Regulation vs. Prosperity… America goes gently into that good night

http://www.imperfectamerica.com

We also see people who have taken cash under the table for many years suddenly wake up–much too late–at about age 55 and realize that their SS pension is not going to be a good one.

Owen Glendower on March 19, 2013 at 8:44 PM

Thing is, given the direction the government is headed, those people who paid into Social Security the right way are also going to suddenly wake up and find out their SS pension is not going to be a good one.

Looks like AARP is already sounding the klaxon over chained CPI or any other means of reigning in SS outlays. That program will soon become unsustainable and completely collapse if every attempt to lower the payout of money that has long since been spent is thwarted.

It costs too much now for companies to create open positions that carry the costs of mandated health insurance. Instead, more employers appear to be paying cash for what used to be called piece work in a bygone era.

Employers are also trying to treat more people as independent contractors, in order to escape paying the employer’s share of SS tax, as is required for employees. Employers would rather issue a 1099 rather than a W-2, in other words.

My wife & I see a great deal of this in our small tax & accounting practice. Employers can often get away with treating the employee as an independent contractor because the employee would put his job at risk if he disputed it.

We also see people who have taken cash under the table for many years suddenly wake up–much too late–at about age 55 and realize that their SS pension is not going to be a good one.

People now only comply out of fear. Not because there is some legitimacy to the claim the government makes on their resources. Do you really think a child born now feels in any way whatsoever liable for the trillions in debt they had no hand in making and derived no benefit from?

The left can have its kleptocracy but they are going to find they can’t keep it. We are at the stage where the elite think they can game the system and insulate themselves from the ravages they inflict on the rest of us. That state of affairs cannot, and will not last. Eventually even the OWS crowd will get a clue and their anger will be all the more intense for having been fooled and used as they were.

it cannot extract rational revenues from its participants

Sure it can. Several rational taxes such as a sales tax fit the bill.

Or, maybe I do.

Underground economies exist to fill a void in a free market society. So make your stupid little rules and tax everything to death and watch what we do. Simple, easy (too easy for a lib).

Are we experiencing an off-the-books boom?

No. next question?

And then there is the economy that runs on abuse of the EBT card.

If Government were even to the level of “average” or above, then you MIGHT possibly make the argument of “stealing”. Conversely, if the decisions are “Where’s Moochie”, or F16s for the Muslim Brotherhood, or Solyndra, then the problem never even approaches the radar.

There is really no excuse for the way that Government is behaving, so it deserves a spanking. That’s what we just tried (to the tune of a 2.8% decrease in the rate of increase) and the kid threw a fit! Stomping it’s feet on top of White House tours, kicking over Tuition Assistance for Military, and biting essential personnel with furloughs.
Nope! Meltdown happened right in the middle of the living room, where all the breakables are. Totally spared the toys in their room; the EPA, and SEIU forces.

IMHO, we need to take away ALL the allowance and force them to sit in their rooms. The “Grey Market” is the LEAST of our worries.

GWB on March 19, 2013 at 3:12 PM

Agreed! And I thought I was overly optimistic!

Right now, the average worker simply sees his net pay, after taxes have already been deducted.

LooseCannon on March 19, 2013 at 3:01 PM

Which is why I advocate – since we can’t get rid of the national income tax and return it to the states (where it belongs) very easily – the elimination of withholding, and the payment of federal taxes on the Friday before the Tuesday of election day. We might see some shifts in attitudes, then.

When your teenager starts wearing expensive clothes and flashing bling he couldn’t possibly afford through his part-time job, you start to wonder where the money is coming from.

Drug money

Dusty on March 19, 2013 at 2:00 PM

I agree that the objective should not be more revenue, but less government. That said, I stand by my argument that the high visibility of a consumption tax would exert pressure to keep the rates as low as possible. Coupling this with spending limitations, (balanced budget, base next year’s spending on last year’s revenue, etc.), would go a long way toward forcing budget responsibility.

Right now, the average worker simply sees his net pay, after taxes have already been deducted. With a consumption tax, that worker would see a greater amount in his paycheck, and have to watch it go out a piece at a time with every purchase made. I can think of no better way to make the average Joe more acutely aware of, and promote his objection to, the profligacy of government.

Its not an off-the books boom its folks raiding their retirement accts and burning up the credit cards

NY Conservative on March 19, 2013 at 2:48 PM

I’m paying off my credit cards. I did raid my retirement account. At least my official one, to minimally help pay for my move to a new job.

Maybe I should join the underground.