
Archive for December, 2002
Posted by taxguru on December 13, 2002
Unintended Consequences
This is the term analysts use when commenting on how things in the real world turn out differently than they had expected based on their forecasts using static analysis, where they assume changes in taxes have no affect on people’s behavior. Anyone with half a brain could have figured that the piling on of taxes on cigarettes would lead to smuggling and counterfeiting of the items. Our rulers assumed that people would buy just as many packs from the same suppliers as before the new taxes.
That these things are happening more frequently as taxes are raised shouldn’t be a surprise to anyone grounded in reality. What never ceases to baffle me is how the morons who weren’t able to anticipate this reaction to the higher taxes are still in power.
KMK
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Posted by taxguru on December 11, 2002
Postal Service May Be Urged to Privatize
Here’s an idea that’s long overdue. Remove the Post Office’s monopoly power and make them compete with UPS, FedEx and new services on a level playing field. I doubt that a private for-profit corporation would make anywhere near as many idiotic operating decisions as the bozos currently running the USPS.
Here’s just one recent local example. In what is most likely a typical logistical decision by the USPS geniuses, the regional managers here in Arkansas have decided that the Harrison mail, which is sent from within Harrison and sorted separately from mail with other destinations, will be sent an hour and a half away to Fayetteville, Arkansas to be sorted and then returned to Harrison for delivery by the carriers. So, in the tiny town of Harrison, it will take at least three days for mail sent from inside Harrison to be delivered inside Harrison. This is ripe for a new company to take over local deliveries. I’m sure it’s similar all around the country.
KMK
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Posted by taxguru on December 11, 2002
GOP Wimps
It was too good to be true to believe that the Left Coast Republicans could actually have the guts to start recall proceedings against any of their elected officials who vote for higher taxes. The person who proposed that is now being pilloried & censured by the party’s executive board.
If both big parties see nothing wrong with continuing to squeeze the taxpayers, who is looking out for the taxpayers’ interest? It was this very attitude in the PRC that made me want to leave ten years ago after 38 years in what I had always imagined would be my life-long home.
As this article describes, a short-sighted move by the rulers in Sacramento to dig out of the current fiscal problems by raising taxes will just end up making things worse for the PRC as more businesses and taxpayers finally reach their limits and bail.
KMK
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