Thursday, February 26, 2009

The Consequences of Socialism

Brent and I were talking about Obama's proposed taxes, and what will actually come to fruition. The result of which: I'll quit my job.

I did the math and I would rather spend 100% of my time at home than work 50% of the year for the government to support their reckless spending habits.

Then it dawned on me- that's the consequence of socialism, it no longer becomes beneficial for producers to produce. Smart producers figure out that they're supporting consumers- so they stop producing.

16 comments:

chloe said...

Have you read Atlas Shrugged?

Salt H2O said...

I heart John Galt.

I probably should have named this post "Kory's gonna shrug"

adam said...

Gosh, 50%? You must make some sweet $ lol. I just did taxes and we're nowhere near that.... then again, I'm still a student. ;)

Mikie said...

Either way, Adam... she said "proposed" taxes. Not necessarily current ;)

Silvs said...

It's all about the Laffer curve. I'm glad these posts are back, although the mom ones are still kind of fun too. I guess whatever keeps you engaged with the blog works.

Steve said...

Yeah, 50% is impossible here. Are you moving to Sweden or something?!?!

And that is wrong about businesses. 50% is still a lot more than zero. If anything, it will just encourage businesses to find tax advantages, which are not as quickly a boom to the economy, do help it in various niches (ie green investment or workers benefits).

Salt H2O said...

50% isn't impossible with Obama's proposed budget, it's actually very probable, especially adding in state tax & social security.

If we were to put on top of that every other blasted tax we pay- it's happening.

Courtney said...

Very poignant, Kory. I never thought of it from that angle, but you are so right! Kinda sad when you really think about it.

Steve said...

Well, you could always move to a state that has no income tax. Your state and local taxes have nothing to do with Obama's proposed tax plans. You can't mix apples and oranges. If you are going to complain about the graduated income tax, then feel free. But you can't add in your state tax, locality tax, gas tax, school tax, property tax, etc and blame him or any President. That would have been like me blaming Bush for the high car tax my previous county charged, haha.

BTW, in theory, if there were a higher national tax, then the local taxes would be lower or less b/c then the states and localities would be receiving more money from the federal government for roads, schools, etc. Now, due to federalism, states have autonomy and have to raise these funds themselves since the federal government doesn't have enough resources to do all of this. Of course, they could build a few less B-2 bombers or battleships and build a few hundred more schools and hire several thousand more teachers instead, but that is a whole other argument!

davers said...

Russia was really destroyed by their black market, which was created by socialism.

Same thing will happen here.

davers said...

"if there were a higher national tax, then the local taxes would be lower or less b/c then the states and localities would be receiving more money from the federal government for roads, schools, etc."

hehehe...

that's a good one. wondering if you typed that with a straight face.
;)

Sherpa said...

Darn, Steve beat me to it.

Kory, Utah has some high taxes. But I guess that's what you get for electing pretty much only republicans in the state government for 40 years.

adam said...

Gosh I love Washington. No state taxes at all. Horrible roads though..

Salt H2O said...

" Your state and local taxes have nothing to do with Obama's proposed tax plans. You can't mix apples and oranges"

National taxes take the biggest chunk. Every american should add up what they are paying in taxes and maybe there would be a bit more anger about earmarks and pet projects.

Believe me, I'm no champion of the republicans- by no means.

What logic is there behind not letting people that make over 250k write off their interest from realestate? The only people that can afford realestate right now are in that bracket and instead of encouraging them to invest to save the market- they're putting in a huge deterrant.

One would think that a presidency that wants to see the redistribution of wealth would love to see people doing so voluntarily- but Obama also wants to restrict how much charitable donations can be written off in taxes. Apparently charity is only valid if it's distributed by the government.

Raising capital gains tax is also a brilliant manuver when the realestate market is stagnant, aside from not being able to write off any interest from an investment, the government is going to tax you extra for any investment profits you do make.

I never thought I'd say this- but I miss Bill Clinton.

Steve said...

Davers, it wasn't the black market that killed the Soviets, it was their state capitalist model they used. If the black market was really that effective, then eBay and Craigslist would undermine our government too, haha. Essentially what happened there, like most things that people love to point the finger at the "Commies" for has no relevance to us and our economy; but you had a paranoid and supply planned subsidized priced economic model competing in an international market; ie the Soviet government had to import goods and services at a higher rate than they could sell them to their citizens. It was a downward spiral for decades until eventually the well ran dry and social issues, mainly freedom of information and liberties tossed out the old system.

On an aside, even though the Soviet system failed, there were some good aspects to it. For instance, even when I was just there, I was able to buy my Rx in a local pharmacy for 1/6th the price I pay here, from a US country in the same box! So who has the more messed up system in that situation?!?!

davers said...

You got me there Steve. I'm moving to Russia so I can get cheap drugs.