The poor ol' taxpayer

By definition Governments govern and therefore don't create money so when they need funds they hit the taxpayer - a government spending promise is an obligation that the taxpayer will meet.

From New Jersey Ashbury Park Press comes this letter;

February 2, 2009

Big government, high taxes a disaster

Recent state Department of Labor data shows the rate of public-sector employment significantly increased from 1998 to 2008: State government employment rose 13.3 percent, local government jobs (not including schools) increased 17.1 percent, and local education employment (school systems) jumped 23 percent.

During that same period, private-sector jobs grew by only 5.7 percent and New Jersey's population grew 3.3 percent. Quarterly employment data for 2008 shows substantial private-sector employment declines.

Most economists attribute the Great Depression to a massive government credit expansion of the 1920s to pay back the debts of World War I, followed in 1928 by government money supply contraction that led to the 1929 correction and subsequent bad fiscal policy.

Despite a petition from 1,000 economists urging President Herbert Hoover to veto tax increases, the import tax was doubled in 1930 and the Revenue Act doubled income taxes in 1932. That put more pressure on the free markets and contributed to the 1932 crash and prolonged depression. History shows that bad fiscal policy compounded by tax hikes is disastrous.

The market correction of 2000 and subsequent local and state tax increases are choking the private sector and families. Now, in 2009, company after company is announcing huge salary cuts and layoffs, as municipalities and school boards figure out how much more they can raise their budgets and taxes.

Shouldn't those who finance the operation have a say in the level of spending, as opposed to only government administrators and officials conflicted by deals affecting their own salaries and benefits?

An executive order mandating local tax reductions would be appropriate fiscal policy. If government does not share in the burden today, we all will suffer tomorrow.

Brad Tombs

POINT PLEASANT BEACH