Friday, August 21, 2009

The Real Rate of Taxation

The real rate of taxation is whatever the government spends. Sooner or later, every single dime has to be paid for in taxes. We can pay it now, or we can pay it later, with interest.

An economy based on debt and consumption can't last forever. What can we do as individuals?

Pressure our political leaders to quit with the pork and balance their budgets.

Lose the idea that we're entitled to housing, medical care and retirements paid for by anyone else.

Reduce consumption.

Interesting aside: I'm laying over in New York City. Just took a walk through Chinatown. A couple guys were sitting on a sidewalk putting soles on shoes. Next to them were stairs going down and an open door into a room filled with kids putting soles on shoes. It was like something from a movie. I didn't think stuff like that went on in this country.

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