Hate to say I told you so, but since the last major tax increase on cigarettes I've been saying it's only a matter of time before the government went after fat people. Obesity causes cancer, heart disease and diabetes, so it's no stretch of the imagination that they would start taxing people who are obese for the same reasons they tax smokers.
Arizona is now proposing a $50 tax on people who are obese. It has not yet passed, but I'm thinking it's only a matter of time. Seems like the U.S. government is looking for every possible way to increase tax revenues to pay for their overspending. I heard on the radio they've even proposed a 10 cent per roll tax on toilet paper. Time to stop the madness and stop the spending!!!
Showing posts with label tax hikes. Show all posts
Showing posts with label tax hikes. Show all posts
Saturday, April 2, 2011
Thursday, March 24, 2011
IS GOVERNMENT PRICING ITSELF OUT OF THE MARKET?
I read an interesting article on cnbc.com (click on title for link) about California's tax increase not working as far as raising projected revenues. During the "Great Recession", many local, state and federal politicians have been promoting the "need" for tax increases to meet record budget deficits. Personally, I believe they should be upfront and say they need the money to buy votes by pandering to special interest groups, promoting pet projects and pork barrel spending. Since we all know that's not likely to happen, there's no need for further debate on that issue.
What government in general should take away from the results of California's failure to raise revenues through tax increases is this: They are pricing their services (government services) beyond what the market (or taxpayers) are willing to pay. My guess is consumers are spending less, not only because of the recession, but also to avoid paying higher taxes. Businesses as well as wealthy individuals are relocating to more tax friendly states or countries, which is what I've been predicting would happen when taxpayers reached the breaking point.
Even people who are not quite so wealthy are deciding to relocate to foreign countries when they retire, because the taxes and cost of living are so much cheaper than many places here in the U.S.. They're taking with them their Social Security checks (aka U.S. tax dollars) and spending them elsewhere, creating a better standard of living in other countries, but creating no residual benefit for the economy here. No one can really blame them, if you can live better in your golden years by relocating, then why not?
At any rate, before our elected officials get in too big of hurry to add new taxes on top of old, they really should consider how much more the market will bear before taxpayers say no thanks.
What government in general should take away from the results of California's failure to raise revenues through tax increases is this: They are pricing their services (government services) beyond what the market (or taxpayers) are willing to pay. My guess is consumers are spending less, not only because of the recession, but also to avoid paying higher taxes. Businesses as well as wealthy individuals are relocating to more tax friendly states or countries, which is what I've been predicting would happen when taxpayers reached the breaking point.
Even people who are not quite so wealthy are deciding to relocate to foreign countries when they retire, because the taxes and cost of living are so much cheaper than many places here in the U.S.. They're taking with them their Social Security checks (aka U.S. tax dollars) and spending them elsewhere, creating a better standard of living in other countries, but creating no residual benefit for the economy here. No one can really blame them, if you can live better in your golden years by relocating, then why not?
At any rate, before our elected officials get in too big of hurry to add new taxes on top of old, they really should consider how much more the market will bear before taxpayers say no thanks.
Tuesday, January 18, 2011
WHAT CURRENT HEALTHCARE REFORM MEANS TO THE WORKING POOR
Still think healthcare reform was a good idea for the working poor? Let's go over a few of the highlights:
1. Starting this month, Americans can no longer use pre-tax health savings accounts to purchase over the counter medications. Also, withdrawals from HSA's and FSA's will now be taxed at 20%, twice the original 10% amount.
2. Starting in 2013, Americans will no longer be able to deduct prescription drug coverage as part of Medicare part D.
3. The biggest tax hikes for healthcare reform go into effect in 2014, starting with employers. If they employ at least 50 people, they will be mandated by law to provide insurance coverage or be fined $2,000 per employee. Should they make the employees wait, they will be fined an additional $400 per employee. This cost could be catastrophic to some small employers. If they go out of business, who covers the unemployed?
4. The absolute worst part of this reform for the working poor is the mandate that requires the employee to purchase this coverage. If you choose not to, you will be hit with a penalty of your own, to the tune of 1% of your income in 2014. If you do not have coverage by 2016, the penalty is increased to 2.5% of your income.
Does any of this sound good to you? If it does, I can only surmise that you are not a small business owner and you are not part of the working poor. I personally know people who could not squeeze another $10 a month out of their current budgets to purchase insurance, so how can anyone with half a brain think these people can afford to give up 1 to 2.5% of their income? The people I'm talking about are not lazy, they work all the hours they can get, rarely miss work and use their hard earned income to pay for food, housing and transportation, not drugs or alcohol. So why should they be beaten down by a government that is claiming to do them a favor in the guise of providing health care coverage? For that matter, if the Democratics, who were so proud of themselves for passing this "coverage", are going to force the poor to pay for it, they aren't "providing" anything. Their only real accomplishment, as far as I can see, is that they've managed to put a spin on raising taxes for the poorest of the poor, while creating an atmosphere in the small business community that makes it even harder to do business and provide jobs for many of these same people.
The real beneficiary here is the federal government. Under the guise of health care reform and helping the poor, they've manage to pass one of the most outlandish tax hikes in history.
1. Starting this month, Americans can no longer use pre-tax health savings accounts to purchase over the counter medications. Also, withdrawals from HSA's and FSA's will now be taxed at 20%, twice the original 10% amount.
2. Starting in 2013, Americans will no longer be able to deduct prescription drug coverage as part of Medicare part D.
3. The biggest tax hikes for healthcare reform go into effect in 2014, starting with employers. If they employ at least 50 people, they will be mandated by law to provide insurance coverage or be fined $2,000 per employee. Should they make the employees wait, they will be fined an additional $400 per employee. This cost could be catastrophic to some small employers. If they go out of business, who covers the unemployed?
4. The absolute worst part of this reform for the working poor is the mandate that requires the employee to purchase this coverage. If you choose not to, you will be hit with a penalty of your own, to the tune of 1% of your income in 2014. If you do not have coverage by 2016, the penalty is increased to 2.5% of your income.
Does any of this sound good to you? If it does, I can only surmise that you are not a small business owner and you are not part of the working poor. I personally know people who could not squeeze another $10 a month out of their current budgets to purchase insurance, so how can anyone with half a brain think these people can afford to give up 1 to 2.5% of their income? The people I'm talking about are not lazy, they work all the hours they can get, rarely miss work and use their hard earned income to pay for food, housing and transportation, not drugs or alcohol. So why should they be beaten down by a government that is claiming to do them a favor in the guise of providing health care coverage? For that matter, if the Democratics, who were so proud of themselves for passing this "coverage", are going to force the poor to pay for it, they aren't "providing" anything. Their only real accomplishment, as far as I can see, is that they've managed to put a spin on raising taxes for the poorest of the poor, while creating an atmosphere in the small business community that makes it even harder to do business and provide jobs for many of these same people.
The real beneficiary here is the federal government. Under the guise of health care reform and helping the poor, they've manage to pass one of the most outlandish tax hikes in history.
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