Milestones
By Miles H. Barber

Governments will almost always find a way to spend just a little more than the revenues generated by taxes and fees.

In the event of a surge in the economy and excess revenue is realized, these funds never find their way back to those who paid the excess.

In the event of an economic downturn, governments borrow against hoped for future revenues. This thinking is usually followed by tax increases.

Over the past four years, the unplanned and unexpected financial collapse has revealed the pathetic spending policies of our governments. It has also given taxpayers their first serious look at government payrolls and spending in decades.

While we have always been told to dance like no one is watching, the government paraphrase is: spend as if there is no tomorrow and no one watching.

It now appears that tomorrow has arrived and the only fall back plan (borrowing) can’t be relied on since they have tapped out the reservoir.

This means they will adopt Plan B and attempt to raise taxes.

Barack Obama wants to tax the rich.

Jerry Brown wants to tax the rich.

However, the rich didn’t create these deficits.

Politicians gave away our wealth and now they are going after the last people left in America with money.

Will it solve the financial shortfalls? No.

Will increased taxes on the rich change the spending habits of government? No?

So what’s the point?

Simply continue the same unchanged existing spending policies until everyone in America is on food stamps (except government employees)?

California ranks at the bottom of our 50 states in educational funding and ranks near the top of the list in stupid legislation. Is there a correlation here?

For instance: look at the extra 40% tax levied on tobacco products 15 years ago. It drove thousands of small businesses out of business or out of California. So, smokers made one of those brilliant decisions to obtain their product via the Internet: TAX FREE.

Cost to California government? Billions!

This summer California government, in search of more funding, decided to tax Internet retailers like Seattle-based on-line giant Amazon. Even though the District Courts have ruled that taxing a non resident entity’s sales is illegal, California proceeded anyway. (They know a final decision will be tied up in the courts for years.)

Expected tax revenue; $200 million annually.

Revenue loss of on-line businesses leaving California; about $300 million!

Net loss to California $100 million.

Actual state deficit $10 billion!

Does this make you want to slap your forehead in agony?

Miles Barber can be reached at Scweekly2011@yahoo.com