Local gas tax not uncommon government and politics pantagraph.com z gas ensenada


Let’s say the government taxes a business one dollar in the city. That city then hires a private company to build a road or fix a light. That private company then gives me, the employee, that dollar that was paid in taxes by that business. I take that dollar and buy a soda from the business that was originally taxed, and they deposit that dollar in the local bank, who then loans that dollar out to another business or person. See the money flow?

Now here is Trickle-Teddy’s conservative model. Reduce or stop taxes. This allows that original business to keep that dollar in profit. The company doesn’t hire anybody new, because demand is down. That dollar is not put into the local economy. It is withdrawn in dividend payments to investors and CEO salaries who then sit on it because, as history explains, the wealthy CAN NOT spend all of their money. Banks and very large businesses are currently stifling the economy and money flow because they are sitting on the profits, rather than hiring or reinvesting in their business. And Teddy continues to whine because he can’t figure out why the economy sinks further into the toilet of his creation.

Most tax complainers also complain about a raise in minimum wage and cheer when another business cuts pay or moves off shore. They are against unions. As the median wage drops the tax burden falls more on the few earning enough to pay taxes. In turn the municipalities, the state and the federal government have to find new ways to tax that effects everyone. Pensions were based on an economy where a large middle class paid the bills. Today that middle class has shrunk till there are not enough to cover expenses. Corporations and business contribute around 7% of the Illinois revenue raised. Corporations dealing in retail actually use more than they kick in by sending their help to the government for part of their wages. Illinois unemployment has dropped but those jobs are service industry that pays at a scale that keeps their employees among the 47% who do not earn enough to pay taxes. So there you go, more taxes that effect everyone and more breaks the higher your income is. You whiners pay those taxes and still claim any change is punishing success. It is the world you made long ago. The trend made this drastic shift way back in the 1980’s and you still support it so now you have to pay for it. It has been suggested to put a tariff on goods made there and sent back here for sale. The people who will never suffer from such taxes rally behind the corporations would pay the tariff and then wonder why good jobs are so hard to find and more people depend on entitlement to survive.

Instead of real leadership that knows how to cut costs for non needed things, they keep coming up with tax increases in one form or another. When is reality going to set in, when home prices tank in the area for a lack of new jobs or thousands leaving? The property taxes surpassed the point of ridiculous years ago here compared to other states across the country. The only thing I can take away from this, is that we do not know how to budget and determine wants from needs in our community. Yes, the pensions are not where they should be for funding, so what are we doing about it, other than putting more money in it? How about cutting the pensions, or capping them? Teachers pensions are a state issue by the way and we are talking about city pensions in this article. Two different budgets but similar problems of over promised from the past, current, and future retirees. As a homeowner I have to cut expenses as the prices of groceries, utilities, and other expenses go up. I am cutting out the land line, don’t need it since I now get reliable cell service, cutting out the Pantagraph delivery, reducing the Dish Channels, cutting more coupons, using more generic products, etc… My point is learn to cut costs, and quit raising taxes to only do it again next year, and the next. There is only so much money so instead of raising taxes, make the cuts deep and deal with it.

This is another case where failing to plan has now become everyone elses’ problem and issue to deal with. Red flags all over this. When politicians, governors and civic leaders use the words "tax and temporary" in the same sentence or context, it’s the same thing as a heroin addict saying "just one more fix and I’ll quit." Governments all across this nation are addicted to taxing their way out of poor planning and avoiding fiscal discipline. Citizens are to take responsibility for acquiescing to them and enabling them. Time to say "no" and force leaders to find another way to change and manage the future. Private sector employees across the country have to deal with benefit and policy changes where tough decisions have to made that negatively affect one group, but not another (age cut offs, grandfathering, etc.). Pension reform, if it ever happens, is going to be painful and a group of people will feel it while another does not. I agree with Responsibleone, be bold and act and deal with the pain. Stop kicking that can down the road for the rest of us to pick, clean up, and put our hard-earned money in to perpetuate the problem.