Raise Tax Revenues by Cutting Taxes?

I fell upon a great article about how lowering taxes can actually raise tax revenue. I was shocked it came from the Chicago Sun Times, because very few people I have talked to from that city have even considered criticizing what is going on in Washington right now.

Give this article a read. Hopefully the politicians in Washington will realize that maybe the ticket out of this mess is to make it more lucrative for us to make money?

Well, this is comforting!

10 Questions for the Rich Dad

When I first saw a Rich Dad, Poor Dad book a few years back, I thought they were just another set of investment books written to prey on the uneducated or "get rich quick" dreamers. However, after picking one up and reading it, I realized this was not so.

Robert Kiyosaki has since written many books. Most talk about how we have to get off our butts and work to get rich. Find cash flowing businesses, and your life will be great. Real Estate is a favorite investment of his, as are oil wells. OK, so what does all of this have to do with this blog?

Mr. Kiyosaki has a new book out called "The Conspiracy of the Rich," and if you hurry you can read it online for free at conspiracyoftherich.com. This book addresses many topics, but the one that is most relevant here is how the government's actions, whether through the educational system, tax policies or money printing, are keeping people poor.

I don't want to go into all the details. Read the book online for those, or view this short video.

Private Plane Hypocricy

I struggled with whether to post this video or not. In all honesty, it feels like one of those "60 Minutes" pieces that is trying to convince you that something is wrong versus simply stating the facts. Then I thought about how the Senators and the media jumped on the private plane story during the auto industry bailout, and thought it was fair game. Plus, it mentioned both a Republican (from Texas no less!) and a Democrat, so it reinforces my argument that the waste in our government is spread across both parties equally.

The arguments supporting the whole private plane thing typically revolve around two concepts. First, many times it may be the only way to be efficient with their time. And trust me, since I'm paying their salary, I want them to be efficient. The other line of reasoning is so they can get out and talk to everyone in their state, which I also understand. I'm guessing many of our government leaders tend to default towards the convenience of private air travel, even when unnecessary. You want to talk to the people? Hang out in the airport bar while you flight is delayed for the 3rd time. You will get to talk to many constituents.

View the video here.

You tax dollars at work

This is a few months old, but certainly indicates what can happen when egos and tax dollars meet. Watch this video about the (necessary?) John Murtha airport.

Something to thing about...

The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government - lest it come to dominate our lives and interests.

- Patrick Henry, American patriot and orator (1736-1799)

It is the system, not the party.

I have written in several posts that the problem we have with our government is not a Republican or Democratic thing, but a systematic thing. Our government has no incentive to be efficient or cut costs. In fact, it can be said the government officials and employees are have negative incentives to do these things. If a department becomes more efficient and doesn't use their entire budget, their budget is slashed next year. However, if they meet or exceed their budget, they can ask for an increase next year.

Why is it like this? Because unlike private companies, the government doesn't sell anything. They don't have to convince people to buy their products to produce revenue, they take money from us through taxes. A private company has to produce something with value, then convince consumers to purchase. If a company not efficient, it will go out of business. If the government is not efficient, it will tax, borrow and print money to get to breakeven.

A great article discussing this in more detail can be found here.

Anybody remember the SNL parody of Ross Perot? Dana Carvey impersonated Ross Perot. In a satirical commercial, Perot (Carvey) stated that based on the performance of the country, Perot would receive a "bonus" of billions of dollars. At the time it was funny. In hindsight, maybe Carvey accidentally discovered something that would improve, not increase, our government.