Index for Insanity, Inc.
Sales Tax Increases, Bonds and other Hidden Tax Increases
Nearly every election there are several measures which are really hidden tax increases and typically those increases are for things which you don't know about.
Most people want more police, fire and education and other such things. The politicians know this. They also know that they can get people to vote for these things, but the reality is that these propositions are really hidden taxes increases for other things. Why? When you read the propositions, do you ever see that the general funding is guaranteed? Of course not. What generally happens is that they raise the taxes for things that people will vote for, but then reduce the general funding so that they can spend it on other things. In the current Los Angeles election there is a proposition which will increase the sales tax by 1% for police. Already the current police are demanding a pay increase due to this. What do you think that this will mean? What do you think will happen to the economy with a sales tax of 9.25%? I doubt that most people realize just how much it will cost them, but they will sure see their money go faster or they will drive to other counties to avoid the tax.
In your own life, do you ever have enough money for everything that you want? Of course not, but you set priorities and decide what is most important to you. If you wanted to get something, I doubt that you would go to your boss and demand more money so that you could buy something, yet that is what the government does. There should NEVER be a tax increase for the high priority items because those things should get the money first. The problem what that concept is that the people would never vote for the tax increases for the perks and other wasteful spending, so the politicians would never allow that.
In addition, what is often attempted are hidden tax increases which are called bonds. Hopefully you are not one of those people who buy whatever they want and put it on their credit cards, but if you are, take a look at the interest you are paying. In the end, you are spending far more money for the item because you want it now, rather than saving for it. This is what the bond is doing. Someone has to pay the interest and guess who it is? We, the people, well, all the people who pay taxes. Take a look at the numbers and you will see that the bonds can double the cost.
Think before you vote and realize that any tax increases are really increases for other items. Don't be fooled by all the lies and deception of what they claim will happen.
Update: Jamie Lee Curtis is doing an ad to promote a bond issue. In it she says that it will not raise taxes, it will save lives. Quite a tug on human emotions, but just where does she think that the money will come from? While it does not directly increase taxes, it forces all the people who pay taxes to pay back the bond, half of which is interest and does not go to helping anyone except those who are making money on the bonds. To me, this is very deceptive, to say the least.
How do you double the cost of something?
Create a bond (or use your credit card) to pay for it.
Index for Insanity, Inc.
If you want to submit your own article, please read the first article and send email