South Carolina Governor Mark Sanford has taken a position to not accept federal stimulus money for his state unless the money be used to pay down debt, rather than posited to education and very needy schools.
Similarly, California Governor Arnold Schwarzenegger, announced on Friday with his May revise that more cuts to education are in order, as well as to monthly aid to the poor, disabled, and elderly, to in-home health care workers, and layoffs of state workers. I mention these three four items in particular because they all would affect my household. I am a state worker in education, my three-year-old diabetic nephew receives aid, and my 90-year-old lola utilizes the in-home supportive services program.
I myself have taken the furlough in stride, knowing that a few changes in my spending and investing habits would compensate for the adjustment. However, as the only income in my household, being layed off would be disastrous for me.
What baffles me, however is that with all the proposed cuts to services for the most needy and the least empowered--kids, the elderly, and the needy--their counterparts do not seem to be facing the similar bleak future. In my opinion, a multi-millionaire can absorb an economic downturn better than a person teetering on the brink of poverty. Similarly, I believe that they can adjust to a tax increase more easily than a middle-class individual.
I understand the concept that people earn their money and they should be able to do with it what they please. It is a valid argument. Many are also disenchanted with how government operates, targeting its wastefulness as one of many reasons to oppose tax increases.
At the same time, government has a valid argument that costs to operate are higher. When costs rise for a for-profit company, they can pass along those increased costs to the buyers. However, government can not pass along increased costs to taxpayers without voter approval. There is a strong feeling that citizens are entitled to quality government services. Government services are provided only through taxpayer monies.
I am not sure if taxes have historically kept up with inflation, but one statistic that I heard is that in 1981, the tax bracket for an individual with an annual income of $100,000 was 70 percent. Whether or not government was efficient at that time is up for analysis. In 2008, the tax bracket for an individual with the same income is 28 percent. I would venture to say that most people are not happy with government right now.
I acknowledge that the tax bracket is not the only difference between 1981 and 2009. The purchasing power of a dollar is different, as well as the population, and the social, economic, and political climate in general. It is terribly complicated, with many ways to better the situation. The best way, is the one that creates consensus, not just between political leaders, but with lawmakers and taxpayers, rich and poor, and any other dialectic that can be stated. That day can not come a day too soon.
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