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Monday
Feb182008

How Will the Election Change Our Taxes?

February 19, 2008
Category: Q-and-A Club, Exploring Social and Political Issues
By Arlene Harder, MA, MFT

THE TAX-AND-SPEND GAME — INTRODUCTION 

quarterly-taxes-1.jpg

“Change” is the operative word in the presidential campaign this year. But what is supposed to change? Who is supposed to change? You or me? What values and priorities might create the change we say we want? And most of all, what effect will change have on taxes and the government programs those taxes are supposed to fund?

After listening to candidates call for change, hope, and unity, I am dusting off a Tax-and-Spend Game that I created a few years ago. It won’t be available until next week, but this Q-and-A Club blog entry will get you started thinking about the topic before you start the first category of questions, which will be on education.

The game is designed to help you explore what you want done with your taxes, and the other guy’s taxes. Who should pay more? Who should pay less? Who should receive more services? Who should receive less? In other words, if change is the byword of the day, there will be a change in whether we spend more taxes or fewer taxes. Change will determine which services will be expanded and which will be reduced.

A Very Few, But Important, Statistics

Now, before you run for cover in fear that the game will cause your eyes to glaze over and you’ll need to get out a calculator, let me assure you that I offer you no statistics except the following (but hold onto your hats!):

The proposed national budget for the next fiscal year is based on an estimated revenue of $2,662,000,000,000. That’s 2.662 trillion in taxes if the zeros are too hard for you to count.

Expenditures for the same period? $2,902,000,000,000. 2.902 trillion in expenses takes up less space.

If I’ve done my math correctly, that leaves a deficit of 239 billion!!

That doesn’t include Iraq and Afghanistan expenditures. And according to the National Priorities Project (see description below) the cost of Iraq alone is $275 million per day, or $4,100 per household.

NOR does it include state and local budgets, which our tax dollars also support.

Who Got Us Into This Mess?

I can’t get my mind around figures that huge. Can you? One thing I do know is that the numbers represent our collective willingness to spend more than we take in. They remind me of the words of the philosophical classic comic strip character Pogo. We can paraphrase him by saying that “we have met the enemy“—that is, taxes—”and he is us“—that is, our reliance on government to fund and regulate a wealth of services that extend beyond our desire to pay for them.

If America is to truly change and become a country more united in values and principles than it is today, we will have to have a serious discussion (many discussions, in fact) about what we want to change and how. We will have to talk about those taxes we don’t want to pay and the services we want to continue using.

Unless we are willing to dig into the whole mess of taxes and the programs they fund, we will continue to succumb to thirty-second sound bites that make us feel comfortable by oversimplifying complex issues and obfuscating how unbalanced our government’s income and outgo has become.

How Would YOU Balance the Budget?

It is a safe bet that we can achieve change most easily if we all take a closer look at the balanced-budget fiasco and the role we play in asking for more than we want our taxes to support. That means me. That means you.

So what would happen if YOU were given sole power to balance local, state and federal budgets while providing basic services, balancing the budget, and repaying the national debt? Do you think you could do that? You’d have to decide how spending should be allocated. You’d have to decide who should pay for what services. You’d have to decide what local, state, and national programs should be cut, reduced or eliminated.

That is what the Tax-and-Spend Game gives you a chance to do. It isn’t difficult, but it also isn’t as simple as saying “I will balance the budget.” No, you have to make some choices. Begin with asking yourself the Q-and-A Club general questions about taxes and spending below to stimulate your thinking. Then read the Rules of the Tax-and-Spend Game — where you can learn how to enter into a drawing for a new book — and begin your decisions about taxes with education, the first of eleven sets of questions for the Tax-and-Spend Game.

At the bottom of this page you will find some websites that can give you some understanding of the complexity of state and national budget decisions. 

To win the game you must:

1. Reduce two programs from which you currently benefit — or increase taxes

2. Reduce at least ten programs significantly or eliminate five programs entirely — or increase taxes

3. If you choose to increase spending for any program, you must eliminate spending on two additional programs — or increase taxes.

Read the rules of the Tax-and-Spend Game to learn more about how you and your friends can play this exciting new game.

Ask Yourself Some General Questions About Your Attitude Toward Government Programs and the Taxes We Pay to Support Them

mark-red-1.gifIf I want government programs to be decreased in order to reduce taxes, but realize their importance to the community, what can I do so those services can be provided by the private sector?

mark-red-2.gifWhat can I do to make a significant difference in the way our taxes are allocated?

mark-red-1.gifWhat can I do to help others see my perspective on government programs that should be maintained, decreased, or increased?

mark-red-2.gifHow much of long-term indebtedness should we acquire for projects that will benefit people in the future, as well as citizens today, such as roads and bridges? Why?

mark-red-1.gifDo I want our government to borrow money to pay for services we only use today?

mark-red-2.gifHow much indebtedness caused by borrowing should we leave for our children to pay? And for what?

mark-red-1.gifWhat responsibility do others have to help themselves? Why?

mark-red-2.gifWhat responsibility do I (and other taxpayers) have to help one another? Why?

Publisher’s Special

If you order Ask Yourself Questions and Change Your Life from the publisher, Personhood Press, before March 30th, you will not only pay $12.95 instead of the normal price of $14.95. You will receive it before you could buy it in bookstores. The book will be sent before the end of March, but will not be available in stores until May. So if you don’t think you’d like a free e-book, use this publisher’s special for a very good price for a very good book.

A Few Resources on the Budget

Hundreds of websites provide information about taxes. Here are five to get you started:

The California Budget Challenge is an interactive game that demonstrates the difficult decisions elected officials must make in weighing the needs of a broad constituency. It allows you to see how your decisions compare with others. Even if you’re not from California, you will find it to be a valuable exercise.

Death and Taxes” is an exceptional graphic poster of the 2008 federal discretionary budget proposed by the president that will be debated, amended, and approved by Congress by October 1st to begin the fiscal year. It contains over 400 programs and departments and almost every program that receives over 200 million dollars annually. I wholeheartedly recommend you view it.

The Center on Budget and Policy Priorities is one of the nation’s premier policy organizations conducting research and analysis to inform public debates of proposed budget and tax policies. It wants to ensure that the needs of low-income families and individuals are considered in these debates.

The Cato Institute seeks to broaden the parameters of public policy debate to allow consideration of the traditional American principles of limited government, individual liberty, free markets and peace.

The National Priorities Project (NPP) is a nonprofit research organization that analyzes and clarifies federal data so that people can understand and influence how their tax dollars are spent. NPP focuses on the impact of federal spending and other policies at the national, state, congressional district and local levels.

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