Do you know how much you owe?
I’m not talking about your personal budget i.e., your house and your car. I’m talking about your debt as a citizen of the United States America. Did you know that you owe $54,000? Every person who is a citizen of our country owes this amount; every man, woman and child. If you have a family of four, your total household debt for your government services is $216,000 and is growing every second.
What’s that? Did you say you didn’t order any government services? Directly, I’m sure you didn’t, but indirectly, through our political system, you did.If there’s one thing I want you to remember about our country it’s that it is a representative democracy; which means “we the people” have a government by the people and for the people. We elect representatives and they do our bidding; we are responsible for what they bind us to.
Spending time in a checkout line is by no means anyone’s favorite pastime. Exchanging a $20.00 bill for a plastic bag filled with items you’ll have to buy again tomorrow just isn’t fun. We all go through this spending exercise because we have to; not because we want to. Humans are consumptive and must be fed, clothed, and sheltered on an ongoing basis.
As a community of people, we have set up institutions inside our governments to provide us with other ongoing needs we as individuals could not provide on our own, namely; common defense and justice. These institutions must be funded on a perpetual basis and are consumptive in nature. The fact is all government spending is consumptive.
Now about that $54,000 each of us owes. This money has already been sent to provide government services from the past. If we want to have these services today and tomorrow we must pay an additional $11,875 each for this year. So, if there are four people in your household that would be $47,500.
You may be wondering how it’s possible for you to pay your $11,875 per each person in your household when the average household income in 2012 was less than $52,000, and the $11,875 does not include any of your essential day to day needs, or state and local taxes. It’s called a progressive tax code.
In a nutshell, a progressive tax code means: the more you make the more you pay. The laws supporting the tax code are a lot like many of our other laws in America.Through time and through manipulation of politicians, they yield little intended consequences and many unintended ones. The internal revenue code is said to be so large and complicated that no one could possibly understand it much less follow it.
The unintended consequences of the tax code are found in the general spending habits of the upper income brackets. A rich person and a poor person have the same basic needs for survival. Though the rich person may consume their 2500 daily calories with caviar or drive a Rolls Royce, there just isn’t enough price difference to consume all the money a rich person will make. The phrase, “it doesn’t matter what you make, it’s what you keep that counts,” this phrase is what a rich person is most interested in,(what they keep after expenses and taxes).
There are only two ways to make money. One is to physically engage in a labor or activity,and the other is to have money make money,(usury). For most people,trading their time and skill set for a wage or salary is the predominant way they provide for their needs. If there is any money left over, it will go to their retirement fund. It will make a little money, but not anything comparable to what the rich will do with their extra money.
The “bottom line” is what these rich investors are looking for; the amount they get to keep. If they invest a million dollars, they want the highest rate of return for their million. If it’s 100 million, they expect even more percentage wise. Those unintended consequences are when those needing these investors to capitalize their products or services pay the usury. That usury is passed on to the consumer of their products. The cost of using the money of the wealthy is paid by the poor.Thus, the rich get richer and the poor get poorer.
When you hear politicians say they’re going to raise the taxes on the rich, what they are actually doing is using the rich to collect the taxes. The rich will pass their increased tax burden on to the consumer of basic needs either directly through products their companies make or indirectly through usury and usually both. Remember, they calculate from the bottom line. Everything else is the price of doing business and that is passed on to consumers of which we and “we the people’s” government are.
Our bottom line: In reality the United States of America does not have a progressive tax code; it has a hidden consumptive tax. The 17 trillion dollars of debt is simply the amount of money the government has not been able to filter through to the consumer. That’s why our government continues to urge people to consume, because if they don’t spend at a rate faster than the government, the debt will continue to rise.