What’s good for the goose

Here in California, we recently voted for a bunch of tax hikes. We did this thinking that it was obvious that the state needed money if we were going to maintain our schools and highways.

We may have been acting from enlightened self-interest but we managed to convince ourselves that this was the right thing to do. But then tax time rolled around. Suddenly we realized (duh) that this was going to cost us some money. We knew this going in, but that’s not the same as having to deal with actually forking over the dough.

The result is that, once again, business has seemed to evaporate right before our eyes. People who have to pay more taxes don’t have as much money to spend on things like new dining tables or upgraded bathroom vanities. And what seemed to be a small extra burden has left people feeling much more pinched that they might have thought.

Pinched is a relative term. People who earn a working wage might have a whole different interpretation of pinched than those earning a few hundred thousand a year or more. Nevertheless, when one is feeling the pinch, discretionary spending decreases.

Something to think about if your state is considering imposing increased tax burdens on “the wealthy.”

D.D.

COMMENTS

  1. Jerry Finch wrote:

    I had to laugh when I read your blog. You voted to raise your own taxes, in a state where the legislature has overspent your money for decades, regardless of the future or the cost to taxpayers, and now you are complaining? I assume that you also voted for Pelosi and Obama and Gov. Moonbeam as well. You do get what you wish for sometimes.

  2. D.L. Stoops wrote:

    I’ve been feeling “pinched” for several years now! Business is slow… no pay raises. Payroll tax “break” expires… a reduction in take home pay. Cost of health insurance… up, yet again. Cost of food, fuel, and everything I do… up. Business slows again… a reduction in my hourly wage. This economy… this administration… is absolutely killing business! I learned long ago… the federal government could tax every wage-earner at 100% and it would still not be enough… ever!!!! I sincerely hope that, at some point in time, those running the assylum realize that we all have to “live within our means”… and that means reducing spending and and paying off debt. For me, discretionary spending doesn’t exist… it’s just the essentials!!

  3. John Gresko wrote:

    I so agree with Jerry. What in the ‘ water’ in California to cause the population to vote to raise taxes in the most debt ridden state in the country and who pay their gov employees ridiculous salaries and pensions . They are nearing state bankruptcy and don’t even know it.

  4. Tim wrote:

    I guess it’s just a question of priorities. Some people would rather buy a new dining table than pay for education. It all goes back into the economy anyway, whether it’s spent on teachers or spent on woodworkers.

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