Home of Today's Common Sense

Published Brownsville Herald Dec 20, 2010

The turkey is now a very warm memory in my stomach and I was gifted with some warm fuzzy memories that fostered a real thanksgiving when my son and daughter took the time to travel from New York and Houston to visit for a week at Thanksgiving. A special treat was the presence of our first granddaughter who is now 2 years old.
I was thrilled to be able to spend that time and see the first blooms of independent personhood bloom in that little lady, so similar to her mom but a singular person on her own.
Another is that Chuck Berry, the guy who pretty much divined Rock and Roll, now 84, is still with us and will play two gigs New Year’s Eve at 8 p.m. and midnight Friday at B.B. King’s in New York City. In looking at his website it seems that he stays young by playing his music regularly around the country. Don’t miss seeing this treasure while he is still with us and remind ourselves that the Music didn’t die in 1959.
Times like these make me confident in the existence of the higher power that so many of us celebrate at this time of year. Even many of the stores in the mall are no longer afraid to wish a Merry Christmas and the Salvation Army is again welcome in many retail places.
With all of the good signs for our future evident, the seemingly never-ending world conflict and political confusion in our country genuinely concern me as well.
Probably the most alarming is the easy acceptance of socialism and tolerance of rhetoric that would make the government responsible for supplying the needs of everyone in the society.
The U.S. government seizes our money and gives it to any group thought to be needed or may be in the government’s interest, to the point that the government is the largest charity in the world, only competitive with the Catholic Church a close second.
Americans are among the largest contributors in the world. Should not charity be a private idea, certainly without so many government officials looking for ways to make the job bigger and more influential?
The bottom line is that the government wants more power and money to effect more control.
Every day politicians use various alternative methods to do this. Consider the current proposal that would vastly increase the tax on the estate of a deceased person.
On Dec. 31 the federal estate tax lapsed after having been in effect since 1916. However, without new legislation, it will roar back with a vengeance in 2011, with many other personal deductions.
A major tax reform law signed by President George W. Bush in 2001 reduced estate taxes over eight years, so that by 2009 estates worth more than $3.5 million ($7 million for married couples) were taxed at 45 percent of their value. This year the law completely repealed the tax. As we all know from the news lately, the tax legislation expires in 2011. This will set estate taxes back to their 2001 levels, which is a top rate of 55 percent on estates over $1 million.
Imagine starting a farm that grows high-quality fresh produce on enough acreage to produce a profit suitable to pay the mortgage, insurance, equipment, seeds, (natural) fertilizer, water, wages and your family cost of living.
After 40 years the farm is now profitable and the land is appraised at many times what it was when first purchased. The value of that farm may easily be worth several million dollars. In San Francisco, New York and other high-cost cities, many middle-of-the-road earners own personal property that will qualify.
Should you pass away your estate could be required to pay a tax of 55 percent of the value in excess of $1 million, which may well require the sale of the property in order to pay your death taxes.
The individual farmer is for all intents just a part of history. Is it just another step to government takeover?
It is not that far away. In a number of large cities, the government limits how much rent you can charge on some apartments regardless of the quality or value. This has caused some buildings to be abandoned because there is not enough money to keep up with the government rules and taxes.
The next step is that the building is demolished and the government builds on the land, which may be much more valuable than a living space.
We have a battle going on now in Congress that wants to make “We the people” more and more enslaved by reducing the opportunities for the private entrepreneur.
I had my chance and started two steamship companies substantially supported by private investors, as government regulations prohibited assistance. Both started to grow but engineering problems interfered in one case and Hurricane Mitch finalized the weakened enterprise.
This shows that it is possible to start and grow a business without government largess and control.
As we get into this new decade we need to get government out of our lives. Let us make our own mistakes and successes; we can do it better that way if we know we will not be forced to give up all that we have earned through our lives rather than help steer our kids toward success and enjoy the comforts we have earned. Much smaller government is no longer a nicety — it is now a need. I wish you all a Merry Christmas and a healthy and successful New Year.