Common Sense Has Taken A Holiday

GS Don Morris, Ph.d.


Thomas Paine’s, Common Sense,( published in 1776) challenged the authority of the British government and the royal monarchy. I am particularly fond of this line: “"I offer nothing more than simple facts, plain arguments, and common sense . . ." Some have suggested that common sense is: sound practical judgment; "I can't see the sense in doing it now"; "he hasn't got the sense God gave little green apples". Basically it is the ability to think clearly, use sound yet practical judgment, and make decisions based upon facts rather than feelings, wishes and politically correct influences.
As we examine the plethora of issues facing us daily, observation of our collective behavior suggests that common sense must be on vacation. Let us only examine the question of taxes. Now I am not an economist although I have successfully run two businesses, owned and sold multiple homes and created a reasonable retirement plan. This alone gives me no credibility although I have found over a 40-year adult life (so far) that application of a few basic practices has helped create a comfortable, albeit not wealthy lifestyle.

What has seemed to work well are some of the following beliefs:
· Spend only what you make
· Work extra jobs if you need additional money and/or secure a better paying job
· Avoid buying items/services “on time” if you can not pay off your credit card at the end of each month
· Create a budget, always fund your savings accounts first, pay your monthly recurring bills next and then what is left is your discretionary money for the remainder of the month
· Reduce expenses wherever and whenever possible
· Continue to dream big!

More or less this has been successful not only for myself but also for many others living in today’s world of consumer consumption as advocated all around us 24/7. Taxes are a part of everyone’s recurring expenses we all pay them, daily, weekly, monthly, quarterly and/or annually. I received my paycheck once a month. I checked the gross income and then the net income after the various governments took their share. Thus my ability to secure products and services rested with the net amount. Yes, I would grumble how much the ‘government” took from me however I realized this was part of my ongoing monthly expenses. Nevertheless, agitation aside, I did have money each month-to do with as I desired. I suspect the same is true for most of us. Of course, the dollar amounts vary across our society.

How is it then that so many people favor increasing their taxes? Help me understand why you think this is a good idea. Now, I am not talking about comparative tax amounts across income levels, that’s for another piece. I am only talking about why you want to have more of your hard earned money taxed at a greater rate thereby reducing your take home pay?

Let me talk about this one other way. Consider a person earns $4500 a month and pays roughly 22% of that amount in collective taxes ($990) leaving $3510 to “live on”. Don’t get caught up in the actual dollar figures, rather attend to the common sense concept that now follows. Using the same earned income figure ($4500) and you accept an increase of 8% in your taxes, your take home pay is now $3150. With all of your recurring bills remaining the same, income level remaining the same, you now have roughly $400 each month fewer discretionary dollars to spend. Think you might apply one of the above lifestyle beliefs, say reduce expenses by buying less? Of course, you can simply keep charging products and services on your credit card, getting more and more in debt, but hey it is your life to manage. Now multiply this by millions of people-is it not true that less discretionary monies will be in existence in our economy? With more people purchasing fewer products and services, what do you think is now going to happen to our economy? Might we also not need as many workers? Might more and more people be out of work, what does this then mean for our economy? The spiral goes on and on and yet you want to have yours and my taxes raised? Huh?

Before you vote ask the candidates for specifics regarding their economical plans for this country. Secure information about the rise in taxes as it will directly affect you. Avoid the rhetoric of class envy-you know the same tired argument that pits the wealthy against the rest of us. It is the “yeah but” argument that is designed to divert your attention away from the main play-taking taxes from you! This is nothing but a magician’s trick, sleight of hand with attention diversion. We are smarter than this-demand common sense from the politicians-you expect no less from yourself.