Saturday, July 23, 2011

Is Self Taxation Better Than Government Taxation?

Government budget deficits and spending overruns are finally receiving some major attention from politicians and governmental bodies over crys from the general public.  We ALL know this is long overdue!  With the Democratic and Republican parties heavily entrenched in a political battle over increasing the debt ceiling above $14.3 trillion by August 2nd it seems like a good time to discuss a shift in "taxation" that likely will grow exponentially in the coming years:  self-imposed fees, charges, contributions, donations, etc. to provide services and support to things that are dear to us.  Our politicians are wise to this fact too!  They recognize if they cut in areas that the public can directly feel and experience (schools, parks, public safety, etc.), then the public is likely to find other means to keep those areas going with zero or decreased governmental funding. 

It's almost trickery to so degree by making campaign promises of "no new taxes" and then cutting the very services that have more of a tramatic impact on our daily lives - we become "tax assessors" upon ourselves to provide these very services historically provided by our traditional tax dollars.  For example, here in El Dorado County, parents, the community and the Buckeye School District have rallied around the newly organized Buckeye Education Foundation to provide incremental funding to support classes and services recently dropped or severely cutback at the respective schools.  In California and Nevada, Raley's is helping to save California parks from closing come September by committing funds raised through a program to donate at its 133 grocery stores.  The state is planning to close as many as 70 historic parks as part of the state's massive budget cuts.

These and many other "vehicles" for keeping things important to us will be created to keep what we cherish operational.  This is capitalism at it's finest though!  We pay for what we want to use and support and those things that are not important to us do not receive our time, energy and all important dollars.  It further places the obligation of cost directly upon those that are to receive or obtain the most benefit.  I have to believe that Americans will find solutions whether it is through private enterprise, establishing non-profits, volunteering without compensation, donating or the like to protect our quality of life.  It's not necessary to have government involved in everything!  We will find ways to make it work.

However, it is unfortunate that there will be higher governmet costs too (through increased taxes - likely to go up and not down) regardless of what we do to solve these current cutbacks.  Entitlements, personnel costs, interest payments on debt service and our national defense will be huge drains on our tax revenues for as far as I can see.  The real issues that befall our government have narily been addressed.