Wednesday, January 25, 2012

Scratch Scratch Shake Shake Heavy Sigh

Economics has never been my strength.

Listening to or being involved in political discussions has always made me wish I was somewhere else.

Now that I am of a more mature age and in the tax bracket categorized as 'desperate' avoiding the responsibility of casting a well-researched vote seems irresponsible. Unfortunately, the information available to the public always contains a bias based upon whichever side the source from whence it came leans.

My 2012 vote will be based solely on my own take on economics, which may not be the wisest course to take. I should have listened to my father and taken a business class in college...

I need a jobs plan that will provide career options and a fair income tax rate that will enable me to live a modest lifestyle. Paycheck to paycheck is how it has always been and I do not see that changing in any foreseeable economy. Something has to give to help my own situation and this country improve. Nothing of note will change until these political parties learn how to meet in the middle. The chance of this happening seems about as remote as an upswing in the GDP.

All this talk about money and taxation has been overwhelming as of late. The press seems to be misleading the country when talking about Mitt Romney's taxable income. Capital gains tax is the tax you want to affect your income. It is the most advantageous tax available to anyone in America. Romney's earnings come from investments and business deals he made when he was an employee for a company. He is no longer an employee of said company but he stills makes money. Whether his income derives from crooked business practices, well-thought-out investments, or a combination of the two his earning are capital gains. This is a separate tax from income tax and it should be. He is not earning a paycheck like most of America and only getting taxed 15% of his salary. He is profiting from his past dealings. I don't see what the uproar is about. The government should not base capital gains tax rates on income earned from investments. There has to be a way for people, no matter what their earning are, to be able to keep their money.

Any hike in capital gains tax would affect the small-business person who also invested wisely and earned enough to make a living in the golden years. While this person's income might not be as large as Mitt Romney's this person deserves to keep as much of his or her portfolio as possible. Should wise investing be regulated and constantly nipped at by the government? Restructure income tax rates but leave capital gains alone. Let one straight capital gains tax rate affect everyone. This makes government seem so less meddlesome. This should also apply to the estate tax rate.

The government needs to stay out of earnings that were already taxed then set aside for the future of a deceased person's family. This is meddling and reaching the hand too far into the till. People get heavily penalized for providing for loved ones after they have died. I cannot stand the idea of government profiting from what is in essence a double tax. The government did not aid in the investment process, in fact it more than likely hurt the investment process, so why should it gain any income from someone's estate that was accumulated after years of hard work? Again, restructure the the income tax rate so those that do well pay up and those that get by can still feed their families and pay their bills.

Please forgive me for the layman's view of our current economic status. I look at money like a tithe. believers are supposed to donate 10% of their earnings back to the church. When you make 1,000 bucks a week that is a $100.00 tithe to the church. One hundred dollars seems easy enough, eh? What happens when the rich need to tithe? That check gets a little bit harder to write does it not?

I once saw the pay stub for someone whose paycheck for two weeks of work was $75,000 dollars. That tithe would be $7,500 dollars. The more you earn the harder it gets to part with your money...

The amount of tax people have to pay is crazy and whose fault is that? Yesterday in the Chicago Tribune I read an article about a man being rewarded with 25 million dollars after being wrongfully accused and imprisoned for a crime he did not commit. No wonder taxes have to be raised and people have to be nit-picked for money because the city keeps having to recover from terrible mistakes. Mismanagement on all government levels is destroying the economy. Hard-working citizens and citizens looking to become hard-working citizens are the ones that have to make up for the mistakes made by those whose salary is paid for by taxation. How can the economy improve when things like this occur?

Of course their are plenty of loopholes for the wealthy that I know nothing about. Wendell Pierce, a fine actor from "Treme" and "The Wire," once tweeted that he made over 200,000 dollars a year and wasn't taxed nearly enough. He made his tax rate seem like a joke and I appreciate that kind of honesty. That tax rate is something I know nothing about. I should probably just say that government should leave capital gains tax and estate tax alone, end of story. Don't penalize someone for managing their money well. Why not try my method and see what it does for the economy? Nothing else the government, meaning both Democrats and Republicans, attempts seems to work.

IMPORTANT DISCLAIMER: I would never vote for someone who puts their dog in a crate on top of their car. AND...I know officially declare myself and Independent.

This heady stuff that, unfortunately, makes the world go round exhausts me. I think I need to go back to listening to the scanner and write about crime and coyotes. Politics and economics is for people who don't like daydreaming.

1 comment:

  1. a different Chip than the one I used to know...time acquired wisdom. nice piece.

    ReplyDelete