"Williams' Law" Explains Tax Confusion

There is something about a string of zeros that mesmerizes politicians.

Any figure over $1,000 hypnotizes them so they are unable to distinguish between reality and illusion.

I have reduced this phenomenon to a fundamental principle hereafter to be known as Williams' Law:

"Political confusion increases to the square of the number of zeros following a dollar-sign, and continues until the real roles of taxing and spending appear to be reversed."

Thus we are better able to explain how national and state governments can follow conflicting tax policies simultaneously - why many congressmen call for a tax decrease when we overspend the national budget, and why many Ohio legislators advocate additional taxes when spending falls short.

If you expect to find logic hidden in this contradiction you will be as lost as Alice in Wonderland.

For example.  Senator Teddy Kennedy condemns the present U.S. budget deficit of $5,000,000,000 - but without taking a deep breath insists we increase our spending by $80,000,000,000 for a nationalized health program while reducing taxes by $6,000,000,000.

Clear?

No?  Then let us try another example without naughts.

Governor John Gilligan praises state taxes which again this year produced ninety five million dollars more than we need.  He proposes to remedy this embarrassment by putting aside thirty nine million dollars for an expected short fall in state income next year and spending the remainder for extra goodies.

One wonders if Kennedy ever heard of fiscal responsibility, or if Gilligan has some psychological block to giving tax payers a rebate.

At the national level we need to cut spending or increase taxes to balance the budget - so our politicians do the exact opposite.

At the state level we can afford some tax relief so our legislators increase spending to remove the imbalance.

Williams' Law strikes again!

Kennedy is not alone in proposing a double-barreled blast at inflation through a combination of massive spending and higher debt.

Backing him are Senator Hubert H. Humphrey (D.-Minn), Senator Walter F. Mondale (D.-Minn), House Speaker Carl Albert (D.-Okla.), and Congressman Wilbur D. Mills (D-Ark.), chairman of the ways and means committee.

They assert we are in the midst of a dark "recession," and nothing but a large dose of pump priming will save us

Yet, all the economists - liberal and conservative - agree that government spending is the MAIN cause of inflation, followed closely by near-monopoly practices of big labor and big business.

Their consensus is that a tax decrease at this time would be like throwing gasoline on a fire in an attempt to put it out!

Our $1,000,000,000,000 a year economy (read that one trillion dollars) is slipping because of the push-pull effect of debt and demand.  We've got too much of both!

We have been brought to our present necessity for readjustment by 40 years of deficit financing, excessive wage demands and easy profit all encouraged and protected by politicians who promised something for nothing.

These old Keynesian techniques are overworked if not discredited.  Our times require the hard discipline of work and thrift to repair the strain of four decades of war and social action.

We will accept the challenge on our terms, or it will be thrust upon us by our world competitors on their terms.

While our legislators in Washington rationalize their spending on the basis of less taxes, our legislators in Columbus are having a field day disposing to too much taxes.

The Ohio grab bag admittedly is enticing.  Among the many suggestions for spending the windfall of tax income are $30 million for local governments and libraries, $10.9 million for vocational education, $5.4 million for transportation subsidies for the mentally retarded, $3.5 million for increased homestead exemptions.  $3.4 million for subsidies to heavily populated school districts, $2.5 million for regional education training centers, $1 million for family practice departments at medical schools, $10.6 million for mass transit grants, $7 million for support payments for the mentally ill, $3.5 million for increased police and firemen's pension credits.  $1.7 million for an Ohio Development Center, and $1 million for detoxification centers.

It's hard to shoot Santa Claus even if the "gifts" show up next month on your own credit card invoice.

The Republican members of the Assembly would ear mark $11 million to $10 million of the surplus for tax relief in the form of higher exemption to the state income tax.  But you and I know this has about as much chance as a snow ball in the hot place.

So its fun and games with the ciphers, but in politics zeros mean trouble for those who pay the bills.

What this country needs most is repeal of Williams' Law

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