Stop Pulling the Wagon

I would love to wake up some morning and turn on the news without hearing the President or some member of Congress tell me of the latest plan to fix something that I wish they would just leave alone.

Thats not to say that there are not things that need to be fixed.  For example, why not “fix” deficit spending?  This is a very real and  growing  problem which surely  will at some point come crashing down on us in the form of very high, possibly, hyper-inflation. Can they even spell Zimbabwe?  And, it could be “fixed”.  We just need those in charge of Government to commit to not spending more than is actually in the “bank”.  You know, like the rest of us have to do.   What a concept!

Here is another one.  Why don’t they “fix” the current 10.2% unemployment problem?  They could do this if the Administration and Congress would help create an environment where those who create the jobs are less afraid of Government interference.  As it stands now any prospective employer must be fearful that Government will dictate who you can hire,  who you can fire (lawyers ready to pounce),  how much you can pay, Environmental Regulations, Healthcare “Mandates”, permits, fees, licenses, etc.?   A real gauntlet.

And, if you comply with everything, obey all the rules, pay all the fees and manage to make a “profit” (a dirty word to Barney Frank and others), then you are looked on as greedy, evil and a target to be punished by having most of what you worked so hard for confiscated (stolen) in taxes.

What incentive does a prospective employer have in a business environment where each new day he/she hears in the news about proposed new Employer Healthcare requirements and taxes,  Cap & Trade (Cap & Tax) regulations and other Government plans to “fix” things.

And all of this from a bunch that could not even efficiently run the Cash For Clunkers Program (actual cost to Taxpayers in excess of $40,000 for every car sold!).  The only thing that government seems to excel at is Corruption, Fraud, Waste and Mismanagement.  What do you expect when the Chairman of the House Budget Commitee (Charles Rangel) is an admitted Tax Cheat?

In my mind, Congress and the Administration is best thought of as a Disorganized Criminal Enterprise.  If they were organized at least they might avoid deficits.    

Bob Bandy 

 I once had a friend of mine tell me that people do their taxes all wrong.

When I asked him what he meant he said “they start at the top of the tax form and work their way to the bottom to see how much they owe.”  “What they should be doing is starting at the bottom with the amount of refund they would like and work there way to the top filling in the lines to accomplish their refund goal.”

He was joking but there is a truth here.  Too many of us live our lives in the way he described.  We fill our lives with a lot of “stuff” we have to pay for and then enslave ourselves into making the money to do so.  In the process we arrive at an income level (the “bottom of the form”) and become the victims of whatever taxes the government wants to impose on us.

There is another way.  Find out how much non-taxable income you can have before the government wants to start taking its “cut”.  Keep in mind that the government has decided not all income is taxable.  Now plan your life in such a way you decide how much tax you are willing to pay.  Live your life accordingly.

You can live very well on a low tax, or no tax, income level with a little planning and thought.  And, you can be in charge and making these decisions about your life.

Its legal because you are playing by their rules.  And, as a bonus, you do not become the slave of the government and a lot of “stuff” you don’t really need and, truth be told, may not really even want.  In other words, do you own your “stuff” or does your “stuff” own you.

Keep in mind that while tax evasion is illegal, tax avoidance by legal means is not.

I think of it as a game.  And if I play the game right, I can lighten the load in that wagon the government wants me to pull.  Worth thinking about.  

Bob Bandy

Cartoon by Syl Mateo

I have a question.  Are those who “serve” in Congress really as dumb as they seem to be?  Or, Do they just not care? 

Deficits in the Trillions of Dollars can only be paid for in one of two ways.  (1) Inflation, which is another way of saying devalue the dollar.   At the current rate of growth in the debt, hyper-inflation is a possibility.  In other words your current and future savings go “Poof”.   (2) Bankruptcy.  An ugly word and not a truly workable solution on  a Federal Government level.  Governments have a way of avoiding the word Bankruptcy by printing money.  In other words, inflating their way out of debt by making the Dollars they owe worth-less and less and less.  Refer back to option (1).

For those who think this debt can be paid with future taxes I would only point out that we are reaching the point where just the interest on the debt will eat up a very large percentage of any expected tax income.   That takes money away from things like Education, National Defense, Medicare, etc.. 

Think about it on a personal level.  If an individual or family increases his/her/their debt (cars, boats, R.V.’s, credit cards, whatever) eventually a point is reached at which just the interest on that debt exceeds the available income.  What are the options when this point is reached?

For too long Congress has simply “kicked the can down the road” with gimmicks and “creative” accounting to future generations.  Our future generations.  Our children and grandchildren.  Well, the end of the road is near and what is Congress doing?  Borrowing more and more Dollars from lenders (the Chinese, Japanese and others) who are becoming more and more concerned about our ability as a nation to practice fiscal discipline and repay our debt.  What is Congress’ plan if they decide to stop loaning us Dollars?

Is a financial Armageddon unavoidable or is there still time to change our ways as a nation?  I always want to have a positive mindset but I believe the clock is ticking and we need to change those in power or they need to change their ways very soon.  Looking at what is happening in Washington DC, I am not confident that will happen.  I believe we need to act financially on our own to protect ourselves and our families from what seems more and more inevitable.     

Bob Bandy

I hope I am wrong but am afraid I am not.

It seems to me that our Congress and Administration is  in the process of doing something Osama Bin Laden tried, but failed to do when he planned the destruction of the  Twin Towers of the World Trade Center.   One of Bin Laden’s major goals was to severely damage, and he hoped, destroy our economy.

Our Government (Administration and Congress)  is now exploding our national debt by spending something like one hundred and eighty five percent of revenues.   In addition they are in an ongoing campaign to destroy what is left of the economy through Government run Health Care, Cap and Trade and other wasteful “Boondoggles”.

They are running up a crushing debt that our children and grandchildren will have to face as either ruinous taxation or hyper-inflation or both.

As POGO said:  WE HAVE MET THE ENEMY AND HE IS US.  (Walt Kelly)

Osama Bin Laden just might be laughing himself silly in a cave somewhere.  We are doing it to ourselves!

Please tell me I am wrong!

Bob Bandy 

I am seriously concerned that our culture lacks the collective self discipline to survive.  Let me explain.

It is my belief that at some point the number of individuals who want to live without rules, responsibility or consequences for their actions  may reach “critical mass” and our great experiment with self government may decay into anarchy and chaos.

I do not know what that critical mass is but I suspect that five percent of our population cannot support the other 95 percent.  The “math don’t work”.

Think about it.  Most of the worlds great belief systems are founded in personal self discipline.  Success in almost all endeavors  requires we apply discipline to achieve goals.  Consider Business, Academics & Sports.  Am I wrong?

Bob Bandy