Another Tax Day has Come and Gone

I read an article several years ago that stated that Americans spend a total of 300 million man hours to complete their taxes. That is equivalent to all three of the US auto makers producing vehicles for one year. I talked to people from other countries and they said that their income tax systems are worse than ours. I can't even imagine just how complicated their systems are.

As for me, I would prefer moving to a consumption tax. When you consider just how complicated our system, they has to be a better way. I have looked at the "Fair Tax" plan and thought about a consumption tax. To be quite honest, I know that I have to pay for the government, but no matter what system we choose. There must be a change to the spending habits of our local, state and federal governments.

I think that a simplified tax system could be created. When Steve Forbes ran for the White House, he wanted a simplified tax system. I think he was on to something. You could just have a simple flat tax.

Right now, I'm opened to anything that will reduce the amount of time we spend on taxes and wonder in we got the right answer when we sign our forms.

Spend or Save?

This is a question that is facing a lot of people including the President. Should we begin to spend money in order to stimulate the economy in hopes of improving things? Or, do we need to save our money in the event the economy continues its downward trend?

I can say this. With the confidence level of the CEOs extremely low and their predictions that the GDP will decline by 1.9% and more layoffs will occur within the next 6 months, I would say that the answer has already been made. Take a look at it. If people are afraid that they will be laid off, will they honestly consider buying a computer or a big screen television? I don't think so. I don't have a degree from a prestigious business school, but I can tell you that 99% of the people I have talked to will not be spending their tax refund checks on frivolous toys. For example, my brother said that he was using his tax refund to pay off some more of his debt. I think my brother is doing the right thing with his check. Yes, he could have bought something with it; however, he decided that being debt-free was more important.

On the other hand, he could have purchased something and saved a person's job. I am being idealistic. The money wouldn't save a job, but it would be used to pay a bonus or package for some executive in the company. Until we get to a point where confidence increases for both businesses and consumers, Americans will continue to save money. I have a refund check on its way to me and I will be saving it until I find a job.

With more and more Americans out of work, spending will continue to drop and people will save more and more of their money. So, it doesn't matter how money the government pumps into the economy. Until Americans have jobs, we will not be spending. In a recent article, I read that food purchases constitute 49% of Wal-Mart's sales. People are saving money. The days of unbridled consumerism are over.

Have you noticed that gas prices are increasing? So much for spending on luxury items.

Finger Pointing at AIG

I was just reading a series of articles about AIG and its former CEO and largest individual stockholder, Maurice "Hank" Greenberg, who is the creator of the AIG investment unit that triggered the insurance company's meltdown.

In a testimony in front of a congressional panel, he claimed that he was a victim and that he left the company in a solid and profitable condition. Those still at AIG say that Greenberg knew about all of this and was there when the CDS, Credit Default Swaps, were being sold at a fast and furious pace.

To me, I don't care who is to blame regarding all of this, but something needs to happen. I am a capitalist and believe in fair and open markets. However, it seems to me that every time we allow an industry to regulate itself, the industry begins to conduct business with no accountability or responsibility for its actions. Don't get me wrong. I prefer small government and I believe that industries should regulate themselves whenever possible. It just seems like they can't for whatever reason. This situation and the subsequent downturn in the economy is yet another good example of deregulation gone awry.

I miss the days of conservative investments made by solid companies. To me, all of these different investment instruments seem like a big Ponzi scheme to make money for a few. If something happens everyone who can afford it can run for cover. Families like mine and yours get the raw deal and we have to bailout the companies for mistakes made by a few people who don't care about others.

I was watching an old "I Love Lucy" episode this morning with Tennessee Ernie Ford. He played Lucy's cousin. In order to get rid of him, Ricky and Lucy pretend to be broke. Well, cousin Ernie comes to the rescue and gets food and takes up a collection. He presents the money and food to them and tells them that people are good and kind. People come to the aid of one another and do not try to profit from hard times.

There is a lesson for us all. Thanks, cousin Ernie! I hope we can learn from your words.

More Money to the Banks!

I was reading an AP article, "Treasury secretary says market won't solve problem", and learned that there is $135 billion dollars in bailout money left and that more money may need to be provided to the banks.

When is this going to stop? I am all for working out a plan to save the economy especially if it means that I will get a job. (Yes, I am still unemployed. In April, I will be on my fourth month of being unemployed.) However, I do not want to see us building up more and more debt.

To be quite honest, I do not believe the analysts or the treasury secretary has a clue on how to save the economy. Don't look at me for a solution. I just enjoy poking holes in other people's plans. However, something has to give. Companies are still scared to hire people. I have heard from several people the same story. They have interviewed and are just waiting for the company to move forward on hiring. They won't, because they are scared to hire people with the economy the way it is.

I applied for a job in early January with a company looking for a program manager to manage their vendor channels. That job matched my skills perfectly. I contacted the HR department and finally got an answer. The job is indefinite hold. The whole country is on indefinite hold.

Bonuses are One Thing; Jets are Another

A friend of mine, Bruce, posted this on his Facebook wall and I had to go read the article. The AIG bonuses are a little galling to me. Most of the executives have agreed to return them. Good for them. However, buying corporate jets and renovating the hanger to make them more luxurious is another. I find it sickening.

According ABC News, "embattled bank JPMorgan Chase, the recipient of $25 billion in TARP funds, is going ahead with a $138 million plan to buy two new luxury corporate jets and build 'the premier corporate aircraft hangar on the eastern seaboard" to house them.'"

I guess none of this surprises me anymore. Executives believe they are entitled to these toys for their private use. The President's speech weeks ago, he talked about one executive who gave his bonus to his employees. Why can't corporate executives do things like that? That would inspire their employees to work harder and build morale. Instead, corporate executives "enjoy" laying people off and keeping their perks and toys at the expense of those who do the real work of the company on a daily basis.

Sad State of Affairs: Jobless to Topless

I was reading an article on the Associated Press web page about more women become strippers or going into the adult entertainment business. Click here for the full article.

This is a very sad state of affairs for our nation. According to the article more women with college degrees who were laid off from white-collar jobs are becoming strippers or sending applications to adult magazines like Hustler.

Instead of finding legitimate work of any kind, these women want more money and are willing to sell themselves for cash. If you ask anyone in the strip clubs or adult entertainment industry about exploitation, they will ask you the same question back, "Who is exploiting whom?"

Take a look at it this way. A guy goes to a strip club with $400 in his pocket and after drinking and dances, he leaves with no money in his pocket. The stripper makes a small amount of the money and the rest goes to the club. Like the old adage goes, "the house always wins."

The biggest problem I see with our nation is that we have not learned our lessons over over the past months. We still remain greedy and we want the money to continue to roll in with little or no effort. Being lazy and greedy makes a dangerous combination. It speaks volumes about our culture and our values.

I am truly saddened.

A Good Thing: The 9-12 Project

Most of the time I am fairly critical about things, but today is a little different. While I was surfing the 'net, I ran across a very interesting project that I think would be great for a lot of people. It is called the "9-12 Project". This project was started by Glenn Beck, noted radio talk show host. My wife and I listen to him and watch his program as well.

Back to the project, the purpose of the project is to remind ourselves of how we felt after 9/11. Families and friends came together to support one another. As we watched 9/11 and the aftermath, we came together as a nation to support efforts to help families affected that day. I remember children collecting money for families and for all of the people who were helping. I saw the best of America during that week. People found a common focus and goal.

Looking in history, America has always come to the aid of other. After WWII, America came to the aid of its allies and enemies by enacting the European Recovery Program or what came to be called the Marshall Plan. It was designed to get Europe back on its feet. It helped all of our allies as well as the Germans and Italians. It showed what can be done when nations come together in peace and with a common goal in mind.

I support the "9-12 Project" and what it means. If we are to survive the economic upheaval that we are facing, we need to come together as a nation and as a global community to help one another.