I love taxes and regulations!

Printed in the Reader Weekly, 2013-10-31 and found at http://duluthreader.com/articles/2013/10/31/2364_party_of_one-3.

I submitted it as follows; I did remove from this copy the missing section in last week's Reader Weekly.

Well, not all that much.  What I like is all the benefits that taxes and regulations bring me and many other people.

Like many, I find paying taxes a chore.  I have to set aside money twice a year for property taxes.  I have to keep lots of records and fill out detailed forms to calculate how much federal and state income tax I owe.  And because I don’t have withholding on all of my income, I have to estimate these taxes quarterly and pay a portion of the presumed shortfall.

A few years ago I had a sore chest, extreme sweating, and nausea.  Was this a heart attack?  Don’t hesitate; call 9-1-1!  Within five minutes a fire truck with four fire fighters/emergency medical technicians arrived.  Without going into all the details, I was hospitalized but it was determined that I did not have a heart attack.  My taxes, your taxes, and the taxes of many others paid for this quick response.

Was this an entitlement?

One of the ER doctors I saw lived in our house a few years before we bought it.  He was a graduate of the UMD medical school.  State taxes paid some of the cost of operating UMD.  Would there be as many doctors and nurses if they or their parents had to pay the full cost of their education, starting with elementary school?

Is this an entitlement?

Keep in mind George Washington’s farewell address, which contained among much other ignored advice:

“[I]t is essential that you should practically bear in mind, that towards the payment of debts there must be Revenue; that to have Revenue there must be taxes; that no taxes can be devised, which are not more or less inconvenient and unpleasant…”

Most of us drive regularly on streets and our commerce depends on the roads.  They cost a lot more than the streets of George Washington’s time.  And city streets like George Washington rode his horse on still existed in my lifetime.  See “11 Traveled Dirt Streets to Be Hard Surfaced at No Cost to Property”, Kansas City Star, 1944-04-06.

Are hard-surfaced streets an entitlement?

Red lights are a bothersome regulation.  Why should I wait while somebody comes by on the cross street?  Well, when I’m driving on the cross street, I appreciate that the other traffic will stop periodically so that I may drive into the intersection safely.

Requiring auto insurance is a bothersome regulation.  But it sure is nice when another person is at fault for banging my car that their insurance will pay for the damage.  I think it was in Michigan that a driver came out from a parking lot and put a dent in the side of our car.  He didn’t stop, and so I made a U-turn and followed him a block or two before he stopped.  We pleasantly exchanged information and we went on our way.  But after a few blocks we saw his insurance agency.  We stopped in and related the incident.  Oh, but he buys the insurance and cancels within a week or so.  Off we went to the police station and told our story again.  Wouldn’t it be wonderful if everybody followed these “burdensome” regulations?

Among my allergies is quaternium-15, an ingredient in many lotions.  Imagine my surprise when a hypoallergenic lotion contained quaternium-15.  If regulations didn’t require a list of ingredients, would I wind up having an allergic reaction and not know why?

My wife has to stay away from soy lecithin.  Dark chocolate is a healthy treat.  Many dark chocolate bars contain soy lecithin.  If regulations didn’t require the labeling of ingredients, what would happen to her if she ingested soy lecithin unknowingly?

When all the nutrition information was mandated on foods, I pooh poohed it.  Come on, you know a candy bar has lots of calories; so stay away from candy bars if you have a weight problem.  I recently had a colonoscopy and was told not to take iron before the procedure.  Chocolate was one of the OK foods.  But, dark chocolate contains 6 to 35 percent of the daily value of iron.  If I had that much iron would it have changed the diagnosis?  I stayed away from chocolate and I had a negative result.  Without the regulated nutritional information I might have had a false positive result.

Many corporations regard regulations against air and water pollution as burdensome and anti-free market.  Many studies have shown that many of the chemicals in our environment are causing brain impairment in children and that they don’t perform well in school.  Oh, poor school performance is not caused by pollution, it’s the “greedy teachers’ unions”!

Justice Oliver Wendell Holmes, Jr. supposedly said he liked taxes, “They buy civilization.”  I would add without regulation, we would not have civilization.

Entitlement is not a dirty word

Many are calling for a cutback in "entitlements" as a means of "cutting spending"; spending being another "dirty word".  The subtext of the use of "entitlement" is that the recipients are not deserving of the payments from Social Security, Medicare, or pensions for government employees.

My wife and I each get a small monthly pension payment from a company that we both had worked for long ago.  This pension was paid for by the company.  It was one of the terms of our employment.  Is this an entitlement that we don't deserve?  Should the company take the funds in the pension trust to spend elsewhere to balance its budget?

A fired CEO is granted a life-time pension far greater than many people even dream of for a regular income.  Isn't this an entitlement?  Maybe it's a bribe not to sue the company for wrongful termination.  We don't hear many who complain about Social Security being an entitlement complaining about how shareholder value is being decreased by these give-aways.

Many shareholders expect regular dividends from companies whose shares they own.  Isn't this an entitlement?  Shouldn't companies paying large dividends cut this spending so they can invest and create more jobs?

Social Security is a contract between the worker and the Federal government.  The worker (and employer) make payments to the Social Security Trust Fund based on the worker's wages.  The worker has been promised benefits in relation to the amount of payments made.  The employer is relieved of having a pension fund or can at least have a bit smaller pension fund.  Isn't Social Security an entitlement just like company pensions, CEO pensions, and dividends?  Why is one entitlement bad and why are the others good?

I think there are two reasons.

First, Social Security is bad because it is a government program; government programs are bad because government can't do anything right (except give subsidies to favored companies).  My wife just said, "Bail out bankers who plundered customer resources".  Aren't the super-big bonuses an entitlement?

Second, Social Security funds are placed in interest-bearing government securities.    These securities are part of the government debt and debt is bad.  Somehow, it is not bad for large corporations to hold these securities and be paid interest.

One can make all kinds of arguments about how much or how little is paid from Social Security and under what conditions.  But as long as people expect Social Security checks on retirement AND pay the payroll tax, we should consider Social Security not an entitlement, but a contract.