Interesting Times
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| by Mary Wakefield Buxton |
They consist of living in an enormously debt-ridden nation with citizens soon to pay much higher federal taxes. With a national $12 trillion debt and rising with every Congressional outlay, it is time to shoulder together to balance books.
We were told “the rich” would pay for Congress’ exorbitant spending sprees. It turns out to save the country from bankruptcy, similar to what has befallen Greece, which now has more citizens receiving money from government than paying taxes to government, we all will have to ante up and fast.
One new tax being considered by the Obama Administration is the VAT (value added tax), which may be the most diabolical tax system ever perpetrated on mankind. But VAT is a huge money maker for the federal government. You will never be aware of VAT because federal taxes are added at every stage of development of a product, but hidden in the price so entirely invisible to consumers. VAT will cause prices to rise a third or more on everything.
For example, take a dress for sale at Bristow’s Store. If VAT is approved, the farmer who grows cotton for the dress is hit with a federal VAT when he sells his crop to a thread company. When the thread company sells thread to a fabric company, another VAT is included. When the fabric company sells bolts of fabric to the dress maker, another VAT. And again another VAT when the dress maker sells to Bristow’s Store. By the time I buy the dress it will be positively squeaking in tax. But that ol’ cotton ball isn’t quite finished paying taxes. Now it’s the state’s turn to charge its tax, which is visible on the receipt, as usual.
The problem with VAT is that it will raise a lot of revenues for the federal government but will make the dress much more expensive. End result: Consumers buy less clothing.
In last week’s column I had fun writing about humorous ways to cut back on local property and license taxes. Along the same vein, how would I save on VAT?
I could plant and pick my own cotton, spin it into thread on my handy spinning machine, weave the thread into fabric, design and sew my own dress, and finally give the finished product to me. Hurrah! No VAT.
But suppose I don’t want to grow cotton in my backyard or, worse, even know how to sew a dress, but I want to evade VAT? I could simply wear a sheet. They can be draped quite fashionably off one shoulder, like the Romans used to wear togas.
In the meantime, VAT will have added so many hidden taxes to oil as it is drilled, refined and processed into gasoline, that I wonder if Mary, dressed in her stylish sheet, would be able to afford to drive? Never fear, she could sell her car and walk, but it may be difficult to walk in a sheet. Or, she could get a horse, but it might be even more difficult to ride in a sheet. She may also want to keep chickens, pigs, goats and a cow in the shed along with several rows of corn, green beans, tomatoes and kale if VAT is ever added to food.
Another tax being considered by Congress is Cap and Trade, which will add new federal taxes to all sources of energy to discourage people from over-using energy in order to save the earth. The result will be we all cut back on energy simply because we won’t be able to afford it. Remember that light you once so nonchalantly left on in the basement in hopes of scaring away burglars? Turn it off.
In order to save on Cap and Trade taxes, one will have to dress according to the weather. Cave man style will return. Think furry pelts flung over the body for winter to cut back on heating costs, and bikinis and thongs in summer to save on air-conditioning. Get a dog. Dogs are warm snugglers for cold nights and two dogs are even better because they heat both sides of you for free.
Sterno stoves can replace expensive ovens, a clothesline can replace dryers and, well, you get the picture. Remember how Grandmother lived? Well, move over Granny, here comes Cap and Trade.
We can and should laugh a little about the coming new federal taxes, but it is important not to panic. Just scale back lifestyle by half on everything. That way you can easily afford the new federal taxes, pay off the staggering U.S. debt and save the earth.
Definitely interesting times.
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