My liberal friends in Washington State frequently remark that the reason we need to raise the minimum wage so regularly and maintain our “prevailing wage” standards for public works is to “combat the downward pressure on the middle class”. My question is: From whence does this constant pressure on the middle class press down? It is my contention the majority of this pressure comes from governmental policies making life more and more expensive by instituting price inflating regulations and ever increasing taxes. Specifically, the last forty years of democrat dominance in the Washington State House and Senate along with an ever expanding linage of Democrat governors has made living in Washington another liberal paradise like California. It would seem the answer to every problem ever encountered by our esteemed legislature would be corrected by merely raising this or that tax and/or levying another fee. In Washington, a fee is a direct charge to a group of people would benefit from the state service directly and a tax is for those who do not directly benefit but none the less bear the responsibility to pay because it is their privilege to be citizens of Washington. See what I mean? One must possess a degree in legalese to determine your rights and responsibilities under our benevolent leadership. Where I come from, there is no debate about what is (or is not) a tax. This could only be a conversation held by law students and professors in some ivory tower. Never would it be debated by local talk show hosts during the morning commute. As an example, recently Washington State sustained a six cent per gallon and then a nine cent per gallon tax increase on motor fuels. These levees were enacted for the repair and replacement of bridges and roads. Silly me and here I was, thinking that’s what the already stout gas tax was going for…you know, the repair and replacement of bridges and roads. The folks who are making $150,000 per year were affected little, if any. The folks at the bottom of the income brackets will be most affected because these increases represent a greater percent of their income taken away from necessities like food and lodging. Of course, the rising costs of fuel (now the third highest fuel tax in the United States) contributes to the inflation rate and cost of living, to which minimum wages are legally tied. Bottom line: The State raises taxes. The cost of living goes up. The minimum wage goes up. Prevailing wage goes up. The cost of doing business for the State goes up paying prevailing wage. The legislature calls for more taxes and fees to make up the difference and the whole process starts over. Meanwhile, the roads are in the same condition they have always been and our governor just suggested we place an additional $1.50 per barrel tax on refinery production for…you guessed it…repair and replacement of bridges and roads. So, I ask once again: Where does that “downward pressure” on the middle class come from? Maybe it’s just because I’m a simple kind of guy but it seems to me a few less taxes and a little less crazy spending would be better for everybody.
While rising costs of living are obviously a big problem...a bigger issue is lack of income for the regular Joe IMO Median household income is America... 1990: $48,423 2000: $53,164 2010: $49,445 Income for the top 1% is up 33% during the same time period
I'd like to add that cable tv & cellphones are not "cost of living" expences.... Entitlement is the the biggest problem I see America across the entire income spectrum.
In a nutshell, it's awful easy to spend money when it isn't yours. And just think, if you need a bit more, 1% on something isn't very much, so quite whining and pay a bit more. I'd be happy to spend your money for you!! Until EVERYONE has a stake in the game (ie taxes) and understand the ramifications of it, nothing will change. I've imagined a year where eveyone had to do quarterly taxes (no withholding), and how fast people would wake up to how much we pay in to Gov't.
I don't think the issues in today's economy have to do with what expense are or are not.The 30 years after WWII income went up across the board at an even pace, towards the end low income outpaced higher income. The past thirty years this has changed, and it's the 1% as a whole group. It's the top 10 percent of the 1 percent who is doing way better than anyone. Why has this happen ? Policy changes by both parties favor those at the top. We let it happen.
