THE 2012 UNITED STATES NATIONAL ELECTION
We are all distressed at what we consider “abuses” in our entitlement system. Everyone has antidotal examples of generational welfare reliance. There is clear documentation of public employees maximizing their retirementsby working excessive overtime during the last three years upon which their pension is based. This is entirely legal. Constrution workers have for decades worked during the summer and gone on unemployment every winter. They represent that they are looking for work such that they meet the unemployment criteria. If there is a flaw in the administration of that system, it should be addressed. Otherwise, they are simply doing that which is legal and is in their best interests.
At a higher level of opportunism, Romney, Buffet and Gates pay taxes at a 14% rate. Apple paid a 9.8% rate on income of billions due literally to laundering their income through multiple, traceable, legal out of country accounts. GE paid no taxes on their 2010 income. All these tax liabilities were lower than what would be expected due to what are called “loop holes” in the US Tax Code. What all the above actions have in common is that they are all legal. The moral to the story is that every private person, every private corporation does that which is in its best interest. Every person and corporation seeks to maximize all the opportuniteis the law allows. This is human nature.
The question is “What is the best solution?”. It appears, according to Romney, Ryan and Grovner Norquist, reducing social benefits as well as earned and negotiated contractual entitlements while not touching the tax code other than reducing tax assessments is the promoted Republican Plan. The Democrats take the position, apparently, that modifying tax loop holes on capital gains, oil subsidies, off shore bank and investment accounts, special corporate provisions together with increasing income taxes, particularly on the higher wage earners, is the route to take.
The 2012 election will set the course the country will follow. It will likely go a very long way in defining the future rights, prospects and possibly even the continued existence of the middle class. Obviously, no one knows exactly what the future will bring. Either path brings with it significant unknowns and risks.
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