An Ol’ Broad’s Ramblings
Even I Can Figure It Out……BAD IDEA!
Britain’s chancellor of the exchequer, Alistair Darling, did something rather strange recently to baffling applause from his own supporters and cries of “bribery” from the opposition: He announced a tax on teenagers.
Darling’s plan is to cut income taxes temporarily for all but the most prosperous taxpayers. The apparent windfall is £120 each—almost $230. If that sounds familiar, it isn’t surprising: A similar plan is already in motion in the United States, where a temporary “tax rebate” began to arrive in the bank accounts of a grateful nation about a month ago. The motivations are different in the British case. While the U.S. plan is billed as an economic stimulus, the British plan is marketed as compensation for those who lost out when taxes on some low earners were recently raised. No matter, because the practical impact of both plans is just the same: Teenagers are getting it in the shorts.
Let’s face it, politicians, no matter in which country they reside, have a complete lack of common sense! Do they lose it after they are elected to office? Did they never have it in the first place? What does that say about the people who keep sending them back into office? Does it mean that we’re totally without common sense too?
I’m no economic scholar. Shoot, I’m not scholar of any sort. I’m just one of those yahoos out here in the real world, paying big bucks in the grocery store for a loaf of bread that shouldn’t cost more than 50 cents. I’m that person at the gas pump who grumbles, but not at “Big Oil”. Yes, ladies and gentlemen, I am just like you in many ways, although probably a bit older….and maybe wiser? That can be disputed though.
When I first heard of this really odd plan out of D.C., my original thought was “Cool!” My second thought, “Who’s going to really pay for that?” Even I, the lowly ol’ broad, can figure out that you can’t go tossing money out the window without having to replace it at some point.
Say you’ve got a 20 something, fresh out of college, making a fairly decent wage for a first REAL job. Say that 20 something gets this lovely “gift” from the gubmint. He spends it. Where does it go? On a stereo, made in China? She buys clothes, made in Mexico, or India? Or like one of my shirts, in Jordon? Who is this helping? American manufacturers? Nope. A good chunk of manufacturing jobs were sent overseas due to the rising costs of health care packages the unions insisted on.
Let’s say the 20 something, doesn’t spend his “gift”. Instead, he puts in a savings account which draws a VERY small amount of interest. Granted, the banks use these funds to give out loans, but still, those taking out the loans are usually remodeling something or building a house, with items manufactured in foreign lands. Again, how is this helping the economy?
So, now, the 20 something gets married, has a couple of kids and has moved on to his 30’s and 40’s. he is now thinking of the tax burden, placed on him by the gubmint because THEY don’t have a clue as how to manage money. The now 40 something guy has to pay his bills, and if he doesn’t, things get taken away from him. He also has to pay interest on any loans, or whatever. Again, if he doesn’t, he’s penalized, and ruins his credit rating.
So, we come to the gubmint. In a democracy, or something similar where folks are voted into office, there is this odd ability to spend money, that isn’t really theirs. This gubmint takes no responsibility for it’s actions, and puts a nation further and further into debt. Do the people who support this gubmint, financially, get to say “Hey, you need to pay the bills you’ve already created, otherwise, we’re going to repossess!” Sadly, no, although we really should. And the gubmint folks keep right on spending, creating debts, writing checks for useless things that do not protect the people, but satisfy their own personal agendas.
Now, the gubmint has run out of money, and needs a whole lot more. Where are they going to get it? Why, from the 20’s somethings future 20 somethings. That future 20 something has graduated from college, or whatever, if dad can even afford it by this point thanks to the increasing taxation to pay for the “stimulus checks” back when. The new 20 something gets his first real job, and sees his first pay check. The gross amount is fairly decent. It’s that “net” amount with which he’s totally bewildered. The infamous question arises: “Who the hell is FICA, and why does he get the majority of my paycheck!?”
Let’s hope the Brits will learn from D.C.’s massive mistake, and NOT follow suit!
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