Incessant Taxing and Spending

A three-year old news article proves that nothing has changed in bureaucracy/government.

Published July 2012 in the Business Examiner Thompson Okanagan, the article is entitled "We Can't Afford the Cost of Government", penned by publisher/editor Mark MacDonald.  Reproduced here is the article in its entirety.

"As the private sector trims its expenses to meet revenues and reduces forecasts for the new economic realities, the ever growing largesse of governments of all sizes is conspicuous by its lack of participation in the exercise.

The federal government called for 10 per cent reductions in spending during the (then)-current fiscal year, which is a start.  Not enough, but it is a start.  The city of Penticton recently undertook a Core Review and successfully implemented its results, holding tax increases to net zero and reducing redundant staff.  They are to be commended, and should be an example to other municipalities.

"...when are we going to put the brakes on this

incessant taxing and spending?"

However, property taxes continue to rise in most cities and regional districts like clock work.  While the province has lowered personal income taxes during the BC Liberals' reign, there has been a continual rise in fees and licensing costs -- subtly raising the true cost of living.  We may notice less income tax coming off our pay cheques, but at the end of the day, the offsetting fees indicate we're paying more for government, again.

'The problem with socialism is that eventually you run out of other people's money.'  M.Thatcher

Annual property tax hikes typically hover around two per cent per year, which may be smart budgeting in a normal business climate, but it still represents growth in an environment where many citizens and businesses are failing to realize those increases themselves.  And yet they march on.  And on.  And on.  Year after year.

Appointing a municipal auditor/ombudsman to take a closer look at what's happening at the civic level is a start, but really, when are we going to put the brakes on this incessant taxing and spending?

Would we dare elect someone who actually told us the truth:

that we can't afford to continue to spend as we do?

As former U.K. Prime Minister Margaret Thatcher said: when are we going to put the brakes on this incessant taxing and spending?  'The problem with socialism is that eventually you run out of other people's money.'   In a very real way, we're getting what we deserve.  We continue to elect politicians who promise us everything -- but we fail to realize they're promising to spend our money.  So they buy our votes by promising to buy us things we can't afford, and we continue to pile up deficit after deficit as a dubious legacy for our children and grandchildren.  And we keep electing them.

Would we dare elect someone who actually told us the truth:  that we can't afford to continue to spend as we do?

Maybe Wisconsin has, as they have re-elected Governor Scott Walker, who was subjected to another election after state unions rallied citizens to recall Walker when he introduced austerity measures.  Walker was re-elected by a larger margin than his original victory.  Indiana Governor Mitch Daniels is also singing from the same song sheet, going even further by suggesting it should be against the law to have unionized government workers.

Economist Michael Campbell said years ago that 'sooner or later, it all comes down to numbers', when speaking about national economies.  What we're seeing in Greece, for example, is a dire warning to other western nations who continue to pile up exorbitant deficits and pay out pensions far in excess of what citizens can afford.

An economy based on government services is really a false one.  Government workers don't create revenue -- they are an expense.  Yes, services are important -- that's what we expect our tax dollars to cover.  But these are not economic generators.  Services exist because there are businesses that create products and extract minerals and supply materials that can be sold and exported, bringing outside revenue into the community. 

How can we stop the madness of government growth?  Legislating net zero budgeting at all levels would be a start.  Make it against the law to run deficits.  If School Boards don't turn in a balanced budget, they can be fired, instantly.

It's time we take drastic action, before we turn into Greece."

Mark MacDonald, publisher/editor                  

"If two years ago was time to take drastic action," suggests Kia "what has changed in the interim?"

Not much kiddo!