The Gross National Debt

Thursday, December 8, 2011

Two of these things are just alike...

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What links these two articles?
http://www.reuters.com/article/2011/12/07/astrazeneca-jobs-idUSL5E7N74JQ20111207

http://www.moneytalksnews.com/2011/12/08/online-sales-tax-may-be-coming-soon-3-ways-to-avoid-paying-more-taxes-now
Add caption

There are several correct answers.

The answer I'm looking for is disparate at first. I shall give you the answer and then tie 'em together.

On the first, jobs are leaving the US and going to China.

On the second, Congress is considering passing a law to make stores collect sales tax online.

 What ties these together? Cognitive dissonance.

There's your connection.

Still not making sense?

On the first, people are mad that jobs are leaving the United States. Jobs for Americans. Money in American pockets. Keeping the US economy turning.
Anyone can do it!

On the second, people are mad that government is implementing a national effort to collect sales tax. "It's my money. I shop online to save sales tax. WTH?"

Drawing a connection yet?

I now ask you - what do you want from government? You like roads in good shape? Ambulance services? Schools? Law enforcement? Etc Etc Etc

How are these things paid for?

Money, money generated from people who earn and spend money. People who have jobs make money and spend money. No job, no money, no spending, no taxes generated, government can't provide services.

Am I making a connection yet?

Fact is most state governments in the US and most local governments across the nation rely heavily on sales tax dollars to provide the very services you want and also complain about paying for. Those roads you use to get to and from work, sales tax foots a lot of the bill for them. The internet you use to connect and shop online (and read this), the very root is a government network.


You should support a national sales tax effort because it means more sales tax dollars for your state and community. That means lower taxes in other places.

If you are mad about jobs leaving the US, that's good. So am I. This means less money for local communities and local governments to do what they need to do.

If you are mad about the sales tax idea at the same time, you're logic train derailed.

Both are very important to economic development. Both matter a lot to the local, state and national economy.

I don't have the numbers (no one really does) but I suspect if sales tax was collected on internet sales for my community, it could easily amount to a mil of taxes ($60,000) a year in my town. That's tax dollars equal to a new and very large industry setting up shop here. That tax dollars that can be used to entice new industry and development and retail and keep existing ones on hand. It will go a long way in my school system too.
How it happens.

If you support the national effort for Fair tax (a federal sales tax which I don't support) and don't support the national collection of local and state sales taxes, then your logic train derailed a long way from the station.

It is economic development. Yeah, it's complicated. But unless you are intrinsically involved in economic development you probably don't understand why a sales tax is so important, just like jobs.

You are probably going to disagree with me. Is OK. But I ask you, have you ever opened, from the ground up, a retail business employing 20 people? Ever started an industry with a gross bottom line of more than $1 million a year? Ever been involved in the superfine details which cause one of these businesses to happen? Do you know how your government spends money and I mean right down to how much is spend on cold patch every year to fill in potholes? Do you know how much the school system spends annually on mowing grass?

I'm gonna sound like an ass here. But, it's still going to be right.  If you don't have that kind of experience, then I suggest you don't really know what economic development, which includes sales taxes as well as jobs, is all about.

And finally
Cause I'm still peeved at the Rock & Roll Hall of Fame.

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