There is something wrong with our tax code, there is no need for the numerous length of laws around our tax code. The people want a simpler solution, one that doesn't require many to fork over 100+ dollars to have their taxes filled out for them on a yearly, some, a quarterly basis.

This weekend I thought at length of the vicious cycle that is our police departments around the nation. This relates to our IRS system as well in the process at which these government bodies grow at an unstopable rate.  We the people pay millions of dollars to have a police force, only to have them increase quotas to raise more money by giving citations to the people, to bring in more money in order to buy better equipment in order to give more citations. Some departments dedicate so much time to traffic violations and revnue creation that the real job we tax payers pay for them to do is becoming second fiddle to ensuring additional funds via citations continue to pour into the cities budgets.

With the IRS, I do not understand why it is we pay money, to ensure that we fund such a large and expensive department to ensure we pay more money.  If the tax code was more direct and simple, we wouldn't need thousands of IRS agents, harassing thousands of citizens to make sure they pay their taxes on an increasingly complex system.

The vicious cycle of spending for lesser returns is on display in every town across America with their police departments, rarely if ever does more funding mean more safety, it typically means more efficient ways to generate more money at the expense of the People.  Is there a government institution that works better the more it is funded?

I'll leave this post with a question, since did it become our governments, both local and federal, primary concern on finding ways to extract more money from the people?

Source: http://www.latimes.com/business/la-fi-state-tax31-2009oct31,0,2028140.story

Starting this Sunday, California will begin withholding up to an additional 10% of workers pay as a stop gap solution to their continuing budgetary shortfalls. The LA Times reports this isn't a tax increase as the tax payer will get their money back when they go to file their tax returns,  as the LA times notes this is a forced, interest free loan from the tax payer to the state.

This is vitally concerning as a case for the loss of liberty, and property rights in times of need determined by the state.  When the government needs your hard work, they just take it, when you just need to feed your family and you just take it, you go to prison for many years. 

This amounts to nothing but widespread legal confiscation of Californians hard work, left with a promise to give it back.    

What I ask is, where will this money come from once the state claims and spends it?  10% less money in the hands of the people sure doesn’t help the spur on a spending spree to save the economy.  Looming on the horizon is the ever pivotal holiday season, with rumors of an improving economy; this couldn’t have come at a worst time.

Good luck to those barely making it, your state just made it 10% harder on you.

Let's try to understand these numbers, before we give another 2 billion to the CARS program.  The CARS Program is already out of their 1 billion dollars authorized through congress becuase so many people have traded in their cars to recieve their 4500.00 voucher towards a new car.

This assumes the government pays out 4500.00 for each trade in.  1 billion divided by 4500.00 = 223,000 ( rounded ) units traded in.

The most popular car purchase after through this program is the Ford Focus, the brand does not matter, but we will use the low advertised price of a Ford Focus as our base number.  2009 Ford Focus: 14k - 16k ( 2009 Ford Focus Reviews, Pictures and Prices - U.S. News Rankings and Reviews )

14,000 car price - 4500 voucher = 9,500.00 in new consumer debt financed.  Let's take that new consumer debt number, and multiple it by the number of units traded in.  223,000 = 2,118,500,000 in additional Consumer DEBT!

Now congress wants another 2 billion to fund the CARS program.  When you take the numbers, add another 2 billion worth of trade ins,  you get an additional 4,237,000,000 in consumer debt.  The total CARS result is 6,355,500,000 in additional consumer debt.  This means the government took 3 million in tax payer money to give them an additional 6 billion in consumer debt.  Now that my friend is a double edge sword.

What does this really mean for the economy?  It means the economy has an additional 6 billion in debt it has to work through it's system, and that's 6 billion dollars that would not naturally go into the market through the the next few years.  The end result of this program is a much deeper hole and climb out of what we've been trying to get out of.

Government involvement in the markets do not work, they never have, they never will.  This program is sham, and the only people who benifit is the bloated car manfactures who have a failed business model, and can not turn profits without tax payer money.

Ask yourself, wouldn't you like to run a business in which the government ensures your profits?

Glenn Beck yesterday on his program mention a little interesting note about this CARS system that would have any Liberty minded person up in arms.  As a dealer principle, or the primary person who inputs all of the information into the CARS system, the system which dealerships use to process the trade-ins, the below warning is displayed.

"This application provides access to the DoT CARS system. When logged on to the CARS system, your computer is considered a Federal computer system and is the property of the U.S. Government. Any or all uses of this system and all files on this system may be intercepted, monitored, recorded, copied, audited, inspected, and disclosed to authorized CARS, DoT, and law enforcement personnel, as well as authorized officials of other agencies, both domestic and foreign."

Source: http://www.glennbeck.com/content/articles/article/198/28815/

This is completely unconstitutional.  That our government would even stoop to this level of verbage for those who must use the CARS system, is beyond reason.  Furthermore, do the dealers even have a choice?  Is it reasonable to ask them to decline that privacy warning, and NOT accept a consumers trade in?  Would the consumer shop there? 

In essence, the government institutes a hand out program for consumers, and then forces dealerships to hand over all access, and privacy of all content on their computer in order to take advantage of the American Tax Payer handout for those who can afford a new car. 

Even at a lower cost, do we really need to be bailing out those who can afford a new car right now? Who does this program truely help?  The only thing this does is temporarily support car dealerships as long as government is willing to hand over cash, and subsides the cost of a car.  Will it last forever?  What happens once the cash for clunkers funding is over?