Waiting for taxpayers to take the hit

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December 28th, 2009 :: Permalink

Aloha ~
Mr. Kalapa always finds a captive audience since Americans have lied to ourselves for decades about taxes. Beginning in the 1980s this country began reducing taxes - primarily on the MOST RICH - as they claimed lower taxes and decreased regulation would lead to the creation of more and better paying jobs. This clearly has not happened. Instead our MOST RICH have become increasingly wealthy while middle class families are on the edge of collapse.

Kalapa claims increased taxes to support the public's demand for services would crush local business. We have two scenarios: (1) we can levy a small tax on everyone to cover the state budget shortfall, or (2) levy a large tax on public workers to reduce the shortfall.

In the math of economics both scenarios hurt the local economy - as money is taken from consumer hands. Yet scenario #2 is far more destructive as the large tax on the few will put many of these families under water. It is therefore economically better, as well as more fair, to spread the pain as widely and thinly as possible.

Kalapa claims the private sector is hurting. This is true - yet due to the private sector's failure on Wall Street. Public employees did not design and champion this flawed economic system. On the other hand, Kalapa lies about the extent of the pain in the private sector. While some workers have suffered pay cuts, work reductions or job losses they are a minority - not the majority.

Finally, we must keep in mind that private sector employees plan for downturns ... because they are rewarded handsomely during upturns. This is the "contract" in private sector work. When times are good, there is great profit to be made. When times aren't good, these workers recognize they are liable to see cutbacks.

This is not how the public sector works. When times are good, these employees do not get hefty raises or annual bonuses. Their compensation remains relatively flat. Thus these workers do not have extra savings to help them in downturns. It is our "social contract" with public workers to protect them in bad times as they forgo massive increases in good times.

Kalapa continues a tired line of rhetoric ... the sky is falling and taxes are the culprit. Yet we have lowered taxes on our MOST RICH for decades and now the sky is falling on hard working, middle class families.

Taxes should be increased - but ONLY on our MOST RICH. Middle class families, whether public or private, are tapped. Our MOST RICH have taken increasing amounts of wealth from the rest of us and still demand more. This is, of course, the definition of GREED ...

For more on our current tax situation, please see, America's Wealthy Wage War Against the Middle Class

A*L*O*H*A