Tuesday, April 22, 2014

Tax Day Travesties and Facts, Part 2

This is our second post regarding how much we paid in taxes last year and how little we received in return from the American political class for those taxes in both the quality and quantity of government services. The first post from yesterday can be accessed at:


We will be showing in these tax day posts that we have truly moved from a state of heavy taxation into a state of tax oppression. Many Americans’ Tax Freedom Day, that day of the new year when we stop working for all forms of American government and start working for ourselves and our families has not even occurred yet. Almost four months into the new year.

And what we do get from the political class in the form of government programs and support is usually inefficient, ineffective, criminally targeted and often make the original problem worse or create new problems for Americans via unintended consequences. The tax insanity continues today with the following random facts about taxation in America and how it is often no more than highway robbery.

1) Consider what some of your tax payments bought for you and the country last year, as documented by the Watchdog.org organization:
  • An $876,752 study on snail sex - A University of Iowa study is trying to figure out if it’s better for snails to reproduce sexually or asexually. Finally, an answer to the question everyone has been asking, a question that has absolutely no bearing on the lives of 99.99999999% of Americans.
  • A $16 million tropical vacation - That was the final price tag on President Obama’s most recent holiday vacations to Hawaii and Africa.
  • A $750,000 study on how kid cartoons contribute to obesity - The National Science Foundation awarded two grants totaling $750,000 to find out if cartoon characters are making children overweight. No, eating too much junk food is making kids fat, not getting enough exercise is making kids fat. I could have answered the question for far less than $750,000.
  • A $2.4 million program to develop “origami condoms” - It includes male and female versions and the “first of its kind anal condom.” There is a joke about screwing the taxpayer somewhere in here.
  • A $30,410 “beauty salon” in a Federal prison -At least it’s a women’s federal prison.
  • Millions in drugs for prisoners -Medicare sent millions in improper payments to incarcerated criminals. In other words, bilking Medicare is so easy even prisoners behind bars can do it and not get caught.
  • A $98,670 outhouse -The Federal Bureau of Land Management may have just built the most expensive outhouse ever at the Swede Park Trail Head in Alaska.
  • $700 million of Obama Care promotion -Despite President Obama’s claim that the government did not “make a hard sell” for Obama Care, his administration spent nearly $700 million to promote the law. Another Presidential lie.
When you wrote your income tax check to the IRS last week, some of that money you earned went to pay for idiotic programs like these.

2) The best way to grow the economy is for private business owners to expand their operations and grow their businesses. However, any distraction that keeps them from doing that, e.g. filling out tax forms and returns, hinders their ability to do that very important task. According to the U.S. Chamber of Commerce, the average small business owner spends 80 hours each year complying with U.S. tax regulations. 80 hours a year, the equivalent of two 40 hour work weeks. 4% of the entire year is spent just on filing small business tax forms on average.

This is time that the average business owner cannot use to look for new markets, develop new products, train his staff, take better care of customers, all activities that would eventually help us all by expanding the economy. Instead, he is sitting down and laboriously trying to stay legal in the face of a Federal tax code that is over 70,000 pages long. 

In light of this oppressive task, the Chamber calculated what one could do if they were given an extra 80 hours a year. Turns out, you could do quite a bit.
  • You could complete 17 marathons (if you run the U.S. average pace of 10:34 mile/hour). 
  • You could go around the world 1.7 times (on a commercial jet) or twice if you were on a military jet. 
  • You could go to the moon 4.8 times (if you traveled on NASA’s New Horizons Pluto mission). 
  • You could cook 14.5 perfect 20-pound turkeys (unstuffed, and back-to-back for 5.5 hours each, not simultaneously) 
  • You could watch all eight Harry Potter movies four times.
  • Or, if you are a small business owner, you could complete your 2013 taxes.
A new survey of small business owners by the National Small Business Association (NSBA) reveals that more than half of small employers say the administrative burdens and paperwork associated with tax season pose the greatest harm to their businesses. One in four business owners surveyed said they spend at least three full weeks on the annual chore. How sad is it when the American political class is the greatest source of harm for American small businesses?

If it is any consolation, a tax analysis by the American Action Forum found that even the Treasury Department and IRS are also buckling under the administrative burdens of tax season:

[T]he Department of Treasury’s paperwork burden is at its highest level in history. At more than 7.8 billion hours, Treasury’s paperwork budget has increased 1.5 billion hours since FY 2010, or 19 percent. Since 1995, the earliest year AAF could compile data, Treasury’s burden has increased 47 percent.

A 19% increase since just four years ago is a great measure of how out of control the tax system is in this country. It is a system that is robbing the economy of vibrancy and wealth and overburdening an already overburdened bureaucracy. In other words everyone, consumers, businesses, IRS are choking on the tax code with no substantial benefits.

The NSBA report also found that a the clear majority of small businesses (67%) polled by NSBA support broad tax reform that will reduce corporate and individual tax rates coupled with reduced deductions. This thought and feeling was recently captured by the Chamber’s Chief economist Marty Regalia: 

Comprehensive pro-growth tax reform is the major key to jump-starting the economy, promoting job creation, and ensuring long-run improvement in productivity, wage growth, and our standard of living. It can help us maintain our competitive edge in the global economy and address some of the problems in income and wealth distribution. Moreover, it is an absolutely necessary component to getting our fiscal house in order.

Now, all we need to do is educate the American people, elect a Congress that can work together for the common good, adopt a common goal, and convince the president that leadership sometimes requires the courage to get out and stay out in front.

Work together, common good, common goal, leadership, courage. Good luck with getting those attributes from the current set of politicians in Washington. These are the same people who gave us a tax code with over 70,000 pages in the first place.

3) We have been discussing how we get very little back in quality services from the Washington political class despite being placed under oppressive taxation. But sometimes we get absolutely nothing back for the tax check we wrote last week as shown by the fact that the State Department has allocated $1.5 million of our tax money for job development programs in distressed neighborhoods….in Belize. 

We are not going to spend money to help the over 20 million Americans who are either underemployed or unemployed. We are not going to help the hundreds and hundreds of distressed neighborhoods in the U.S. We are going to help distressed neighborhoods and unemployed people in Belize. I challenge anyone to find Belize on the map, never mind sending them $1.5 million an amount that probably will not make any difference anyway, given it is so small.

Specifically, the State Department Belize program has the following objectives:
  1. “The proposal will confront the root causes of violence and crime in a creative and effective way and seek to create positive cultural and social conditions, which are the foundations of a peaceful and orderly society.” Sounds like BS and even if this was achievable, wouldn’t starting in U.S. cities like Detroit or Camden be a far better return on American taxpayer dollars? They certainly need the foundations of a peaceful and orderly society to be created in these decaying American cities.
  2. “Root causes in Belize include, but are not limited to, the lack of economic development, the lack of skills and/or tradecraft, the lack of conflict resolution skills, and/or the lack of opportunity for youth.” Again, substitute Detroit, Camden or a hundred other American towns and cities for the word Belize and the statement would hold true except that it would intend to help Americans who are suffering.
  3. “Marginalized youth are empowered when given a voice and opportunities. Equipping marginalized youth and their communities with economic opportunities and/or business training can help them reach their true potential as entrepreneurs and improve citizen security.” The current unemployment rate for American youth is almost 21%. Shouldn’t they get first crack at reaching their true potential?
Thus, you can rest assured that your tax money and belated Tax Freedom Day are helping out needy people in Belize, where ever that is.

So let’s review. Your hard earned money and ever growing Tax Freedom Day pays for such vital services as origami condoms and the intimate sex knowledge and lives of snails, it hinders small businesses from growing their businesses and economy as result of an onerous task of just completing the marathon tax forms and understanding a voluminous tax code, and it sends the money collected during tax seasons to far away places like Belize, not even trying to deliver quality government services and support to the very people who paid for it in the first place.

You cannot make this idiocy up and the sad part, we still need another day to complete the tax season shuffle of insanity tomorrow.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:

Term Limits Now: http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.robertringer.com/
http://www.youtube.com/watch?v=08j0sYUOb5w




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