Inflation through Taxation – Eli Stone

If, from the more wretched parts of the old world, we look at those which are in an advanced stage of improvement, we still find the greedy hand of government thrusting itself into every corner and crevice of industry, and grasping the spoil of the multitude. Invention is continually exercised, to furnish new pretenses for revenues and taxation. It watches prosperity as its prey and permits none to escape without tribute. Thomas Paine, The Rights of Man, 1791
The fast approaching sales tax increase for Woodland Park is coming on hard, but that still puts Woodland Park a percentage point below Colorado Springs. It also means that you have one percent less buying power in Woodland Park. I don’t think government looks at it like that but then government knows what is best for you and me, and how to spend our money best. I find it kind of funny how the voters were lured into voting for the increased sales tax with the prospect of a reduction in their mil levy property tax. That probably isn’t going to happen as the language in the ordinance is “hopeful” at best. They could give it to the property owners then do a revaluation of the properties and at least make it appear all nicey nice. But we should rejoice at all the better things government will provide for us. I’m not sure what that will be, but I am sure that it will be awesome.
Then we have Amendment 69 coming down the pike. This one is an absolute awesome prospect. A ten percent increase in income tax for everyone. But hey, then you will get FREE medical care. I wonder how many doctors will stay in the state when medical prices are saddled with a strangle hold. So the proposed amendment reads as follows;
Shall state taxes be increased $25 billion annually in the first full fiscal year, and by such amounts that are raised thereafter, by an amendment to the Colorado Constitution establishing a health care payment system to fund health care for all individuals whose primary residence is in Colorado, and, in connection therewith, creating a governmental entity called ColoradoCare to administer the health care payment system; providing for the governance of ColoradoCare by an interim board of trustees until an elected board of trustees takes responsibility; exempting ColoradoCare from the Taxpayer’s Bill of Rights; assessing an initial tax on the total payroll from employers, payroll income from employees, and nonpayroll income at varying rates; increasing these tax rates when ColoradoCare begins making health care payments for beneficiaries; capping the total amount of income subject to taxation; authorizing the board to increase the taxes in specified circumstances upon approval of the members of ColoradoCare; requiring ColoradoCare to contract with health care providers to pay for specific health care benefits; transferring administration of the Medicaid and children’s basic health programs and all other state and federal health care funds for Colorado to ColoradoCare; transferring responsibility to ColoradoCare for medical care that would otherwise be paid for by workers’ compensation insurance; requiring ColoradoCare to apply for a waiver from the Affordable Care Act to establish a Colorado health care payment system; and suspending the operations of the Colorado health benefit exchange and transferring its resources to ColoradoCare?
So what does this proposed amendment really say? Well to start with the system wants to raise $25 billion dollars annually through taxation, while that is only about $4716 and some change per person, it is very fair in that for a person who makes $20,000 per year they will only pay $2,000 in additional taxes while those pesky rich people, say someone who makes $1 million dollars will pay $100,000 in additional taxes. Now that’s a way to help stop Colorado from growing. With such an effective plan for a healthcare system I can see those who are rich leaving the state and a lot of the less affluent moving to the state. Maybe. Probably won’t be good for business. It will effectively reduce proceeds for local taxes by ten percent as people’s buying power will be reduced by ten percent.
Now for the really disguised hook in this one….” and by such amounts that are raised thereafter” means that additional taxes as the board of trustees sees fit under a . Wait, there’s TABOR! Oh, that’s right the bill also says ; “exempting ColoradoCare from the Taxpayer’s Bill of Rights” and “authorizing the board to increase the taxes in specified circumstances upon approval of the members of ColoradoCare”. Well isn’t that just peachy. So a board of directors can just arbitrarily raise your taxes whenever they deem necessary. Talk about a chance for graft and corruption, well there it is. You think the Brexit caused economic turmoil, just wait and see what this wonderfully oppressive tax will do to the state and local economies.
The democrats here in the state tried to push through a bill that would fine any business that paid less than twelve dollars per hour to their employees. The democrats view was that the business owners would either just pay the $12 and hour to their employees or pay the fine of $1 per hour per person that made less than $12/hour. That’s because if you make $12 an hour full time you don’t get Medicaid. Yup, those pesky rich business owners would just pull out that magic pot of money they keep in the office and pay up with no impact on prices, no impact on the economy, and everyone will be happy. Especially the bleeding hearts that think everyone should be the same regardless of how much they put into or pull out of life. Okay, being serious for just a moment, businesses take all taxes, fees, cost of insurance (and the list goes on extensively), and roll that into the prices of whatever they sell and the consumer foots the bill. It is very simple economics, a business cannot survive paying out more than it takes in.
I wonder how many large corporations will pull up stakes and move on to more lucrative pastures if there are any left out there.
I think it is time for a change to the Colorado Constitution. That change needs to be that no Amendment can be passed by simple democratic vote, but that it would require a two thirds majority of votes in each county and then it must win by two thirds of the counties within the state. The front range population has a stranglehold on pushing through onerous and oppressive measures on those who live in the mountains and pretty much just want to be left alone. It is time for some changes, and that change needs to be more restrictions on government and everyone’s attitude that “the government” needs to do something. I can see our economy going to hell in a hand basket if Amendment 69 passes.
In news on the national front, Charlie Rangel was found guilty on 11 of 13 counts of the corruption charges that were brought against him. But on an up side, Obama’s immigration reform plan bit the dust, no gun control measure was passed, and Britain decided to check out of the European Union.
Remember this about LAW, ORDINANCES, and REGULATION. Saying that something is illegal is not an argument against that thing. It is an appeal to authority. Laws are an arbitrary judgement made by whoever has political power and sway at the time. Laws are a means for a government to regulate the people in the way that the government sees fit but that does not make those laws a universal standard for morality. The people who constitute government are more inclined to look out for their own self-interest as long as it means that they stay in power and are often willing do so by whatever means necessary. Remember, there must be some level of taxation to which we all must pay toward the betterment of nation and our community. But you cannot make all men equal in their status by taxing the poor into prosperity or the rich into poverty, you can only accommodate the equal sharing of misery. So as taxes build a veritable government utopia, remember, the reduced buying power is called inflation.
“There is no part of the administration of government that requires extensive information and a thorough knowledge of the principles of political economy, so much as the business of taxation. The man who understands those principles best will be least likely to resort to oppressive expedients, or sacrifice any particular class of citizens to the procurement of revenue. It might be demonstrated that the most productive system of finance will always be the least burdensome.” Alexander Hamilton, Federalist #35