Sunday, July 31, 2011

Hey, Those Apples Are Tax Breaks Too.

It looks like the Tea Party, in fact the whole Republican Party, in fact even a bunch in the Democrat Party, in fact even the President don't seem to realize that when you cut entitlements, it's actually a tax increase for the folks who were beneficiaries of those entitlements. Take Food Stamps. Food Stamps are an aid to folks who are below the poverty level who have difficulty affording the basic necessities of life. It provides funds to buy food. They can't buy a new car with them, or even the newspaper. It won't pay for a lawn service to groom their yard. They can't go to a slots parlor or the race track with them. Food Stamps are strictly for food. No, not even paper plates. But if you cut Food Stamps out of the budget to help solve the debt crisis, those folks on Food Stamps loose a substantial part of their income. Just like higher taxes do to a rich man. Of course poor people don't get referred to as job creators. So I guess they don't count. Poor people can't afford to donate large sums to political campaigns or PACs so nobody listens to them. They can't afford high priced lobbyists, in fact they can't afford minimum wage  lobbyists, so I guess their story doesn't get told in Washington. But the bottom line is that if Washington cuts only entitlements, some folks get hurt. Mostly folks who can little afford to get hurt, while wealthy fat cats continue to enjoy the good life. Well here's a thought I had a while back. Give the rich folks all the tax breaks they want, and allow the Bush tax cuts to continue, but tie it all to job creation. If you create additional new jobs totaling your tax loopholes and breaks, you get to keep it. If you don't create those jobs, you get to pay it. With interest. And penalty. See the thing is that these folks know very well, that they won't create any new jobs unless there is increased demand for the products and services they provide. So nobody is going to create jobs until lots and lots of people with a little spare money start buying those products. And everybody knows the rich aren't going to spend those tax break dollars. They haven't in the past. There's no reason to believe they will in the future. Especially in the quantities needed to increase demand. So if the poor have to cut back some more, then the rich need to also.

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