Inflation a Tax for Government Spending?

Does government spending cause inflation – or are underlying factors to blame?

One thing is sure, the Government's need for money results in increased or new taxes, and new taxes tend to cause inflation. And, government growth increases it's need for money.
Let's say, the Federal Government increases taxes on the Trucking industry. Would the increased cost in transportation cause a price rise of the goods transported?

"No taxation without representation" is a political slogan that originated in the American Revolution, and which expressed one of the primary grievances of the American colonists against Great Britain.

Taxation in the United States in 1776 was incredibly different than what it is today. There were no income taxes, no corporate taxes, and no payroll taxes. Instead, the American Colonies (and to a larger extent, the British Crown) were primarily funded by tariffs and excise taxes. This means taxes primarily existed on imports of goods and services to the colonies, as well as on the sale of particular products.

The American Revolution was precipitated, in part, by a series of laws passed between 1763 and 1775 that regulating trade and taxes.

The Stamp Act of 1765 was the first internal tax levied directly on American colonists by the British Parliament. The act, which imposed a tax on all paper documents in the colonies, came at a time when the British Empire was deep in debt from the Seven Years’ War (1756-63).

On August 5, 1861, President Lincoln imposes the first federal income tax by signing the Revenue Act. Strapped for cash with which to pursue the Civil War, Lincoln and Congress agreed to impose a 3 percent tax on annual incomes over $800. This went on until 1871.

The States ratified the 16th Amendment, instituting the federal income tax on February 3rd 1913.

The Federal Reserve System was created on December 23, 1913

So just how bad has the situation become?

Personal/Consumer Taxes & Fees (partial list)

• Federal income tax.
• State income tax.
• Local income tax.
• Employee social security tax (your employer pays the other half).
• Employee Medicare tax (your employer pays the other half).
• Property taxes.
• Road toll charges.
• State sales tax.
• Driver's license renewal fee.
• TV Cable/Satellite fees & taxes.
• Federal telephone surtax, excise tax, and universal surcharge.
• State telephone excise tax and surcharge.
• Telephone minimum usage and recurring/nonrecurring charges tax.
• Gas/electric bill fees & taxes.
• Water/sewer fees & taxes.
• Cigarette tax.
• Alcohol tax.
• Federal gasoline tax.
• State gasoline tax.
• Local gasoline tax.
• Federal inheritance tax.
• State inheritance tax.
• Gift tax.
• Bridge toll charges.
• Marriage license.
• Hunting license.
• Fishing license.
• Bike license fee.
• Dog permit/license.
• State park permit.
• Watercraft registration & licensing fees.
• Sports stadium tax.
• Bike/nature trail permit.
• Court case filing fee.
• Retirement account early withdrawal penalty.
• Individual health insurance mandate tax.
• Hotel stay tax.
• Plastic surgery surcharge.
• Soda/fatty-food tax.
• Air transportation tax.
• Electronic transmission of tax return fees.
• Passport application/renewal fee.
• Luxury & gas-guzzler car taxes.
• New car surcharge.
• License plate and car ownership transfer taxes.
• Yacht and luxury boat taxes.
• Jewelry taxes & surcharges.
• State/local school tax.
• Recreational vehicle tax.
• Special assessments for road repairs or construction.
• Gun ownership permit.
• Kiddie tax (IRS form 8615).
• Fuel gross receipts tax.
• Waste Management tax.
• Oil and gas assessment tax.
• Use taxes (on out-of-state purchase).
• IRA rollover tax/withdrawal penalties.
• Tax on non-qualified health saving account distributions.
• Individual and small business surtax (page 336 of Obamacare).
• Estimated income tax underpayment penalty.
• Alternative Minimum Tax on income. 

Business Taxes & Fees.

• Federal corporate income tax.
• State corporate income tax.
• Tax registration fee for new businesses.
• Employer social security tax.
• Employer Medicare tax.
• Federal unemployment tax.
• State unemployment tax.
• Business registration renewal tax.
• Worker's compensation tax.
• Tax on imported/exported goods.
• Oil storage/inspection fees.
• Employer health insurance mandate tax.
• Excise Tax on Charitable Hospitals (page 2001/Sec. 9007 of Obamacare).
• Tax on Innovator Drug Companies (Page 2010/Sec. 9008 of Obamacare).
• Tax on Medical Device Manufacturers (Page 2020/Sec. 9009 of Obamacare).
• Tax on Health Insurers (Page 2026/Sec. 9010 of Obamacare).
• Excise Tax on Comprehensive Health Insurance Plans, i.e. "Cadillac" plans.
• Tax on indoor tanning services.
• Utility users tax.
• Internet transaction fee (passed in California; being considered in other states and at federal level).
• Professional license fee (accountants, lawyers, barbers, dentists, plumbers, etc.).
• Franchise business tax.
• Tourism and concession license fee.
• Wiring inspection fees.
• Household employment tax.
• Biodiesel fuel tax.
• FDIC tax (insurance premium on bank deposits).
• Electronic waste recycling fee.
• Hazardous material disposal fee.
• Food & beverage license fee.
• Estimated income tax underpayment penalty.
• Building/construction permit.
• Zoning permit.
• Fire inspection fee.
• Well permit tax.
• Sales and Use tax seller's permit.
• Commercial driver's license fee.
• Bank ATM transaction tax.
• Occupation taxes and fees (annual charges required for a host of professions).

Congress was assigned one very important job: The Purse.
The Federal Government no longer operates on a Budget, but borrows as needed.
How long can this go on?

Your children are the future citizens and Tax Payers.

US Federal Government Must Retract or The Beacon of Liberty Will Cease to Exist

Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government...

The federal government expanded dramatically in the 20th century and has continued growing in the 21st. Between 1900 and 2012, federal government receipts increased from 3.0 percent of the economy’s output to 16.5 percent, and federal expenditures rose from 2.7 percent of economic output to 24.0 percent.

The Growth of Government in America

American government has far outgrown the limits set by our founders in the Constitution.

Let us begin with a simple but vitally important proposition: Government in America was never supposed to engage in the multitude of activities that it does today.

When the United States gained its independence more than 200 years ago, the founding fathers envisioned a national government with explicit and restricted responsibilities. These responsibilities pertained mainly to protecting the security of the nation and ensuring “domestic tranquility,” which meant preserving public safety. Especially in the realm of domestic affairs the founders foresaw very limited government interference in the daily lives of its citizens. The founders did not create a Department of Commerce, a Department of Education, or a Department of Housing and Urban Development. This was not an oversight: They simply never imagined that the national government would take an active role in such activities.

The minimal government involvement in the domestic economy would be funded and delivered at the state and local levels. Even that involvement was to be restricted by Congress’ authority over interstate cornmerce, an authority granted to Congress by the founders for the purpose of preventing the state governments from interfering with commerce.

Recognizing the propensity of governments to grow, the people added the Bill of Rights to the Constitution as an additional layer of protection for the rights of individuals against the state. The Bill of Rights was to ensure that government would never grow so large that it could trample on the individual and economic liberties of American citizens. These liberties are eroding. The United States has been gradually transformed from a nation with almost no government presence in the marketplace to one in which the government is now the predominant actor in the domestic economy.

Robert Higgs in 1990:

An index of the size of government is government employment. Early in the 20th century, federal, state, and local governments employed about 4 percent of the civilian labor force. By 1950, government employment had risen to about 10 percent. During the past 40 years, government employment rose and fell: it reached a peak in the mid-1970s at nearly 16 percent, then fell to its present level of roughly 14 percent—that is, one worker in every seven. (This figure doesn’t include the two million members of the armed forces.)

Although the employment ratio seems at first glance to indicate a recent decline in the government’s size, one should not jump to that conclusion. Many people who are classified as members of the private labor force actually work for governments as contractors (or employees or subcontractors of contractors). Between 1980 and 1987, for example, about a million additional workers found jobs in the defense industries—virtually all of them, obviously, working on projects set in motion and financed by the government. Similar changes have occurred elsewhere as governments have “privatized” more functions by contracting out the performance of tasks previously performed by workers on the regular government payroll.

Inflation Reduction Act – the massive spending bill just passed by Senate Democrats – includes provisions to hire 87,000 new Internal Revenue Service agents. The number seems too big to believe. The IRS has just 93,654 employees, according to the Office of Personnel Management. Why would Congress, in one bill, increase the IRS workforce by something like 92%? It doesn’t seem possible. It certainly doesn’t seem wise.

IRS Larger Than Pentagon, State Department, FBI, and Border Patrol Combined

Excessive Taxation Is Theft! You're Using the Power of the Federal Government for Armed Robbery

In Response to Arizona Rep. Andy Biggs

Source Washington Examiner August 7th

Call to tax Mexico $2,000 per illegal immigrant to pay for Trump’s wall

The idea is not a bad one, but strictly speaking is insufficient and is missing the point.

Requesting a fine for every person crossing the border illegally is somewhat inapplicable and lacks purpose.

If one considers that every individual caught at the border is a good enough base, I'd say: what about all those who do not get caught?

What about all the expenses incurred while detained and until they are returned to their respective countries?

Immigration problem solved

A more objective and rewarding approach should be taken.

Let's make a deal !

• The average American pays $8,000 in Federal Taxes per year.
• For every American (320,000,000) the Federal Government holds 7 Acres of Land. (2,27 Billions Acres per head comes to about 7 Acres per person.)

Categories of Immigrants:

Legal Applications

• Based on a merit system should be the norm. Merit system has been somewhat used in the past. Including talented individuals or financially well off individuals, this category of people has always been favored for immigrating.
• By sponsor is also the other method. Sponsors have ranged from employers to family members. In either case, the sponsor becomes the financial guarantor for the new resident. (this is how I immigrated, this how my mother immigrated)
• By marriage.

Breaking the Law

Illegally crossing the border; getting caught or not; Asking for asylum and other reasons can be dealt with by making a deal with the country of origin or the residency seeker himself.

Each working age immigrant should able to pay $8,000 per year to Federal Coffers (working or not working). If not, the country of origin should pay the remaining yearly balance. If Lawyers and their fees are eliminated, a big chunk of this money should be available considering how lawyers take advantage of illegal immigrants seeking legalization.

OR

The country of origin must provide the US Federal government a parcel of Land of 7 acres closest to US mainland as compensation for the inclusion into the family. The Land parcel would give the individual citizenship status.

In conclusion

Making a deal could be quite advantageous for the US. Increased funds or land areas could provide a nice buffer zone for the southern border. Who knows, it could increase the American Empire, with real tangible expansion.

Another way look at it

By purchase, Trade (Puerto Rico and...) or conquest.
Creation of 2 New States (New Texas and South California)
Build the North American Canal, and Wall.

250 Billion Dollars

The next time you hear a politician use the 
Word 'billion' in a casual manner, think about whether you want the 'politicians' spending
YOUR tax money . 

A billion is a difficult number to comprehend, 
But one advertising agency did a good job of putting that figure into some perspective in one of its releases.

• A billion seconds ago it was 1959.
• A billion minutes ago Jesus was alive .
• A billion hours ago our ancestors were living in the Stone Age.
• A billion days ago no-one walked on the earth on two feet.
• A billion dollars ago was only 8 hours and 20 minutes, at the rate our government is spending it.

While this thought is still fresh in our brain...
let's take a look at New Orleans ...
It's amazing what you can learn with some simple division.

Louisiana Senator, 
Mary Landrieu (D)
was asking Congress for 
250 BILLION DOLLARS
To rebuild New Orleans . Interesting number...
What does it mean?

• Well .. If you are one of the 484,674 residents of New Orleans (every man, woman and child) You each get $516,528
• Or... If you have one of the 188,251 homes in New Orleans , your home gets $1,329,787.
• Or.. If you are a family of four... Your family gets $2,066,012.

Washington, D.C. 

HELLO! 
Are all your calculators broken??

Building Permit Tax 
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax (Fed)
Federal Unemployment Tax (FU TA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Tax
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service charge Taxes
Social Security Tax
Road Usage Tax (Truckers)
Sales Taxes
Recreational Vehicle Tax
School Tax 
State Income Tax 
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax 
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
(And to think, we left British Rule to avoid so many taxes)

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago... 
And our nation was the most prosperous in the world.

We had absolutely no national debt. 
We had the largest middle class in the world.
And Mom stayed home to raise the kids.

What happened? 
Can you spell
'politicians!

by Marie Cogdill

Tax Cuts Are Here Already for Some, Soon for You

Well, We All forgot about it, mostly because of the negative Press and the comments of the outgoing 2nd party of Congress. (I suspect that 2nd party will soon leave it's position to the Libertarians)

Fact check: Democrats are repeating a misleading talking point about tax cuts (by USA Today)

But no, seriously, it has already hit home for some, and very soon for your next paycheck.

Historical Tax Reform

A few hours since the House voted to send the final version of the Tax Cuts and Jobs Act to President Trump:

• 'AT&T' just announced that it will give 200,000 employees a $1,000 bonus once the bill is signed into law. In addition, the company plans to keep its promise to invest an additional $1 billion in the United States.
• Boeing is taking action as well, declaring that it will make a $300 million employee-related and charitable investment thanks to tax reform.
• Fifth Third to raise hourly wages to $15/hour & give employees $1,000 bonus.

To me, one of the most important item is that the 13 million individuals forced to pay a fine on their income tax, because of no medical insurance at Obamacare standard minimum: Well, they will no longer have to pay it, and instead might be able to purchase a minimal emergency coverage.

I have been raging to think that government could force someone to buy something.

Of course, the NEW child tax Credit will double (thanks Senator Rubio of Florida for your stubborn requirement)

How much each individual will save on their paycheck in February will remain to be seen then.

That a family earning $70,000 a year will keep approximately an extra $2000 a year.... !

It is true that residents of states with an already High State Tax will have to pay more.
Understandably, their Republican Representatives (12 of them), did vote against the tax Reform.
Apparently, the 3 States the most penalized are California, New York, and New Jersey.
I surely hope their State legislature will hold Emergency meetings in order to reduce the Tax burden of their constituents (at the State level).

Disaster Relief, what a great gov we have!

• IRS will be waiving Federal taxes 2017 for families affected by disasters ! Texas + Florida !
• Florida will reimburse all Sales taxes to residents affected by Irma, for the next 6 months.
• Texas will reimburse all Sales taxes to residents affected by Harvey for the next 8 months.

Wouldn't that be a fitting response for relief by our State & Federal governments?

Let's not dream. They are NOT that benevolent.

Notes: September 26th 2017
Above, was my sarcasm regarding government helping people. With a little time, one can observe that the only thing Governments (Federal and State) Are willing to do, is to differ tax payments for a little while.

That is what 'THEY' call Relief!

By no means do they intend to absolve taxes for the residents of disaster areas. And yes, disaster is what it should be called.

No, Governments will still take your taxes, knowing the hardships families across a few states, will endure, regardless.

In some ares of Texas, residents still call it: "a war zone". Yet, the Federal Government has NO intention of halting tax payments from their pay checks. No, those taxes are still withheld, and for those who didn't pay enough, they will have to pay more. IRS did do a small favor to residents of disaster areas, a delay in filling their taxes.

"Congressional Republicans may send Hurricane Harvey aid in multiple installments rather than one large lump sum as Congress did in response to Hurricane Sandy. And it could take months for Congress to deliver, according to Republican lawmakers."

In Florida, a normal deductible is $6,000 from an insurance claim after the damages done by Irma.

And in Florida, residents are still paying their taxes to the Federal Government on every paycheck they earn.

• For an average family, such a deductible is a heavy burden that will affect their lives for quite a while.
• For a retired, fixed income, or near retirement disabled person, it is a very hard choice to make. Spend $6,000 ? Or fix the home to a minimum?

Considering the lack of funds most residents will have in the near future, one can only imagine the minimal spending that will affect the local economies.

Yes, the construction companies and contractors will see huge increase in their income for a short while.

Another interesting note is that garbage collection companies have taken some time off in the aftermath of Irma. That to me is nonsense. Debris will seem to clutter side walks for a while.

If government was truly here to help:

Shouldn't they send military trucks and personnel to clear all that mess?

Wouldn't that small action spell some relief?

Puerto Rico after Maria. Note: Most Puerto Ricans do not pay Federal Income Tax. Let's see the help the Island gets.