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Taxation Without Representation

There is a small but growing revolution in America right now.  Taxpayers are becoming fed up with the Government’s constant cycle of waste, deficit spending and raising taxes.  Many citizens are struggling to make ends meet and they cannot afford higher taxes.  Others are concerned for their children and grandchildren, who could be paying off these debts for generations.

Taxed Enough Already  (TEA)

Boston Tea PartyThe Taxed Enough Already (TEA) Party, which takes its inspiration from the Boston Tea Party, is growing in strength and numbers.  They are holding rallies across the nation and members are writing their elected representatives.  Vocal crowds turned out in many cities on tax day and there are hundreds of rallies scheduled for the 4th of July.

It will be interesting to see how much of an impact the TEA Party will make.  There is no doubt many voters are fed up with the runaway spending and the climate is ripe for a change.  The real question is can the TEA Party generate enough momentum to affect the decisions made by our Government.  I certainly hope so.

Our Future as a Country

Many believe our very future as a country is at stake, at least in the lifestyle we have grown accustomed to.  Unless we want to have an economy like Japan’s, we need to stop spending our country into ruin.  Our current level of debt is so high that investors are dumping our bonds and currency.  Investors already know what most Americans haven’t yet figured out.  There is no possible way for our Government to repay the 11 Trillion dollars of debt without sustained inflation or a massive devaluation of the dollar.

If that happens, Government bonds and U.S. dollars will be worth a lot less.  And, so will everyone’s IRA and 401K accounts.  Think about that for a second.  Say you work hard your whole life to save up a couple million dollars and then it gets devalued or ravaged by inflation right before you retire.  I don’t want to engage in scare-mongering.  But, this is a very realistic scenario.  It has happened in Germany, Mexico, Argentina and many African and Asian countries.  Our economy cannot support 1.5 Trillion dollar annual deficits.

Graft and Corruption

The most frustrating part of this whole deficit problem is that it stinks of graft and corruption.  Between the Wall Street bailouts, the targeted earmarks and the no-bid contracts, it is obvious that our tax dollars are being funneled to companies who are connected to our politicians.  These entities are stealing our precious tax dollars, which should be used for providing Government services.

Lack of Representation

The Wall Street bailouts showed very clearly that the Government no longer represents voters, but special interests.  Voters were strongly against the bailouts, but were largely ignored by the Government.  Only a handful of politicians stood up for taxpayers and they only held up the giveaway for a short time.

The next election will determine a lot about our representation within the Government.  If we vote out a significant number of incumbents, then we may regain some influence as voters.  If the majority of incumbents are re-elected, then we may continue to lose our rights and our representation.

The Bottom Line

The bottom line is that taxes are necessary to operate our country.  And, I don’t mind paying my fair share.  However, I am furious that our hard-earned tax dollars are being squandered recklessly and swindled away from our treasury.

I’m both a patriot and an optimist.  But, I don’t foresee a very pleasant future if we can’t stop this runaway spending.  Unless we can regain some control over our Government, we are all going to be sitting together in a sinking ship.

“The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

Ronald Reagan – 40th President of the United States

Recommended Reading

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4 comments to Taxation Without Representation

  • You are right, Bret. The government will not devalue the dollar for political reasons. The only other way out this mess we now find ourselves in is therefore via massive inflation.

    Inflation is a debtor’s best friend.

    The Fed obviously knows this too. In the coming months and years they will continue to talk about keeping inflation in check, but in reality, they will not be taking any serious action to contain it.

    Unfortunately, just as inflation is the friend of those in debt, it severely penalizes those who save and are responsible vis a vis their personal finances.

    It kind of makes you want to scream, doesn’t it?

    Len

  • […] Taxation Without Representation – “Could the Government’s runaway spending derail your investment future plans?” – Bret Frohlich […]

  • […] have written before about the rise of the TEA Party and the possibility of many politicians being voted out of office.  And, it appears that my […]