Ruminations - 10dec2010

George Rebane

Yes, the ‘rich’ can pay more taxes.  But when you make them do that, they will make fewer wealth generating decisions and take the attendant risks that make those increased government revenues possible.

- British students riot for more OPM
- The religious give more than the irreligious
- Nevada City protects its downtown businesses
- Where to put the new courthouse?
- Rep Boehner pulls a boner
- They tax you first, and during, and after you die

The ‘little darlins’ of Great Britain are tearing up London protesting Parliament’s decision to hike the costs of education.  These costs have gone up for all the reasons that we know.  However, the always remarkable response from the mis-educated brats is that their expenses should continue to be covered by other people’s money.  Their socialist curriculum somehow missed the part about how those monies are earned, and what motivated the earners to work hard for the cash to which they feel entitled.  They also have no clue that the more socialist economies don’t generate all that much to redistribute.

Years ago the WSJ reported on a study of charitable giving that measured how much more voluntary gifts generate than the charitable receipts from government mediated distributions.  More importantly, it was reported that the left-leaning secular humanists were pretty niggardly when it came to contributing their own bucks to worthy causes.  This has not gone down well with the people claiming the moral high ground.  Today DE Campbell and RD Putnam do an update on that (‘Charity’s Religious Edge’).

It turns out that people of religion give significantly more than those not so encumbered.  When controlling for all kinds of factors like giving to their own church/temple/mosque, the religious “actually give more money to secular causes than do secular Americans.”  The explanation is still the same old one – the seculars are mostly left-wingers who see the needy being provided for by a government that takes money from the greedy rich and redistributes it accordingly.  Given that, why should they worry?

Locally, our Union reports (here) that Nevada City is arranging for the purchase of the Sugarloaf promontory overlooking the town.  The city has been allowed to purchase the valuable 30 acre parcel for $450K and “preserve it as open space.”  Since the city is broke, it will have to pay for it with a confusing mixture of financing that will come from the Nevada County Land Trust, Prop40 “recreational grant funds”, and/or “county-administered developer fees earmarked for recreational projects.”

Since everyone in California is broke, this is another project that will have to be financed by the good people of Ohio through whatever means Sacramento can convince the feds to shuffle cash to the left-coast.  I was kinda hoping to see some commercial development up on that mountain that would provide an attractive tourist venue – e.g. restaurant with sweeping views of our foothills having business meeting rooms, shops, etc.  But that would be a no-no since it could cannibalize customers from downtown businesses.  I guess no one saw it as a development paying for itself in addition to providing added revenues to existing regional businesses.  (On the subject of NC development, check out the history of residential permits issued by the county during the last 22 years.)

Speaking of where to put the new courthouse in Nevada City – has anyone looked at buying the Stonehouse property and building the new courthouse complex there with a pedestrian bridge to the public parking lot across the intersection?  Both properties could handle multiple-story structures.  This would keep all the courthouse foot traffic near downtown to use the eateries, office spaces, and shops that are in danger of losing customers if the courthouse is moved further from city center.  Just a thought.

Stan Meckler, president of the NC Tea Pary Patriots, sent an email reminding everyone that Speaker-to-be Rep Boehner, (R) OH, has designated Rep Hal Rogers, (R) KY, to become the new chairman of the House Appropriations Committee.  Apparently Rogers holds the Republican free-standing record for pulled pork in that august body.  The man has delivered more earmarks to his district than …, well, you know.  As a dedicated TPP member, this seems to me like another prelude to 2006 – déjà vu all over again.  The lyrics of a famous song of the left come to mind, ‘… when will they ever learn, when will they ever learn?’

Finally, as an oldster it really rankles my hide to hear of the death tax being re-instituted.  In the currently tottering agreement announced by Obama, the estate tax has been compromised to 35% for everything above $5M (with the socialists howling for 55% for everything above $3M).  Besides being a guaranteed small business and jobs killer, this tax is not only stupid but just plain evil.  The estate so taxed is owned free and clear – its owner paid taxes to build it, paid taxes to maintain it, and after his death will have to pay taxes one more time just so that he can leave something to his heirs.  What has been built for his progeny during a lifetime will then have to be busted up just so the government can once again come in and extract its tribute.  Only the clever and connected can manage to sidestep that travesty.  Is this how good governance motivates honest labor and a financially strong country?

Comments

[Aaron Klein]

Violent demands for other people's money are usually referred to as "robbery" but in these cases it's known as "protesting." :)

[Dave C]

Interesting find by my daughter and son inlaw regarding California sales tax.

About a month ago they were going to purchase an iPhone 4 for my 16 year old grand daughter at their local AT&T Wireless store. The 16GB iPhone was $199, limited data plan at $15/mo and continue with the same family minutes plan. Total $214. Sales tax $53.16.

My son in law questioned why the sales tax was $53.16 on a $199 sales price. He was told the actual price of the iPhone is $599, with an in-store rebate of $400 for purchasing a data plan. California sales tax laws require the tax be based on the full retail (MSRP) price, thus collecting tax on the rebate amount. This scheme is practiced by only California and Maine.

I went on-line to both AT&T and Apple and went through the motions to purchase an iPhone without completing the transactions. Sure enough, $53 and change for sales tax.

Solution? On a business trip to Phoenix last week, my son in law dropped by an AT&T store with his daughter's phone, made the purchase, had the phone switched over and paid $215.09.

Same thing with purchasing a new automobile. Let's say the MSRP is $30,000. You cut a deal at $25,000 which includes a $2500 manufactureres rebate. You pay sales tax on $27,500.

[George Rebane]

Thanks for that illuminating heads-up Dave. California's politicians and regulators seem to have almost every base covered to discourage commerce. And I don't doubt that there are legions of faceless bureaucrats scouring the countryside looking for more ways in which to make a bad situation worse. This governance mentality is now mestastasized in our state.

[D. King]

"Locally, our Union reports (here) that Nevada City is arranging for the purchase of the Sugarloaf promontory overlooking the town. The city has been allowed to purchase the valuable 30 acre parcel for $450K and “preserve it as open space.”"

It's a loaf all right George, but it's not made of sugar.

"The ‘little darlins’ of Great Britain are tearing up London protesting Parliament’s decision to hike the costs of education."

George-
We MUST not forget the lessons of history,
lest we be doomed to repeat them.
Revolutions have been fought over tuition,
like…well…ah…can I get back to you on that?

As to the death tax, you really should be more
open minded George. This kind of thing has been
going on since the beginning of time. Our liberal
friends are just engaging in the time honored
practice of necrophilia.

[Aaron Klein]

"Violent demands for other people's money are usually referred to as 'robbery' but in these cases it's known as 'protesting.' :)"

Since apparently our local left-wing blogger doesn't have the journalistic chops to detect context, I feel compelled to ensure that any other mistaken bloggers know that my comment referred to the student protests in Great Britain regarding tuition.

I am unaware of any violent protests regarding the Sugarloaf property, although perhaps the aforementioned left-wing blogger had witnessed such an event. Still, even in that event, that would have at most rendered my comment ambiguous. At least according to most standards of journalism, English and common sense.

[Barry Pruett]

Aaron Klein - I was going to write something really funny, but I am laughing too hard. Love you bro.

[Bobo Bolinski]

Strokefest detector alert.