Just after this year's midterm election, I went on vacation overseas. My first stop was London where a local paper greeted me with two concerning headlines.
One referred to the "shellacking" President Obama and the Democrats took in the midterm elections and how this might not bode well for the president's reelection. Scanning the page, there was a second headline of more immediate concern to me. The Tube workers were on strike.
For those of you not familiar with the Tube, also known as the Underground, that is London's subway system.
The article noted that while most Londoners could cope with the situation, tourists were seriously inconvenienced. That hit home.
As it turned out, it was a one-day work stoppage over job cuts, and the Unions scheduled another stoppage for the end of this month. I was just worried about any wildcat strikes. That didn't happen.
One thing I learned quickly is that the economic downturn has global dimensions. There is a global scramble to figure out how to salvage businesses and services and create more efficiency. Unfortunately, in terms of layoffs, pay cuts, and workload, that adjustment is being borne on the backs of the working class.
During my days overseas, I saw reports of workers in France staging protests, and journalist at the BBC walking out for 48 hours over a pension plan dispute— something we don't have to worry about here since most of us don't have one.
The only debate stirring passion here is taxes. A vocal group has risen to protest the intrusion of government and taxes primarily stemming from passage of health care reform. Independent agents are hot and heavy in protest of one element of the health care reform measure that would make them issue 1099 forms to vendors they purchase $600 or more in goods from. This is an effort to collect taxes on commerce that may go unreported.
I don't know enough about this to make a value judgment over the merits of the debate, but I would make at least one general observation. At some point we have to pay for the things we expect from government. I believe a number of Americans are under the illusion that government can carry out its duties and no one has to pay for it.
One faction argues that what we need to do is cut spending and lower taxes, and then all will be right with the world.
Based in my reading of history, that is foolish. The 1930's Depression proved that you grow by investing, not cutting, and that means government investment, which means us investing in ourselves.
The U.S. GDP is expected to limp along at somewhere between 1 and 2 percent. While in Germany I caught a news report saying Germany's GDP is expected to be above 3 percent and scale back just below 3 percent next year.
While in Frankfort, Germany, I stopped in at a café for some coffee. Do you know what the tax is there for a drink in a café? Nineteen percent.
Right now, there is a debate over whether those making over $200,000 for singles and $250,000 for couples should see their Bush tax cuts expire. While I can understand a small business retaining some tax cut, believing that their income can translate into a reinvestment into the business and its people, I don't understand why multi-millionaires shouldn't pay more to benefit future generations.
Franklin Roosevelt supposedly said, when asked about the graduated tax system, that those who enjoy an unfair advantage of wealth should bear an unfair burden in taxes.
My question is, when did multi-millionaires become an endangered species?
Mark E. Ruquet
Associate Editor
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