Tuesday, September 18, 2012

Mitt Romney and the 47% Solution



In light of the latest Romney debacle, I think the proper question Mr. Romney should be asking American citizens today amid all the media mewing about the "47%" might be: “how do you run a democracy when almost half of its citizens do not pay income taxes?”  Let us be clear this IS NOT a question of whether Governor Romney “understands” or “relates to” the American electorate it is a basic question regarding citizenship in our country.  I would be interested in hearing Mr. Obama’s response to that question.

The media is no help on this matter, I know taxes are in my blood but I expect intelligent adults to know that there is a difference between income taxes and “payroll”/FICA taxes.  There are 2 elements to “payroll” taxes, Social Security and Medicare.  These amounts are used to fund the benefits/entitlements of these 2 programs that many Americans enjoy.  Income taxes are the county’s “general fund” (so to speak) that pays for everything else.  While I have had this argument with some very intelligent people I see these as 2 different taxes and as such I do not think that “payroll”/FICA and income taxes should be lumped together.     

But a serious question remains: how do you engage an electorate on important issues regarding the country’s finances and economy when they have no “skin in the game?”  Whey should they even care about treasury draining wars and entitlements, they aren’t paying for them (of course to a frightening degree nobody is paying for them as they are funded by the U.S. Treasury printing and borrowing money – but that is another story).

How does a democracy function effectively in such as corrupt and disconnected economic environment; as we seem to prove every day, it does not. 

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