The Big Lie – Virginia’s Jamestown Tax

Here in the Commonwealth of Virginia, 2007 was a big year for us.  If you have not heard, the 400 year anniversary of Jamestown took place this past summer.  So you can just imagine 2007 has been one big year-long party.  Like any party, it cost a bit of money to throw and being 400 years old, a cake and keg surely is not enough for this celebration.

With the help of former Gov. Mark Warner and the General Assembly, a one-time tax of $1 ($6 million a year) to vehicle registration was passed to pay for this grand celebration that included President Bush, Gov. Tim Kaine, and her majesty Queen Elizabeth II.  The main provision about this tax is that it is to expire on July 2008.  What does this mean?  The best way to look at it is like when you purchase a car.  You agree to a loan for a certain amount of time, this time chosen is based on how big the loan is and how long it would take to pay it back to the bank.  Once you’ve paid back the loan in time agreed to, you receive the title for the car.  Same situation here with the tax, the bank is the fine citizens of Virginia, the owner is the State, the car is Jamestown and the terms is from 2004-2008.

Just like during the Warner administration, the Commonwealth is in a “budget crisis.”  Gov. Kaine has declared the state will have a $600 million budget shortfall (this shortfall does not include the new $53 million dollars he has proposed for child-welfare services) which needs swift resolve in order to fix.  Guess what Gov. Kaine has proposed.  You guessed it, taxes.  No, he’s not issue new taxes like Gov. Warner.  Instead he’s going to extend the vehicle registration tax, a one-time tax that the citizens of Virginia have already paid.  According to Gov Kaine this tax is a way to fund new tourism initiatives and the DVM. 

Personally I have no problem in funding these areas, especially tourism.  The way I look at is, the more people that come to Virginia, the more they spend, the more money they bring to the coffers and I would think the less I would be taxed in the end.  At least that is how it is supposed to work.  However, the General Assembly and the Governor’s office made a promise to the great people of Virginia when the Jamestown tax was passed.  It would be a one-time event. 

Now this promise looks like it will broken along with the trust we have in our elected officials.  When will this cycle of lies end with our elected officials?  It is bad enough we have people in Washington lie to us, but it is even worse when it is our own neighbors who are representing us in local and state government.  It is time to end this cycle of lies and mistrust.  It is time to hold our representatives accountable for their actions by letting our voices be heard through ballot box.  This is a good example of what Reverend Jonathan Mayhew saw in Boston in 1750 and preached in sermon – “No Taxation without Representation!”

The Gotham Times (not the HaHaHaTimes)

Extra, extra, read all about it, City is at War!!!  Batman saves entire family!  A city in crisis!  Can Batman keep our beloved Gotham safe?  Read all about in latest edition of The Gotham Times.  

 

Death & Taxes

If you have not realize it yet, in 2008 the United States will be holding both Presidential and Congressional elections.  This coming year is not just another election year, but an important one that will help chart the course of this country over the next 4-6 years.  Like all elections the key campaign themes are terrorism, Social Security, education, health care, foreign policy, and of course everyone’s favorite — taxes.

Like the old slogan states – “nothing is guarantee in life except death and taxes” and that could not be truer.  There are two fundamental philosophies in this country when it comes to taxes.  The Democrats want to raise taxes, especially on the “wealth” to pay for social services and the Republicans would like to lower taxes to spur economic growth.  Both philosophies have their fundamental pros and cons.  However, I always find it rather interesting how Democrats determine who is the “wealthy” that will be tapped to pay for these higher taxes.  So where am going with this?

Well, the International Herald Tribune had an interesting article on December 6, 2007 about the labor shortage in Denmark.  Like many countries in Western Europe, the governmental philosophy has always been to levee higher income taxes to support enormous social programs.  In Denmark’s case, income tax rate can reach up to 63% of a person’s salary.  WOW!!!!  If you make around $100,000 a year, you could be paying roughly $63,000 in taxes.  Can you believe that?! 

Due to this absurd rate, Demark is seeing an exodus of skilled, talented workers like engineers, programmers, etc. to other parts of Europe and the world where taxes are lower.  What does this mean?  Demark companies are finding it harder and hard to find skilled workers to fill employment opportunities,  causing companies either to close up shop, move to other countries where workers are available, or import workers from other countries at possible lower wage.  All of these options create an undesirable situation both economically and socially for any country. 

If this could happen in Demark, could it happen in the United States?  Yes, the ingredients are there for this to occur.  Some would even say this is already occurring with the amount of off-shore outsourcing US companies have solicited over the last few years.  The fundamental lesson I hope our politicians will understand is that taxes can not solve all our problems epically when it comes to social issues.  Taxes should be progressive and should not penalize individuals for being successful.  Isn’t one of the signs of being a successful Capitalistic country being wealthy?  So, if we are taxed for being successful, where is the incentive to be productive (US has the highest productive rate in the world), to create innovation, or to get an education?   If this philosophy does not change, this country could be following the dangerous path that Western Europe is already in.