the gut (and the heart)"
|Editorials by Paul Olivier
a nice political
||Both presidential candidates
suggesting that they intend to use some of the "budget surplus" to pay
down the National Debt. George W. includes a "tax break" in his proposals.
"Algore" promises to first save the Social Security and also to pay down
the ND and than some more targeted give aways.
Talking about paying down of the ND sounds
good, is a nice distraction from the real purpose. It because the
conscience and the gullibility of the American Public as it feels responsible
for coming generations, inheriting debt that they compiled. But it seems
to be forgotten what is left behind for them? If it is not all perfect,
it is still more than earlier generations left behind. If Gen. X, Y, Z
not like what they get, they can do whatever they want to make it better
or they can sell the Brooklyn Bridge.
I am not an economist and someone has
to tell me what is wrong with my understanding. The ND in great lines exists
in the form of "bonds", secure loans to the National, State and Municipal
Governmental entities of the United States by individual or institutional
lenders, at a fluctuating relatively low, around 6%, interest rate.
They are a compared to stocks, secure investment in public works. That
is, the risk of defaulting on these loans is covered by the Government
and thus by the taxpayer. Taxes, that is Your money, is the only money
the government has or can tap into to secure money they borrow or for whatever
it wants to spent money on. Many aging citizen depend on these "bonds"
or "notes" to secure income for their retirement days rather than on Social
Security benefits only. They can live from the coupons, periodic payments
of interest without having to use the principal sum. The Government pays
the interest from . . . . . . of cause the taxes it collects. Who is paying
taxes? Only the middle class and up. In general these are also the group
who make use of the security of these financial instruments. They thus
are securing their loans with their own (tax) money! In other words: "garbage
in is garbage out". Some of these bonds are "triple tax-free". However
not all. So again you pay taxes, for the favor of lending money to the
Government. Isn't that ironic?
Now how about the expected "surplus"?
The surplus is what the government is expected to overtax its citizenry
in the coming ten years. Naturally only the ones who pay taxes are qualifying
to be overtaxed. The contemporary GOP leadership philosophy is to decrease
the tax load on the taxpayer, what will be good for the economy and thus
good for all people.
socialists, better known as "democrats", don't like this surplus tax revenue
to slip out of their grubby hands, because they like to direct this "price"
to those who could keep them in power. Paying off the ND and no tax relief
would only mean, to keep the overtaxing in place and this "trillions
purse" under government and as they hope under the democrats control. And
have no elusions about the "lock box" under socialist control; there is
always more tax money to be extorted from the productive segment of the
population. Leaving out my obvious political site taking, let Greenspan
or anyone else tell me, what is wrong with my understanding of this economics
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