Thursday, October 7, 2010

CLASS WARFARE IS SELF DESTRUCTION

  The current debate about the fate of the Bush tax cuts has created   self destructive behavior. I get a real kick when one group charges that the other is not paying its  'fair share ' yet no one seems to have the answer as to what is "fair" and who has the power to determine fairness.
  It is certain that there is unfairness in the tax codes.This is generally a result of our lawmakers attempting to promote an industry, sector,or group which they feel is in the best interest of our collective good. Other times it is political payback which does not  serve us well. We all tend to agree that our tax code is unfair to some, beneficial to others and way too complex and full of special breaks for many.
  The poor attack the rich saying they dont pay their fair share, dont spend, dont create jobs, inherited their money don't deserve their station in life.The rich attack the poor saying that they milk the system , are lazy ,dont want a job,prefer to collect benefits and do nothing productive.These kind of attacks are both true and not true and certainly do not lead to a productive outcome for all of us.In defense of both sides. Most rich do pay a lot of taxes , do create jobs, do invest in growth,take risks and work hard. Most of the poor do not like or want government assistance, are often ashamed to do so, would much prefer to have a job, and do pay payroll taxes.It is just not fair to attack either group.On the other side there are rich who feel entitled and do not contribute to our society and there are poor who do think they are entitled to be supported and have no desire to be productive. Fortunately I think these two groups are not the majority of their respective groups.
  I think the big difference between both groups is education and personal values.It is obvious that higher education,either technical skills or college education lead to higher rewards.Like wise values instilled by our parents, teachers and life experiences instill a self discipline and drive that allows us to do better and achieve more.A very enlightening book The Millionaire Next Door  concluded that the single most significant factor that determined the ability to become wealthy is not income but personal financial management.Thus it is not how much you make , rather how you spend and manage your money that is the best indicator of future financial stability.
 We are all better served if we quit engaging in this class warfare and  set our course on a much more simplified tax system and rid ourselves of all the special goodies that our government puts in the tax codes to reward special interests.

  
    

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