rocket finance

Rocket’s Reply to Randall’s Rebuttal

Even though I am passionate about taxes, politics and finance, I try to season my speach with grace and a friendly smile. Just because we differ on policy does not mean that I don’t find value in Randall’s writing at Credit Withdrawal.

There are too many issues in this discussion to address everything in Randall’s latest post, but let me deal with a few philosophical statements that I hope are convincing. Randall’s comments are in italics.

The interstate system is just that, INTERSTATE. Having the individual states take accountability for their own road infrastructures is one thing, but when you’re talking about a huge system that supports everyone, I believe it should be managed overall for a consistent system. If the money is passed on to the states directly, there’s no guarantee that the quality of the highway system won’t be affected. Rich states might end up having highways paved in gold, poorer states might revert to dirt roads.

I trust that states have enough smart people to handle the road maintenance. Why give the money to the federal government in the first place? Just because the money goes to Washington and then back to Wisconsin does not mean that our roadways are going to be in any better shape. Even the poorest state can handle road maintenance and if a state lets their road system deteriorate, they will answer to the people of that state who will either vote in better leaders or move. When the feds mess up our road system, there is no accountability at the ballot box, we have no choice but to accept the hand we are dealt. Road maintenance is never a big issue in national elections, but it can be a significant issue at the local and state level. Wasn’t it a federally maintained bridge that collapsed in Minnesota last year?

When you take a look at the programs in DHHS that take up the money, Medicare and Medicaid combined take 84.4% of the budged amount. That comes to an outlay of $588,727MM for medical assistance for those already covered by Medicare/Medicaid. Are you suggesting that we shift the burden of support for these people onto the state??  That would work out to only an additional $11.774 BILLION dollars they would have to come up with, not to mention the increase because of the Baby Boomers nearing retirement age. Either that or are you suggesting that we start denying aid to people. (We’ll go with your family first if you don’t mind). The issue has been brewing for decades, and it won’t be fixed instantly. In any huge system there are inefficiencies and bureaucratic rot, but abandoning the poorer and needy isn’t the America I want to live in.

What Randall seems to be missing is that we are already coming up with the additional $11.774 billion. Where do you think that money comes from? The government does not create wealth, it only collects and redistributes it. We can get rid of most of the bureaucracy and inefficiency by cutting the federal government out of the process. I believe that my state and city can care for the poor and needy with much greater efficiency. Of course, I also believe that we have outstanding charities that would benefit from a tax cut. . .charities who do a great job of caring for the poor and needy. Liberals look to the federal government to care for the poor person next door instead of taking responsibility and doing something for the poor on their own. They would rather send the money to Congress, filter it through a huge bureaucracy to help someone in their own town, than to figure out how to help that same person locally. 

Randall makes the argument that since the United State ranks 27th in the world in life expectancy that we somehow need to put Washington D.C. in charge of healthcare. I don’t know if that argument needs rebuttal. 

I belive that we need more privatization in medicine - one place to start is to give a tax rebate or a tax deduction for people who buy health insurance. More people could afford health insurance if they had a voucher, a tax deduction or some other incentive to go out and find the best product at the best price for their needs. I could get some pretty good insurance with my share of what the government is shelling out for Medicaid and Medicare and BadgerCare and all the other programs that are out there. Car insurance in our country is an affordable product that works well. The government requires it, which is fine, and companies compete to provide it. That is what keeps such insurance low. Why can’t we introduce some of the same principles in healthcare.?

Tax cuts are a short-term financial stimulus that can have long-range unexpected consequences. Having said that, I like having more money in my pockets too. But if more taxes gets rid of the National Debt, and keeps us from CONTINUALLY running the government in the red, I’ll write the check. Our government and leaders have been fiscally irresponsible for so long that it’s become institutional. And any candidate that tries to make a change IN ANY PARTY, is draped with the political albatross of “Tax and Spend Liberal”. The bills are coming due, and the country is starting to come up short.

Spending causes deficits, not tax cuts. Get the federal government out of education, welfare, healthcare, road construction. . .all of a sudden the budget starts to shrink and we can work on the debt to a greater extent. Does anyone really believe that more taxes will reduce the national debt? I live in a state where businesses and retirees are leaving in huge numbers because of confiscatory tax rates. High taxes discourage economic growth and reduce government revenue. If it was not true, why doesn’t the government make the tax rate 70% across the board, pay off the debt and be done with it? Because every rich person and business owner would leave the next day. We worry about jobs going to Mexico and India - I bet if we cut taxes on those businesses, they would stay in the States and employ more taxpayers. . .

Defense is very important, I don’t disagree, but there are varying kinds of defense. Military and force options for defense are a deterrent. They should be the option of last-resort, but recently they have been front and center for much of our foreign policy actions. It perpetuates a circular effect; You have to have MORE defenses against the people you’re fighting against, because you’re making MORE enemies DEFENDING from those enemies. We have a HIGHER number of active terrorist groups AFTER the 9/11 incident than before. How does one exactly “WIN”  a War on Terrorism??

Sigh. . . nazism and fascism were defeated by the use of force - even so far as the unthinkable nuclear bomb, but militant Islam, people who blow up their own children, will be defeated by diplomacy and making friends. I’m not sure how we make friends with the Taliban and and Ahmadinajad. I also remind you that we were attacked on several occasions prior September 11th.

Civil Defense - Again, the question is “protect against WHAT exactly”. More money for police and fire fighters isn’t a bad idea, but what exactly is the Department of Homeland Security providing that wasn’t there before, or is needed now?? It’s all scare-tactics to keep people voting for the ‘right’ party (no pun intended).

I don’t consider Homeland Security to be civil defense, but you obviously believe that we have nothing to fear from terrorism. I personally don’t mind contributing to Homeland Security, I have some ideas on how it could be better accomplished, but it is hard to argue with success. . . so far. . . knock on wood.

The bottom line for me is that I believe that most problems are solved better by those close to home. Washington D.C. cannot spend my money more efficiently than my state or my hometown - or me. 

The reason that taxes are so important is because, for some of us, they constitute one of the largest portions of our family budgets. My family will pay more in property taxes this year than we will spend on food. I encourage you to add all the taxes that you pay. Social Security, medicare, capital gains, sales tax, property tax, federal income tax, state income tax, local income tax, communications tax and more. Then think about all the hidden taxes you pay - remember that every time you buy gas or food or clothes, you are also paying the taxes of the retailer and the manufacturer and the shipper. . . Just think what might be possible if you could keep more of that money to save, invest, give to those in need or to reduce your debt.