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	<title>Dose of Clarity &#187; tax increase</title>
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	<link>http://doseofclarity.com</link>
	<description>Logic and common sense</description>
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		<title>Characterizing the insurance mandate</title>
		<link>http://doseofclarity.com/politics/characterizing-the-insurance-mandate/</link>
		<comments>http://doseofclarity.com/politics/characterizing-the-insurance-mandate/#comments</comments>
		<pubDate>Tue, 29 Sep 2009 21:19:08 +0000</pubDate>
		<dc:creator>author</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[health care]]></category>
		<category><![CDATA[health insurance]]></category>
		<category><![CDATA[health reform]]></category>
		<category><![CDATA[individual mandate]]></category>
		<category><![CDATA[insurance mandate]]></category>
		<category><![CDATA[tax increase]]></category>

		<guid isPermaLink="false">http://doseofclarity.com/?p=597</guid>
		<description><![CDATA[There has been a lot of public debate lately about having an insurance mandate as part of the health care reform proposal, and the characterization of it has been met with varying opinions.  The main disparity is centered on whether this should be considered a tax increase hence breaking the campaign promise of not [...]]]></description>
			<content:encoded><![CDATA[<p>There has been a lot of public debate lately about having an insurance mandate as part of the health care reform proposal, and the characterization of it has been met with varying opinions.  The main disparity is centered on whether this should be considered a tax increase hence breaking the campaign promise of not raising taxes on people making less than $250k.  Supporters of the mandate are feverishly defending it as simply providing for one’s own health care or being assessed a penalty upon failure to obtain such coverage.  Critics are countering with the fact that the Government is mandating this on its citizens thus it is effectively a tax.  While the politicians, pundits, and the media are debating how to label this forced participation, it should not be difficult for us citizens to characterize the end result.  Regardless of what official label is ascribed to it as the political games continue, the one certainty is it will extract money out of the pockets of citizens.  This will surely <span id="more-597"></span>be the case if you are not currently buying insurance or if you are directed to upgrade your current policy because it is deemed insufficient or unacceptable by our Government.  From a logical point of view, it really does not matter if you call it a tax, penalty, fine, assessment, fee, or any other designation because the Government taking or directing money away from someone involuntarily will still have the same tangible impact.  If people prefer to call it a penalty versus a tax or a fee versus a fine then they are free to do so because the result is identical.  The debate is disingenuous because it is nothing more than political posturing for the sole purpose of shaping the public’s opinion on classifying the sequestering of people from their money, but we as a public should understand this.  It seems foolish to care about the political debate describing the mandate when the outcome of its implementation is already known, we should remain observant of substance over form.  This game is only important to politicians so they can refute any future accusations of busted campaign promises once confronted by opponents, but it should remain pointless to us.</p>
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		<title>Assessing Cap and Trade</title>
		<link>http://doseofclarity.com/politics/assessing-cap-and-trade/</link>
		<comments>http://doseofclarity.com/politics/assessing-cap-and-trade/#comments</comments>
		<pubDate>Wed, 12 Aug 2009 18:55:14 +0000</pubDate>
		<dc:creator>author</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[big government]]></category>
		<category><![CDATA[cap and trade]]></category>
		<category><![CDATA[climate change]]></category>
		<category><![CDATA[energy bill]]></category>
		<category><![CDATA[global warming]]></category>
		<category><![CDATA[tax increase]]></category>

		<guid isPermaLink="false">http://doseofclarity.com/?p=543</guid>
		<description><![CDATA[Once Congress reconvenes in the fall, they will soon start pushing the Cap and Trade bill once again in order to fight the Loch Ness monster of our time known as global warming.  Many people will swear it exists, but just as many will deny its presence, and there are scientists on both sides [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.flickr.com/photos/rahims/2119329979/"><img src="http://doseofclarity.com/wp-content/uploads/2009/08/2119329979_6859251a271-150x150.jpg" alt="Smokestack" title="Smokestack" width="150" height="150" class="alignleft size-thumbnail wp-image-542" /></a>Once Congress reconvenes in the fall, they will soon start pushing the Cap and Trade bill once again in order to fight the Loch Ness monster of our time known as global warming.  Many people will swear it exists, but just as many will deny its presence, and there are scientists on both sides of the issue that feel strongly in their positions.  Everybody will have their own opinion on the subject which will certainly be shaped by what “experts” they choose to follow and believe.  Instead of arguing the issue from an emotional standpoint maybe it would be useful to come at it from another angle.  Here is a list of statements that we should seriously think about and determine the believability of each before Cap and Trade is supported. </p>
<p>1.  First of all, you would have to believe that global warming actually exists, not just that temperatures have become warmer over recent history which is definitely a measurable item, but that it is absolutely not a naturally occurring process that is repeated throughout the earth’s history.<span id="more-543"></span></p>
<p>2.  Then you would have to know with certainty that it is definitely caused by carbon emissions.</p>
<p>3.  Then you would have to be convinced that any scientifically proven temperature rise is without question due to man’s voluntary carbon emissions (energy creation), thereby excluding any and all natural events beyond man’s control such as breathing, volcanoes etc.</p>
<p>4.  Then you must believe that America can affect the outcome by a statistically significant amount taking into account that China and India do not seem interested in constraining their economies to participate.  Take into consideration the fact that most of the manufacturing base of the future will be in those countries.</p>
<p>5.  Then you would have to believe that America can really afford to shoulder the cost on our economy being that we are currently the biggest debtor nation in history, and that debt is increasing dramatically which will only weaken us more in the years to come.</p>
<p>6.  Then you would have to be confident that American jobs will not just be sent to another country in order to circumvent the added regulation.  These countries that refuse to participate may become the largest beneficiaries of factories that are burdened with the costs of our legislation. </p>
<p>7.  Then you would have to be comfortable with the projected cost estimates per household, and be certain that they will not add to the hardships of the lower-income segment since this program will prove regressive thus hitting this segment the hardest.  </p>
<p>8.  Then you would have to trust that our Government has the ability to solve the problem considering they never solve anything, their history consistently shows they become the problem at every turn.</p>
<p>9.  Then you would have to be confident that our politicians would truly be motivated to do the right thing for America and not just use it as a political bargaining chip for their own benefit, thus horse-trading the bill until it is rendered unrecognizable and ineffective.</p>
<p>10.  Then you would have to believe the debate is really about climate change for the politicians, or is it more likely about raising money and providing another instrument of control for the Government to continue building power?  These are people that have continually shown a lack of respect and contempt for our nation when their own best interest is not being served, thus anything they say can not be trusted as the truth instead of political expediency.</p>
<p>As you can see, it is extremely difficult to get through this list and honestly concur with all the points without any reasonable doubts.  Any number or combination of these statements can be viewed as believable, but they should all be seen as such before our Government saddles us with the huge consequences of this plan. This could be an easy decision if the outcome were a few billion dollars here or there, but if we are going to make a bet of hundreds of billions of dollars on this plan as a nation then we certainly should be convinced that this whole list is realistic.  The cost estimates for this are all over the place depending on the bias being presented, but it is important to realize that it will affect everything that is purchased and not just your monthly utility bill.  Would anyone honestly bet the farm that all the above statements are believable?  This should be the standard we apply before such a massive program is unleashed on us, or it will go down as another huge policy mistake that puts another nail in our coffin as a nation. </p>
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		<title>The California sidestep</title>
		<link>http://doseofclarity.com/politics/the-california-sidestep/</link>
		<comments>http://doseofclarity.com/politics/the-california-sidestep/#comments</comments>
		<pubDate>Sun, 05 Jul 2009 19:23:39 +0000</pubDate>
		<dc:creator>author</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[ballot initiatives]]></category>
		<category><![CDATA[borrow money]]></category>
		<category><![CDATA[california]]></category>
		<category><![CDATA[iou]]></category>
		<category><![CDATA[print money]]></category>
		<category><![CDATA[reduce spending]]></category>
		<category><![CDATA[tax increase]]></category>

		<guid isPermaLink="false">http://doseofclarity.com/?p=488</guid>
		<description><![CDATA[The political wrangling continues in California while the Legislature fails to tackle its $24 billion deficit, all of their energy seems to be concentrated on circumventing the obvious choice of reducing spending.  The voters sent a clear message to state officials with the ballot initiatives they struck down back in May.  Their message [...]]]></description>
			<content:encoded><![CDATA[<p>The political wrangling continues in California while the Legislature fails to tackle its $24 billion deficit, all of their energy seems to be concentrated on circumventing the obvious choice of reducing spending.  The voters sent a clear message to state officials with the ballot initiatives they struck down back in May.  Their message was for no more tax increases or borrowing of money to continue their wasteful over the top spending.  The voters seemed ready to take whatever medicine was needed to bring the lunacy to an end and instill some restraint in the budgetary process.  That was about 6 weeks ago and there does not seem to be any progress made on that mandate and their fiscal year ended June 30th.  Beginning in the month of July, if some concrete solutions are not presented then the state will be forced to issue IOUs from the treasury to cover expenditures.</p>
<p>IOUs are not a solution to this issue as they are just another way to avoid the difficult choices that must be made.  Plus, IOUs are nothing <span id="more-488"></span>more than a form of debt which is in violation of the will of the people that voted to end this practice going forward.  How is it that state officials do not seem to understand that the voters want the spending reduced, no more searching for ways to keep financing unsustainable budgets with taxes or debt which should include the use of IOUs?  It makes you wonder if these IOU issuances may prove to be a ploy in which the state never honors, they can be conveniently extended into the future to be dealt with at another time by someone else.  This will make the state Government either disingenuous with the voters or dishonest with the recipients of the IOUs.  There is really only one way out of this crises and it is to bring the expenditures in line with the revenue of the state.  No amount of political deception, avoidance, or any other attempt of bypassing this reality is going work.  Simply, IOUs are a form of debt in which voters clearly rejected, they should not be used and expenditures should be reduced instead.</p>
<p>This is something we should all watch carefully throughout the country because it is going to be the fate of our nation as well.  Our Federal Government is travelling down the exact same road of irresponsibility as the state of California did, and our future will soon be bringing us a dreadful message as well.  They say as California goes, so goes the country.  The only difference is California can not print its own money and the day may come that we are going to wish the same of our Federal Government as well.    </p>
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		<item>
		<title>A taxing climate change bill</title>
		<link>http://doseofclarity.com/politics/a-taxing-climate-change-bill/</link>
		<comments>http://doseofclarity.com/politics/a-taxing-climate-change-bill/#comments</comments>
		<pubDate>Mon, 29 Jun 2009 00:09:37 +0000</pubDate>
		<dc:creator>author</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[alternative energy]]></category>
		<category><![CDATA[cap and trade]]></category>
		<category><![CDATA[climate change bill]]></category>
		<category><![CDATA[energy bill]]></category>
		<category><![CDATA[global warming]]></category>
		<category><![CDATA[green jobs]]></category>
		<category><![CDATA[tax increase]]></category>

		<guid isPermaLink="false">http://doseofclarity.com/?p=483</guid>
		<description><![CDATA[The so-called Climate Change Bill is currently working its way through Congress having just passed the House by a small margin and now it is off to the Senate for their consideration.  Once again, we have another bill that was passed in the House that was not read in its 1500 page entirety including [...]]]></description>
			<content:encoded><![CDATA[<p>The so-called Climate Change Bill is currently working its way through Congress having just passed the House by a small margin and now it is off to the Senate for their consideration.  Once again, we have another bill that was passed in the House that was not read in its 1500 page entirety including amendments.  This is a bill that will issue a cap on carbon emissions by forcing the purchasing of carbon permits which will slowly decrease over the coming years.  The idea being sold to the public is the purported intention of creating millions of green energy jobs and combating global warming in the process.  Congress is willing to push forward on this issue regardless of any unconvinced opinions that remain or its associated cost.  The names that are being used to reference this proposed legislation are the Climate Change Bill, Cap and Trade, or the Energy Bill, but it has become very clear that there is no desire to accept the true descriptive nature of this bill which is <span id="more-483"></span>a tax on American citizens.  It is a tax we will all pay every time we use any form of energy centered on carbon, and it will likely shroud itself by being embedded in the price of any energy consumed, thus it will not be seen individually as a separate charge.  Additionally, we will have to pay the higher incremental cost of less efficient alternative energy provided that can not be produced or delivered as economically as carbon-based energy.  Either way, it will be more money out of the wallets of Americans because the Government will be receiving money from this plan, hence it stands to reason that citizens will be paying that money however direct or indirect it may be.</p>
<p>The ridiculous part of this are the very biased views being presented in this dispute with both sides wanting to paint it in their favor.  The Democrats want to paint it as a creator of green jobs and climate enhancement which both sound appealing at this time, particularly the job creation part to combat unemployment.  The Republicans see it in much simpler form as a huge tax increase at the worst possible time that will cost jobs instead of creating them.  As expected they are both partially correct, if you throw endless sums of money at a project it is likely to create some amount of jobs, but it is also very much a tax.  The basic definition of a tax is simply a fee levied by a Government on a product, income, or activity. If such fee is levied on personal or corporate income, then it is a direct tax, if levied of the price of a good or service, then it is an indirect tax.  Simple enough, without any doubt this certainly qualifies as a tax, an indirect tax to be specific.  However, what is not known is whether this will create more “green jobs” than what it eliminates throughout the economy due to the tax that will be levied.  The real question we should ask ourselves as Americans is our willingness to pay hundreds of billions of dollars, maybe a trillion over time, in taxes to possibly create some incremental jobs and to combat global warming that may turn out to be as fictitious as global cooling was in the 1970’s.  Plus, will any real reduction in carbon emissions prove statistically significant considering the massive cost associated to travel down this rabbit hole?  This is the crux of the issue when you eliminate all the posturing, but do not believe the rhetoric stating that this will not be a tax extracted from each of us during a very challenging time in our economy.  A tax it will be, so all that is left to be determined is do we think it is worth it?</p>
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		<title>Paying as you go should be a given</title>
		<link>http://doseofclarity.com/politics/paying-as-you-go-should-be-a-given/</link>
		<comments>http://doseofclarity.com/politics/paying-as-you-go-should-be-a-given/#comments</comments>
		<pubDate>Tue, 16 Jun 2009 19:05:03 +0000</pubDate>
		<dc:creator>author</dc:creator>
				<category><![CDATA[Politics]]></category>
		<category><![CDATA[borrow money]]></category>
		<category><![CDATA[deficit spending]]></category>
		<category><![CDATA[government spending]]></category>
		<category><![CDATA[paygo]]></category>
		<category><![CDATA[tax increase]]></category>

		<guid isPermaLink="false">http://doseofclarity.com/?p=458</guid>
		<description><![CDATA[The Government collects a certain amount of revenue in the form of taxes every year to pay for its existence, yet it customarily spends much more than it collects and nonchalantly finances the difference with hardly a headline.  This is an astounding occurrence in that the Government can spend anything it desires and any [...]]]></description>
			<content:encoded><![CDATA[<p>The Government collects a certain amount of revenue in the form of taxes every year to pay for its existence, yet it customarily spends much more than it collects and nonchalantly finances the difference with hardly a headline.  This is an astounding occurrence in that the Government can spend anything it desires and any shortfall from raised revenues gets put on credit for Americans to supposedly pay at a later date, and we have become so accustomed to this that we pay it no attention.  It almost seems like some imaginary concept that is not real so we go about our lives and ignore it.  It appears insignificant as long as the economy is growing faster than the debt is accumulating; however, it tends to remind you of its existence once the economy hits the skids like it is currently.   We are finding out more and more that there is a limit to our excesses and we need to implement a more disciplined approach to managing our expenditures as a nation.</p>
<p>If you think about it, our Government is forcing a backdoor tax increase on us without any public or political debate.  Instead of embracing this <span id="more-458"></span>debate in an honest and open manner, they merely circumvent it by just borrowing the money needed with full knowledge that taxes must be increased sometime in the future to pay for it.  Once that time comes, then the American public will have no choice but to face the music and pay up without any opportunity to have their voice heard.  It is a dishonest approach that our Government is choosing to employ with us, and the worst part is how unbelievably immoral it is for there to be an expectation that future generations will be happy to pay for our indulgence.  We know what revenues are being raised, and we should be required to fit our expenditures within that budget, if we do not have the revenue, we absolutely should not spend the money.  This is not only the responsible thing to do, but it also brings the added benefit of forcing an open and timely discussion about Government spending and tax revenues since the two are required to reconcile each and every year.  Our current system allows these discussions to be eclipsed hence presenting our Government boundless authority to spend recklessly because they can always borrow more on the taxpayer’s behalf without any consent or approval.</p>
<p>It is hard to understand why it is so difficult for us Americans to live within our means as a nation, and what is it that gives us the misguided thought that it is acceptable to consume more than we can afford anyway?  We often exhibit overspending in our personal lives aided by the usage of credit cards, the difference is that we expect to pay off our own credit cards and not presume it to be a future generation’s responsibility.  Creating some fiscal discipline would be a shocking adjustment at first, but it needs to be done for the sustainability of our nation and to force our Government to be accountable for their spending on a yearly basis.  If spending exceeds revenue, then they must justify why and adjust for its repayment in the next year’s budget.  Once the shock of the initial adjustment occurs, it will become much simpler from that point on and the benefits of doing so will start becoming apparent to our nation.  Carrying on with the current irresponsible policy that is trashing our future, our currency, and our standing in the world should no longer be acceptable, and the cure begins with balancing our budget which should be seen as common sense.   </p>
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		<title>Tax increases to be paid by others</title>
		<link>http://doseofclarity.com/general/tax-increases-to-be-paid-by-others/</link>
		<comments>http://doseofclarity.com/general/tax-increases-to-be-paid-by-others/#comments</comments>
		<pubDate>Tue, 21 Apr 2009 20:49:37 +0000</pubDate>
		<dc:creator>author</dc:creator>
				<category><![CDATA[General]]></category>
		<category><![CDATA[government spending]]></category>
		<category><![CDATA[redistribution]]></category>
		<category><![CDATA[tax increase]]></category>

		<guid isPermaLink="false">http://doseofclarity.com/?p=351</guid>
		<description><![CDATA[It is a strange nation that we live in where there is no shortage of opinions stating that taxes should be increased instead of reducing spending, yet those that opine to such never take it upon themselves to set an example by including a “donation” in addition to their computed taxes owed on their 1040s. [...]]]></description>
			<content:encoded><![CDATA[<p>It is a strange nation that we live in where there is no shortage of opinions stating that taxes should be increased instead of reducing spending, yet those that opine to such never take it upon themselves to set an example by including a “donation” in addition to their computed taxes owed on their 1040s.  If they truly believe that we are not taxed enough and that the Government is not getting its fair share then why are they not voluntarily paying more?  I am sure there would be no opposition to anyone willing to contribute and the IRS would gladly accept any such donations with no questions asked.  The reason that we do not see these donations happening is because people that strongly favor tax increases actually believe that someone else should suffer the burden besides them, otherwise they would happily pay more to support what they are advocating.  Imagine it being <span id="more-351"></span>acceptable to expect others to pay for the increased cost of our Government while insisting on a free pass for themselves.  What gall it must take to advocate higher taxes on people that are paying more than most already even though they are less likely to receive the benefits thereof.  It is always easier to spend someone else’s money rather than call for spending discipline from our Government.  It achieves the redistribution of wealth and reinforces the idiotic notion that any of us has a right to another person’s living.</p>
<p>Anybody that proposes increased taxes to be paid by others, while excluding themselves or some other segment, is simply doing nothing more than freeloading in our society.  Apparently, their upbringing never offered the lesson that they should pay their own way in life and not pass it on to someone else.  A better message would be to encourage individual responsibility that does not expect the Government to provide a living for one by the fleecing of another.  This simple change of philosophy will have the astonishing outcome of reducing governmental expenditures by converting dependent payees into productive payers into the system, which then reduces the need for more taxes.  Limiting the size of our Government is the only viable solution that will be sustainable, because no amount of other people’s income will ever be sufficient to pay for the ever expanding crowd that just prefers to be a sponge. </p>
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