About Me

In writing the "About Me" portion of this blog I thought about the purpose of the blog - namely, preventing the growth of Socialism & stopping the Death Of Democracy in the American Republic & returning her to the "liberty to abundance" stage of our history. One word descriptions of people's philosophies or purposes are quite often inadequate. I feel that I am "liberal" meaning that I am broad minded, independent, generous, hospitable, & magnanimous. Under these terms "liberal" is a perfectly good word that has been corrupted over the years to mean the person is a left-winger or as Mark Levin more accurately wrote in his book "Liberty & Tyranny" a "statist" - someone looking for government or state control of society. I am certainly not that & have dedicated the blog to fighting this. I believe that I find what I am when I consider whether or not I am a "conservative" & specifically when I ask what is it that I am trying to conserve? It is the libertarian principles that America was founded upon & originally followed. That is the Return To Excellence that this blog is named for & is all about.

Friday, February 6, 2015

WSJ Letter Published - Many Senior Citizens Live On Declining Incomes

click on graph to enlarge
 
Below is my letter that was published today in the WSJ that responded to a letter expressing concern that the federal gasoline tax had not been raised since 1993.  The writer of that letter asked who today would be willing to live on what they made in 1993.  I used the above graph to point out that many senior citizens don't live on such a fixed income – they live on a declining one.
 
Dear Editor,
 

In "Let's Grow Up and Raise the Gas Tax" (Letters, Feb. 2), Chris Daly asks who today would be "willing to live on what they made in 1993?" He makes the point that the federal gasoline tax hasn't increased in 22 years and accordingly an increase is needed to keep our interstate highways in good repair.

Mr. Daly's question describes exactly what many senior citizens living on Social Security and CD interest income face today. In 1993 five-year CDs yielded 5% and even had a few bounces up until 2000 when rates began to drop to the current 1% level—an 80% decline.

If you assume that 50% of a senior's income is indexed to inflation through Social Security and the other 50% has experienced an 80% decline in 2000 dollars, we are asking seniors to live on less than 60% of their former income, especially considering that the CD interest income was never indexed to inflation. Wealth spend down of the original principal has also obviously occurred in order for seniors to maintain any semblance of a consistent standard of living.

Highways can receive funds from tolls (e.g., N.J. Turnpike), state excise taxes and general revenue—financed of course from subsidies received from senior citizens lower interest income that has been lowered over the years by the artificial manipulation of the Fed.

 

Posted by ReturnToExcellence.net at 9:56 AM

4 comments:

  1. JRFebruary 6, 2015 at 4:11 PM

    Too bad they didn't show the increase in property tax when they want to raise gas tax on top of that. Tax is the largest single increase in living expenses. It affects everything. Governments are making promises we can not keep, local, state, and federal. They must do what Walker did let the people pay there own union dues with their own check, envelop and stamp.

    ReplyDelete
  2. JJFebruary 6, 2015 at 6:37 PM

    Congratulations! I saw your letter in the WSJ this morning. Well done, Doug.

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  3. Economics501February 6, 2015 at 9:55 PM

    Doug - great points in your WSJ letter. Here is my take on what the statists are up to:

    Gas taxes and road tolls are both regressive. The elderly, lower and middle classes, along with small businesses (our primary new jobs engine), are most impacted.

    Statist politicians, many who never worked in the private economy, are using lower gas prices as a pretext to continue their drive to tax and spend more, increase an already bloated and over reaching government.

    This Socialist drive must stop and reverse. It is the private economic sector, not public, that creates new products, industries, new jobs that self sustain them and create ancillary jobs.

    One solution is to pass term limits at federal, state, and local government. High time all politicians learn how to live in the real economic world.

    ReplyDelete
  4. The HistorianFebruary 8, 2015 at 6:25 PM

    Great article, still have CDs paying 5% with Capital One,maturity dates this year and 2018.

    ReplyDelete

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