tax scam

VAT of lies

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“Just one more tax on the middle class and poor. One more, that’s it. I promise.”

Lied to enough already?

House Speaker Nancy Pelosi (D-CA) continued her regularly scheduled display of dishonesty during a recent discussion of the value-added tax.

The Hill reports:
A new value added tax (VAT) is “on the table” to help the U.S. address is fiscal liabilities, House Speaker Nancy Pelosi (D-Calif.) said Monday night.

Pelosi, appearing on PBS’s “The Charlie Rose Show” asserted that “it’s fair to look at” the VAT as part of an overhaul of the nation’s tax code.

“I would say put everything on the table and subject it to the scrutiny that it deserves,” Pelosi told Rose when asked if the value-added tax has any appeal to her. (snip)

Pelosi said that any new taxes would come after the Congress finishes the healthcare debate currently consuming most lawmakers’ times, and that it may come as part of a larger overhaul to the tax code.

The speaker also emphasized that any reworking of the tax code would not result in an increase in taxes on middle-class Americans. (emphasis added)

Madam Speaker, if the reworking of the tax code calls for the implementation of a value-added tax, then contrary to your assertion, that would be an increase in taxes on middle-class Americans. The VAT is not an income tax, but a consumption tax that would be enforced on top of the income tax. Unlike the wealthy, who can redirect a portion of their money to other means in lieu of consumption, the poor and middle-class have to consume. As a result, the VAT will hit the people liberals claim they don’t want to tax the hardest. But please, don’t let the truth get in the way of facts. Just continue the charade of lying to us about the ramifications of liberal tax proposals. It’s more important that you continue to prop up the president’s phony campaign pledge of no tax increases on individuals that earn less than $250,000 a year. Never mind that ship sailed in early February when the president signed an expansion of the State Children’s Health Insurance Program (S-CHIP) into law and buried within it was an increase on the tobacco tax–the largest tax increase in U.S. history.

Exit question: Are there any forms of taxation they oppose?
{more – J.C. Arenas}

If we just had a de-value added tax put on Pelosi and her ilk in Congress, one that took away from them their salary, perks and assets for every rape on the American people and the world, Nancy would soon be homeless. Along with most of the rest of the government thieves and warmongers.

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Ron Paul on Government Regulation Of Tobacco

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Organic Tobacco – Middle TN 6-14-09

Growing your own tobacco is basically the only way to beat the taxes and regulations. This trend will increase over time. With federal taxes on loose tobacco at around $24 a pound and store prices of $44 to well over $100 a pound, it makes sense. It’s legal in all states to grow for personal use.

Taxing Us to Death…Again

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How many people still believe Obama would not lie and break a pledge to not increase taxes. Remind yourself…if he and congress lie about anything, wouldn’t they lie about everything.


“I can make a firm pledge,” [Obama] said in Dover, N.H., on Sept. 12. “Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”

He repeatedly vowed “you will not see any of your taxes increase one single dime.”

https://kennyssideshow.files.wordpress.com/2009/05/592d7-beer_money.jpg

On the heels of the major tobacco tax, now there may be another assault on the working class.

Drunk on power and dazed by ambition, members of Congress have stumbled upon a novel way to keep their spending binge rolling — and leave American taxpayers with the hangover.

Under a Senate proposal, Congress would raise the federal excise tax on beer by 145 percent to more than $3 a case.

Uncle Sam also would snatch an additional $7 on a case of wine — a staggering increase of 233 percent and an additional 20 percent on hard liquor sales.

“Buzz-kill doesn’t even begin to describe this invasion,” said a GOP congressional aide.

Not content just sticking it to alcohol drinkers, the lawmakers also proposed slapping new taxes on soda.

Luckily, no one making under $250,000 drinks beer, soda, wine or hard liquor. Either that, or Barack Obama is a liar.

While we have had our attention diverted through all kinds of media propaganda, ‘terrorists’ in NY, etc. etc., the cap and trade bill has passed through the senate committee. No tax increases for the poor and middle class huh. Liars.

From Dianna Cotter…….

Hold onto your hats folks, here it comes…

In a revealing editorial today, the Washington Examiner (not related to Examiner.com) revealed a huge unemployment package buried in the Waxman-Markley Cap and trade energy bill.

At first glance this just seems like more of the usual Washington shuck-n-jive. However, when one considers the implications of this, it becomes apparent that the writers of the cap and trade bill are very clearly aware that this bill will cost thousands of jobs. So much so that unemployment benefits for those losing their jobs because of it will go for THREE YEARS, 156 weeks. Obviously they are not expecting these hapless folks to find new work easily! The Washington examiner reports that these victims of Washington DC legislation and Congress will get 80% of their insurance premiums paid, a 1500$ relocation allowance, and job search expenses of up to 1500$.

If this is an energy bill… which by the way, is being sold as legislation that will create higher paying “Green” jobs, in higher numbers than those lost, then what are unemployment benefits for up to three years doing in it?

Note to all of those who are supporting this bill, both Nationally and locally here in Oregon, be prepared for your energy costs to go up by a minimum of 50%, and by some estimates up to 90%. Let’s put some numbers with that. Say your average electric bill for a year is 100$ a month. That’s 1200$ a year. Your bill will go up to 150$ a month, for a total of 1800$ a year with just a 50% increase. With a 90% increase that number will be 2280$, or 190$ a month. But that’s not all; the cost of your Natural gas will go up similarly. So will the grocery store’s electric bill, 50% higher refrigeration costs = 50% higher cost passed on to you the consumer. Your Hairdresser’s electricity cost will go up, and so will the cost of your shampoo blow-dry, and Color. Every single industry that uses power of any sort will go up, and your cost of living will rise exponentially.

All this for less that 2 tenths of a degree cooling over the next century, which will absolutely crack up the Chinese and Indians who are praying (if the communist government of China would admit to praying) that this legislation passes! Why?

Because it will absolutely kill the productive engine that is the lifeblood of the United States of America, the economic engine of the world! Of course they want it to pass, it will make them the world’s only superpower. Throw in the fact they own a huge swath of our national debt, and you should now be seeing a very dark black cloud rising over our future.

It should be stressed here, that even a COMMUNIST Government will not institute legislation that will destroy its economy to the extent that this bill will.

This is no doom and gloom prediction, clearly the writers of the bill know it too, or there would not be three years worth of unemployment benefits in it. The section we are speaking of it on page 781 of the 946 page bill. “Title IV, Subtitle B, Part2, Section 426 of the American Clean Energy and Security Act of 2009” Ah such innocuous and lovely sounding poison they come up with now a days!

Would you like that with a side of Arsenic? Hemlock perhaps?

Exactly where is all of the money going to come from to pay for all those unemployment benefits? The Rich? They will leave the country and take their money with them, just as they did in Cuba so long ago. Big Business? Oh no, they will leave too if they can, or they will fold and be Nationalized as well as GM and 2/3rds of the Auto industry. The Small business owner? They will go out of business. The only ones left will be the little guys, and that means all the rest of us. Can you smell the tax hike coming? There is no fiscal way this can be done without raising taxes to pay for the huge numbers of unemployed that are expected to need this craftily buried unemployment package. Assuming you aren’t on it that is. But don’t expect that to protect you, you still have to pay taxes on your unemployment benefits. A delicious irony no?

Forget Electric cars the only truly green alternative, they will be too darned expensive to charge. The irony of this is just too precious not to comment on…. The only possible alternative to liquid fueled cars will be legislated right out of existence before they can even get produced! Paradox of all green paradoxes! I think the space time continuum just wrinkled a bit… the only truly green car… the contradiction is just too perfect.

Has Washington lost its collective mind? Who is running this place and why are they trying to kill us and our livelihoods? Why are they deliberately trying to take food out of the mouths of our kids? That’s what they are doing. For 2 tenths of a degree? Certainly as China and India make up for our non-productivity, and with the knowlage that they indeed will not institute legislation as stupid and financially unsound as this, it is pointless. They have publically stated they will not do such damage to their economies. Knowing this… that 2 tenths of 1 degree seems likely to get swallowed up by an increase in Chinese and Indian productivity. Can you think of anything more pointless than this? Spitting into the wind perhaps?

Folks the insanity being considered in Washington DC may well make it impossible to live in the United States and live a successful prosperous life. Mexicans won’t be coming here anymore; it will be Americans going to Mexico looking for jobs.

That’s no joke.

The Washington Examiner quotes Ben Lieberman of the Heritage Foundation: “The fact that generous unemployment benefits are buried in the bill means that “green jobs are bunk,”” The Foundation found that “Waxman-Markey is the largest, most intrusive energy tax increase in American history. It would reduce the nation’s GDP by 7.4 Trillion, raise electricity rates 90 percent and gasoline prices 74%.”

So, how do you like that “Hope and Change” now? This what you were expecting and voted for? We were warned by Obama himself, he said he was going to do it in the campaign, kill coal… this is your government at work.
Unless you stop it by contacting your congressperson now.

Otherwise get ready for the worst; you might want to buy a lot of extra blankets while the prices are still low. {source}

There are plenty of ways to help the environment but none that the Obama administration and Congress will consider if it doesn’t benefit big business.

There are also plenty of ways to eliminate the need for any more taxes.

Shut down most of the federal government.

End the wars and bring our troops home.

Eliminate foreign aid to terrorist states such as Israel.

Abolish the Federal Reserve.

I’m sure there are many more ways you can think of to end wasted federal spending.

But consolidating power and turning America into a third world country depends on taxing us to death.

The liars are trying to see to it and all in the guise of saving the planet or saving us from ourselves.

_____________

also see: Classwar in America, the Ongoing Assault

The biggest tax increases on the poor ever?

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Globalist shills smile as their war on the middle class and poor marches on.

“I can make a firm pledge,” Obama said in Dover, N.H., on Sept. 12. “Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”

He repeatedly vowed “you will not see any of your taxes increase one single dime.”

“No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised,” Joe Biden said, “whether it’s their capital gains tax, their income tax, investment tax, any tax.”

Having already broken that promise, it’s on to the next scheme for bleeding the poor and the middle class.

That scheme would be cap and trade.

Let’s get something straight. Air pollution is never a good thing. I remember first visiting Birmingham, AL in the 60s’s. It was a smokey polluted city the likes of which I had never seen and didn’t want to go back there. Some will remember Los Angeles around that same time. Alerts were common warning parents not to let their children play outside.

The improvement today is dramatic compared to then and reduction of tailpipe emissions was extremely helpful. Particulates and carbon monoxide was the problem, not CO2. Some would also include the destruction of the US manufacturing base as contributing to cleaner air. Again it was mostly particulates causing the problems. More elimination of manufacturing will be the result of carbon taxes with no noticeable increase in air quality. Where will the jobs come from?

How will people pay for the increased utility bills that will be coming?

A conversation with a local electric company worker last week confirmed what we had heard. More houses in the TVA empire had their electricity cut off this winter than ever before in history.
Carbon taxes will put the strain on on working families, the aged and the poor beyond what we can even imagine.

Barack Obama: “Under my plan…electricity rates would necessarily skyrocket”

The numbers on the scheme vary but here’s one analysis.

In dealing with the perceived problem of CO2 emissions, Congress is considering a cap-and-trade system. A cap-and-trade system called the Climate Security Act that was scuttled last year is on the agenda again this year.

The rationale behind cap-and-trade is that high C02 emissions will cause increasingly severe global warming and we thus should force reductions in the use of the fossil fuels that generate most of the C02 emissions.

Cap-and-trade is basically carbon rationing. Government would decide how much carbon dioxide we as a country would emit in a given year (the cap) and print a number of ration cards. These would be auctioned off and allow companies to buy and sell them (the “trade” part). The idea is the cap would force the U.S. economy to consume a lot less fossil fuel.

There are huge problems with this approach:

The Congressional Budget Office said “Most of the cost of meeting a cap on CO2 emissions would be borne by consumers, who would face persistently higher prices for products such as electricity and gasoline.” The Science Applications International Corp. estimates residential rates would rise between 28 percent and 33 percent by 2020 and between 101 percent and 129 percent by 2030.

In addition, the cap-and-trade bill would raise gas prices at the pump between 41 cents and $1 per gallon by 2030.

The Federal Energy Information Administration said the bill would result in a 9½ percent drop in manufacturing output down the road.

The Obama administration says it would cost ratepayers $650 billion over a 10-year period, but many believe the real number would be between $1 trillion and $2 trillion.

According to the George C. Marshall Institute, the administration’s cap-and-trade plan would create a 3 percent reduction of our gross domestic product in 2015 and a 10 percent reduction in 2050.

Putting a price on CO2 is like a regressive tax because poor and middle-income folks spend proportionately more of their money on such necessities as gasoline, groceries and home heating.

A really great inequity would fall on those parts of the United States that rely most heavily on coal to generate power — the Midwest, South and Plains. Missouri, which gets 81 percent of its electricity from coal-fired plants, would be one of the hardest-hit states.

An additional proposal tied to cap-and-trade is the “renewable portfolio standard,” which would mandate that utilities generate a percentage of their electricity from renewable resources such as wind or solar. Nuclear power does not qualify. The law would also provide subsidies for wind and solar power. Government shouldn’t really be in the business of picking winning and losing technologies. Price signals are always better than planned economies.

Another major problem with cap-and-trade is simple economics: China and India will never endanger their own economic growth and the opportunity to lift their populations out of poverty merely to placate Americans. So investments and jobs would go to nations with lower costs because they do not have climate regimes. We would become much less competitive internationally.

All this taxation, cost increases and reduction of individual liberty would be in pursuit of something that might or might not be a problem. Oh, and by the way, it would reduce temperatures a projected 7/10 of one degree by 2070. {more}

If dual citizen Rahm Emanuel is pushing for carbon taxes, you can bet it’s a scam.

An energy bill will land on President Obama’s desk “at the end of this first year of Congress,” White House Chief of Staff Rahm Emanuel predicted Sunday.

“We’re going to alter how we deal with our energy policy,” Emanuel said on ABC’s “This Week.” “And what I think is going to happen is that Congress will deal with this part of the energy policy; they’ll deal with the resource investments into alternative energy. They’ll also deal with the way we bring more efficiency into the system. …I do know this. At the end of this first year of Congress, there will be an energy bill on the president’s desk.”

A House Energy and Commerce subcommittee begins hearings this week on a draft bill addressing climate-change legislation. Full committee Chairman Henry A. Waxman , D-Calif., has said he expects to complete work on a measure, which will probably include a controversial cap-and-trade system to regulate emissions, before Congress leaves for its next break around Memorial Day.

Lawmakers are under heightened pressure to address the issue after the EPA issued a finding that could lead to federal regulation of greenhouse gas emissions. The agency issued a “proposed endangerment finding” on April 17 that says carbon dioxide and five other gases threaten public health by triggering climate change. The document also says emissions from motor vehicles are contributors to global warming.

The EPA finding was a response to a 2007 Supreme Court decision that found greenhouse gases are pollutants and directed the agency to determine if they threaten the public. The agency will now consider regulations for motor vehicles and possibly electric power plants under the Clean Air Act (PL 101-549).

The draft House bill would limit greenhouse gas emissions, but also pre-empt the EPA from regulating them under several existing standards that apply to conventional pollutants, such as smog and soot.

“The goals are having an energy policy in which America is independent of its tie to foreign oil and having a policy in which America basically has an energy policy that frees itself from exporting $700 billion of wealth to the Mideast,” Emanuel said. “Now, we have to make the decision, which is what the president’s always said, it is better, on an issue of this size and magnitude, and in an effect on the economy, that Congress and the White House come up with a set of policies that deal with greenhouse gas emissions and our energy policy.”

When asked about resistance to the cap-and-trade proposal — those opposed have argued it will lead to a tax increase — Emanuel said, “When you have something of this magnitude, there’s going to be people that raise objections, because it’s a big change. Our goal is to get that done. We will see.

“You’re asking me right before the legislative process starts to make that prediction. I do think this, that even those who object to particulars know that we have to deal with this part of our energy policy and that the challenge now is, rather than to criticize and rather than say no, rather than to say never, is to provide ideas. And that has yet to happen from the other side.” {more}

Huffington Press has its own page for climate change. Fear remains the number 1 tactic for stealing your money whether it is global warming, the ‘war on terror,’ ‘the war on drugs,’ collapse of the economy unless we bailout the bankers or any number of other lying agendas.

When you follow the money in a carbon tax world, it always leads to the globalist central bankers, including our very own Federal Reserve. No surprise there.

Here’s one person’s take on the banks and carbon taxes.

Obama does not work for the people, nor does he answer to the people, he works solely for, and answers only to the Wall Street elite and the international bankers. Their agenda and Barack’s is to:

Bring the United States under the complete regulatory control of a private offshore super bank, known as the Bank of the World.

More then a hundred new taxes are now being planned under the umbrella of curbing “Greenhouse gases”. The new taxes will be paid directly to this new bank consortium. At the producer level taxes will be paid on farm animals’ “farts”. There will be taxes on all forms of meat, such as beef, pork, lamb, etc., on the consumer level.. All cars are to be fitted with satellite tracking boxes that will tax driving by the mile, and an added tax will be added to all fossil fuels including motor oil and natural gas. All plastic products will have a carbon tax added. Outdoor space heaters and fire places will be taxed. All electricity produced by coal powered plants will be taxed. Under the Cap and Trade system, citizens will be forced to pay taxes on thousands of products; there will be taxes on light bulbs, water and garbage collection, taxes on air, train, bus, ship travel, and medicine, steel production, mining, clothing, laundry, asphalt, are just a few of the new taxes to be levied.

The idea that the planet is getting warmer and that human activity is some how responsible is a pseudo scientific fraud, it is a huge lie.

Global warming caused by human activity? The Obama administration’s answer to this false crap is carbon tax plus cap-and-trade, according to the wishes of Al Gore, Prince Charles and basically the entire world banking community. What they are trying to do is perpetuate the current system where the bankers rule the world and the rest of us get the crumbs from the table.

If you put on cap-and-trade, and a global warming carbon tax, what you will end up doing is destroy human society; it will cause genocide on a global scale. The deaths will be measured in the hundreds of millions, perhaps in the billions. The idea of global warming will mean NO development in Africa, No development for the poorest parts of Asia, and no world economic recovery of any kind, ever. Therefore it is extremely important to expose the fraud of global warming. {more}

The republicans will give lip service to fighting the carbon taxes. The democrats will be mostly for it while whining that it should be a bi-partisan issue. The two party system will once again fail us and the bankers and large corporations will win. Climate change will continue as it always has. Centralization of energy supplies will not change.

War and the actions of the military/industrial complex war machine are rarely mentioned as a source of world pollution. The pentagon is our biggest polluter.
Israel is ratcheting up the rhetoric against Iran…What would be the timetable for Israel strike on Iran.? Increasing the use of depleted uranium armaments and possibly nuclear weapons would be an environmental disaster the likes of which man made CO2 cannot compete with.
Maybe if we stopped the wars and potential wars that are only for the profit of the few, ended our occupations, closed overseas military bases and brought our troops home we would have the money to use towards cleaning up real environmental problems without adding another scam tax.

The beat, or the beating of the middle class and poor, goes on. Paying up to the piper’s tune.

I breathe, therefore I am a killer.

The taxes have gone too far

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https://i0.wp.com/www.sfntc.com/Portals/0/images/OrganicField.jpg Organic tobacco field

Of course smoking is hazardous to your health. We won’t argue. For all the lawsuits filed and payments by cigarette makers paid to the states, I’ve never met a single person who didn’t know this.

But some of us like to partake of this age old tradition and the government doesn’t have the right to tell us what to do. Well…no right but they do it anyway.

I’ve been rolling my own for years, have beat the taxes and didn’t have to put up with the 599 additives ‘approved’ by the government for R.J. Reynolds and the rest to use in their product.

Well, no more. I knew the taxes on production cigarettes was going up on April 1st but until today I thought the roll-your-own product was safe from the long arm of the tax law.

Was I wrong. A feature on What Really HappenedTax Hike has smokers fuming – blew me away in a cloud of smoke. A 2,400 percent increase in the tax on loose tobacco. It’s the biggest one time increase on anything I have ever heard of. Once again it’s tax the poor to feed the criminal government. I sort of doubt that any of this newly generated money will go to health care for the unlucky ones who have developed smoking problems. It probably will go to the war machine for new and improved ways to kill quickly instead of the slow way tobacco does.

I’m going to give a plug to a good company, Natural American Spirit, one of the few who produces organic and additive free tobacco. With the money crunch they have been doing well. I heard from a dealer that they were having trouble meeting demand. Things may slow up now for them. It looks like the tax increase will be about $8 per 5.29 oz. can.

These ‘sin’ taxes will never end until we do something to stop them. Great Britain appears to be going to increase taxes on beer and will put a lot of pubs out of business. Alcohol tax increases will be next on the taxers agenda here in the US. There are moonshiners still around in my area and as taxes increase so will they.

Back to smoking.
Quit, pay the price or…….

Grow your own. I’m thinking about doing this.

I grew up working in the tobacco fields and barns so I know a little about it.

The Seedman gives an short overview on how to do it. Seed, organic and non-organic can be obtained through several sources. A search will get you all of the information you need.

Now all of this grow your own stuff may sound good but laws are being passed faster than most of us can keep up with them. If some like HR 875 get passed, the garden nazis may be roaming our backyards.

They may be checking to see if we used any of that bad manure on our crops and asking to see the pesticide poison required for use to keep our food ‘safe.’

And if they found a few tobacco plants in the garden, even if legal, they might say we were contaminating the food crops and have to destroy everything.

I shouldn’t be surprised at anything our ‘guberment’ does. They let the criminal pharmaceutical industry, the fast food joints and the factory farms/animal holocaust camps poison the population but smoke a cig…or a joint…

You gotta’ pay the price son.

SURGEON GENERAL’S WARNING: Reading, writing or talking about the criminal activities of the US government may be Hazardous to Your Health

What’s patriotic about paying taxes?

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Thursday, September 18, 2008

J.D. Tuccille

Handing your hard-earned money to some organized-crime syndicate called “the government” is patriotic? Really?

OK, here’s a clue: patriotism means “devotion to one’s country.” Note, that says “country,” not “government.” They’re not the same thing. A country can survive the collapse of a government, the creation of a new government, or (we can hope) the total abolition of government.

Of course, some people who have never held a real job — a non-parasitic one outside the government — might not understand that. Oh, that’s right, Biden has worked his entire adult life in one government job or another, hasn’t he?

Hmmm. Patriotism actually might actually call for starving a parasite that’s feeding off the country, don’t you think? You might do that by … not paying taxes …

posted by J.D. Tuccille
Source: http://www.tuccille.com/blog/2008/09/whats-patriotic-about-paying-taxes.html

"Less For Our Labor" Day?

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Daily Article by

Mises Institute

Every Labor Day, the U.S. is carpet-bombed with politicians’ rhetoric extolling working Americans’ very real and substantial contributions to our society, followed by words of devotion to their interests. From their speeches, you would think that the government was doing wonderful things to help workers.

But, in fact, with the average American spending more to fund government than to buy food, clothing, and shelter combined, the greatest impact the government has on those of us for whom it cares so much is through the huge gap it creates between the value of our productive contribution to others in the workplace and what we actually take home.

In other words, the government’s primary contribution to our lives is to make us substantially underpaid for the productive work we do, judged by the line labeled “net” on our pay stubs. But because our net is all that most of us really look at any more, we tend to blame our employers rather than the government for that underpayment

If you are one of those whose net pay makes you feel underappreciated by your employer on “your” holiday, remember that what your employer pays for your services is far greater than what you net. The grasping hand of the government that is “honoring” you is primarily to blame for the difference between what you are “worth” to your employer in productivity and what makes it to your bank account.

The most obvious difference between your gross and net pay is income taxes. But if you are like most, you are now so accustomed to income tax withholdings–which you can do little about but change your claimed exemptions at the beginning of the year–that you don’t even look at the amount withheld from your pay any more. Labor Day is a good time to take another look at how much of your compensation goes directly from your employer to the IRS, rather than to you.

Social Security and Medicare taxes, which are greater than income taxes for a substantial majority of Americans, also create a huge gap between workers’ compensation and their net pay. Some do not even know that 7.65 percent of their pay goes toward Social Security and Medicare taxes. Those who do notice often say “I was robbed” as they get their paycheck (remember what you or your children said upon receipt of that first “real” check, if you have forgotten).

But even then, they recognize only half of the tax cost, because employers must also “contribute” an equal amount on your behalf, an amount that really comes out of your pocket. Employers compare their estimate of your productive contribution with the cost of your entire compensation package.

The result is that, since employers know they must bear this 7.65-percent tax over and above the wages they pay, they offer less in wages. But employers, rather than the government, get the blame for the resulting underpayment for our skills.

Other taxes supposedly borne by employers are also borne by employees in reduced net pay (or higher prices for the products they buy, which is analytically equivalent), as well. Unemployment taxes and “workman’s comp” payments may be officially paid by your employer, but workers actually bear any resulting burdens employers can anticipate from hiring them. Sales and excise taxes also lower the net value to purchasers of the goods and services workers produce.

Similarly, corporate taxes impose a burden on workers, either by reducing their pay or increasing prices they must pay out of their earnings. In each of these cases, you may blame your employer for the lower real wages that result, but the government actually gets the money, along with accolades from taxpayers who think they are less burdened (instead of indirectly burdened) as a result.

Further, because all of these taxes reduce saving and investment, they also reduce the accumulation of capital over time below what it would have been otherwise. With fewer tools, workers are less productive, and they receive less income as a result.

Benefits which the government mandates employers to provide their workers also really come out of workers’ pockets, because that cost is part of their total compensation package, which must be covered by the value of worker output to their employer. Similarly, the productivity-reducing costs of complying with regulatory burdens (a “tax” of hundreds of billion dollars a year) reduce take home pay.

Labor Day is intended to recognize and honor the contributions of the working men and women of America, and to give politicians a chance to make speeches to show how they represent the interests of every worker. But rather than a holiday that mainly reminds me how much the government makes me underpaid with what they squeeze out of what I earn, I would feel far more appreciated if the government just took less instead.


Gary M. Galles is a professor of economics at Pepperdine University. Send him MAIL, and see his Mises.org Articles Archive.

Source: http://mises.org/story/1038

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