The Inefficiency of Targeted Tax Policies

The Inefficiency of Targeted Tax Policies.

I was watching the news over the weekend and the democratic grand poo-bah was promoting targeted tax cuts.   I listened and then figured out what he is really saying.  “We want to take the money away from those who saved and invested and actually were successful  in business and give it to those who weren’t and aren’t”, classic wealth redistribution.  Remember our government always, always takes a cut of any money that crosses their desk.  Where’s my free Cheese!

If you play by the rules pay your mortgage leave within or beneath your means and live  blessed by God with income over $250,000.00 and year you will be singled out and punished.   You are being told you do not deserve what you have and it will be taken from you and given to others that are deemed more deserving.  In the interest of making things fair?  Fair for whom.  Who want’s to work hard when you never never get to enjoy the benefits of excelling at anything.  Businesses already make decisions based on making money.  The benefits we reap are employment and opportunities  to save and invest our profits in the hopes of retirement  30 or 40 years down the road.

Our government promised benefits to the employees who serve us and then failed to fund those benefits for years spending the money on other shiny new things.  Now our public employees have worked and based their retirement on the promise of benefits that were not funded.  So they face the same conundrum that all Americans face as social security monies were spent on other shiny things.  States are facing the same situation as if they played their political games with the budget.  I too once had a promise given by a company of a future benefit in lieu of a pay raise.  Delta air lines went bankrupt and I as well as all employees lost millions of dollars promised if we took pay cuts to ensure the company stayed in business at an earlier time.

Talk about putting all of your eggs in one basket?  What to do?  Take what is funded and divide it amongst the employees that are on the books including the retirees.  Those who gamed the system with spiking.  So sorry charlie your check is now re evaluated based on number of years served and the average pay of your class and craft subtracting the 3 highest and three lowest years of income of the last 15 years of employment to ensure and average that is beyond spiking.  this will right the ship evenly as we can.  It is not fair.  Life rarely is.  You may have to reassess your retirement plans like all of us will when social security implodes unless we stop stealing from ourselves.  Guaranteed health benefits are gone too.  HSA’s and having some skin in the game will greatly improve how monies are spent when you get to manage it for yourself with your own dollars.  Government should reflect of the people without creating a distorted view that a unionized governmental system can.

I remember negotiating wage concessions at Western Airlines.   Our “union”  told we had to take  33% concessions and layoffs to help the company survive.  After we signed the contract.  The mechanics signed a much better deal without and wage concessions but work rules changes that “equaled”  our contribution with any layoffs.  Many of my colleagues took a second job or left the industry.  Shortly Western started turning a handsome profit and were absorbed by Delta who after saving us from our union mismanagement doubled our wages in two years and gave all of the new non union mechanics a job offer.  “In Atlanta”.


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