What is one of the easiest ways a good person can still manage to get themselves in financial trouble?
The payment plan.
The simple payment plan of buy now, pay over a series of payments, usually years long. “I can afford this because it’s only 25 dollars a month” becomes the rationale for people who make these kinds of purchases.
You think that politicians didn’t know that? In the financial history of the United States, one thing can seriously be looked at as a turning point from not spending all that much to having a full blown spending frenzy after World War II. This country has indeed swelled the spending lately, but looking at the programs that are primarily driving the debt at this point, you can see that it isn’t programs that are coming in now (other than Medicare part D for dumb).
It’s things like Social Security, Medicare, Welfare and so on. Programs designed and implemented years ago that were ticking time bombs much like the home ownership push from HUD was one set in the 90′s.
Not just left alone to do their work though, they were added on to, tweaked and fortified. Social Security now also has all sorts of other implications along with Medicare.
But the problem isn’t so much in those programs, but in the way that the politicians hide the true costs from you.
The payment plan.
If you truly want to wake America up to the burden that even the poorest are paying every year to support this binge spending habit? Make America write checks on April 15th to pay for their payroll and income taxes.
Make the country as a whole, even the people who have to write a 500.00 check for payroll taxes off a small pittance of a salary realize what a chunk of 10,000.00 the government is taking. And if you think 500.00 is not that bad, make less than 1,000.00 a month and see again.
When the middle class starts seeing that they are writing 5 to 10,000.00 checks at the end of the year, there wouldn’t be a politician that would survive it. Especially if the loopholes that should be taken out are taken out – the amount of taxation would anger the people like you’ve never seen anger.
That is why it was, through history, fought so hard until World War II came along and the crafty FDR got his chance to move on something no prior president had been able to push through had they wanted to in the first place. Even the Federal Reserve creating, income tax amending Woodrow Wilson didn’t get this beauty of a confiscatory smoke screen through.
Want to solve the problem of the masses not seeing the tax burden? Make sure that they have to write checks to D.C. for those payroll taxes NO ONE gets refunds back on. Then just about everyone out there will be clamoring for that politician they used to love to cut that spending on all sorts of items the taxpayer couldn’t have given a hoolietodo about before.
Want to see that debt cut?
Bring the pain home to roost instead of letting the illusion of a refund prop up the current system.
Want to have fun?
Ask a politician about this and watch them splutter. (If you get an answer – let us know please!)