the government is involved. Of course, there is talk about how much to spend, but mostly I hear talk about what to buy. When I hear these discussions, I am reminded of the talk with my kids as we stand in front of the candy store. If I just let them run in, they will find everything great. If I am asked to referee between the Twizzlers and the Raisinettes, I am a bad parent if I just don’t get both. “Don’t you love me?” my greedy child will say to me. The way to prevent this is to set a limit in advance. This limit is based somewhat on how much money I actually have. If not in my bank account, then at least in my pocket. This completely solves the problem.
Why shouldn’t we treat government the same way. Let’s first set the amount to spend before we talk about what to buy. Doesn’t this make some kind of sense? Set the allowance FIRST. Then talk about what to spend it on. We should do this by voting on the tax rate. This tax rate would apply to everyone. A regressive tax code puts incentives on our most productive workers to work LESS. This is crazy. Our most successful business reward sales people with an increasing commission as they hit higher production levels, NOT LESS!! Why is our government taking wealth building incentive ideas from the worst performing organizations instead of the best!! But I digress, a regressive tax is counter productive to the goal of building wealth for all. If we vote on the tax rate, we will set the allowance the government can spend. This tax rate should apply to all ages, all races, all incomes, all wealth. It should take the equal opportunity provided to us as U.S. Citizens, and tax the fruits of the equal opportunity equally.
We should VOTE THE TAX RATE.
Val Hughes
www.thevalueguys.com
1-29-2010
