Unfortunate Truths

Perhaps the biggest missing piece in the government funding debate is the fact that revenues generated by taxation exceed the amount necessary to cover the interest on the national debt. This important fact has been ignored or glossed over by both left and right. Why?

Political gain and expediency.

For the Democrats, this is an unfortunate truth that belies the notion that the United States must reach a funding accord or the nation will default on its loans. The truth is we need simply to pay the interest on said debt to prevent defaulting.

For the Republicans, this is an unfortunate truth that removes the hammer they wield in the argument over funding the Affordable Care Act.

Another unfortunate truth is that both sides would rather risk the future solvency of the nation than risk losing their jobs. Both parties run to the cookie jar when constituents clamor for more of anything, fearful of the backlash of unhappy voters. Meanwhile the debt grows.

The Republican answer to the debt is to reduce spending. But what spending should be cut? Every dollar spent by the Federal Government is precious to someone who benefits by it. The idea that raising taxes diminishes job growth has helped to underpinned their argument, but not as much as they hoped.

The Democrat answer is to increase taxes. But which taxes? Rich, poor, and everyone in between wants to keep as much of their income as possible. With so much uncertainty in the world, there is a great desire to keep what's been earned for that impending "rainy day." The class warfare angle has helped, but not as much as they hoped.

The answer will come from "We the People." And I'm afraid we won't like the result.

Another unfortunate truth. Without a change in the hearts of citizens, chaos will inevitably ensue. We see it already. The rule of law is becoming an anachronism. From the smallest things, like ignoring red lights and stop signs because they are inconvenient or the rationale that no one will get hurt if I simply don't stop, to students willing to cheat en masse through cell phones rather than study, to elected officials openly admitting they will not obey the laws of their state and nation.

Jeremiah 17:9 says

"The heart is deceitful above all things, and desperately sick; who can understand it"

The influence of Judeo-Christian values once mitigated much of the damage done in society, but that influence is eroding quickly. The backlash against such influence is fueled in large part out of a desire to fulfill the needs of self over the needs of the many. Truth that inhibits an individual's personal choices is not only inconvenient, it is seen as unfair. Tolerance is the byword, but like the rule of law it is disbursed judiciously, and only when it doesn't conflict with self gratification.

Law breeds contempt. Contempt breeds chaos. Chaos breeds anarchy. Anarchy breeds Destruction.

Jeremiah 17:10 says

I the Lord search the heart and test the mind, to give every man according to his ways, according to the fruit of his deeds."

State of Stealth

A battle is being waged in the state of Maryland over the state's desire to expand casino gambling. Huge in the rhetorical arguments of both sides is the claim that more casinos equals more money for education.
History, and the state constitution, teach us one thing. The amount of money collected through the collection of taxes on gambling will equate to a commensurate rise in the total state budget, but the necessary funds for education would have been found regardless.
Look at it this way.
Suppose the state budget included $100 million dollars for education. The state tells us that we don't have sufficient funds to give our children a quality education. Okay, you say. The state promises to allocate the taxes collected from the casinos to education, so give me more gambling statewide.
The first year's tax collection nets $50 million in casino taxes, and you see the education budget rise by $50 million. Ah, you say to yourself, the state was telling the truth. The money did go to education.
But this is a half truth.
You see, the state is obligated to provide a quality education for our children. If that meant to raise the education budget by $50 million that would have occurred whether or not the casinos were taxed. Without the casino tax, either discretionary spending would have suffered, or other taxes would have been raised to cover those discretionary items.
Let's say you live on a fixed income and the cost of food goes up. What do you do? If you have no way to increase your income, you need to pull money from somewhere else in your budget to cover that increase. Maybe you give up going out to the movies. Maybe you cancel your cable subscription. But you still eat. Cable is discretionary, eating is not,(although you can do a better job with the cash you have for food by making better choices at the grocer.)
A less that ethical individual would go to the local food bank and ask for food but not reduce their discretionary spending, thus having their cake and eating while watching the movies too.
This is precisely what the state is doing.
I'm sure spending on education will rise.
But at what cost to the citizens? The casino money came from the citizens in the first place.
Can you say "Stealth Tax?"