California Democrats, apparently unable to curb spending, say may not approve a state budget until they get a tax increase, IBD reports. Revenues, though growing rapidly, have not kept pace with spending. To close the gap between spending and revenues, the politicians ask for a $5 billion tax hike.
This is exactly what I have been writing about on this blog and in my The Peter Dag Portfolio. People ask. Politicians give. They run out of money. People get upset because they do not get what promised. Politicians raise taxes. This is how big governments become bigger.
The ultimate result is that the bureaucracy gains enormous power and we do not know how to defend ourselves once we recognize we are paying a grotesque tax bill.
I am familiar with a city that has a superb, ample and superbly equipped library. Yet they run out of money and could not buy magazines. The public protested. What was the purpose of having a nice library with no magazines? The politicians convinced the town new taxes were needed to provide the needed publications.
It is an irreversible process. People ask. Politicians give. We pay more taxes and our standard of living declines. The tragic issue is that no one really knows when to stop. Any ideas?
George Dagnino
No comments:
Post a Comment