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1) Change tax system? [by David Dunn on June 29, 2008]"The bill extends various requirements for employees to get pension, health, and leave benefits and limits the availability of others, but does not do so enough to reverse the growth of an actuarial deficit that is currently in excess of $27 billion."
There's the problem. Not enough revenue. Yet neither the executive nor legislative branches of government seem to be able to figure out a better tax system. Why not check out our American founders' ideas on taxation? Alexander Hamilton wrote in Federalist Paper 12:
"The ability of a country to pay taxes must always be proportioned, in a great degree, to the quantity of money in circulation, and to the celerity with which it circulates."
That's like a toll tax on the movement of all moneys. Nothing would be excluded. The state sales and income tax could be eliminated. Hamilton's idea had to await the arrival of computers in order to be able to track all monetary transactions.
The rate could start as low as 1% and probably max out at about 5%. There'd be no cap on the top, like Social Security has. Upper caps destroy proportionality. Without proportional taxation there can be no fairness in any tax system.
So, politicians, get our your Excel spreadsheets and start figuring out what you can come up with. Or am I presuming too much?
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According to the June 11th issue of THE KENTUCY GAZETTE, when Gov. Paul Patton authorized a formal structure for labor unions to organize state employees seven years ago, a spokesman for a coalition of state workers, who didn't want the unions, described salaries and benefits for Kentucky's public employees as "best in the nation, second to none."
A U.S. Department of Labor spokesman told THE KENTUCKY GAZETTE that the average annual salaries of state workers in Kentucky were 9.1% higher than the average salaries in the private sector.
It is clear to anyone who studies this matter that Kentucky's state employees receive higher pay and better pensions on average than the rest of us.
Kentuckians rank 46% in average income in the nation. We rank 13th in the percent of our income we pay in taxes. However our state employees rank in the 30's in average salary and at the top in benefits.
Kentucky voters are tired of politicans who care more about salaries and benefits (including pensions and health care) for state employees than for the taxpayers who they force to pay the piper.
We take very good care of our state employees and the retired state employees, but still some want even more. Many do an outstanding job, but their salary and benefits are good enough and much better than those of most of the taxpayers who must pay the bills for state gavernment.
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Dear Legislators:
Thank you for your concern regarding the needs of retirees and their families. With this vote you have assured their ruin by including the very damaging 1.5% fixed annual COLA! It has been stated that this fixed annual COLA brings equality between the other retirement systems and the teachers' system. I would like to point out that the same equality could have been achieved by granting the teachers' system the annual COLA based on inflation retired state employees used to have prior to your retiree gutting action in this bill. It has also been stated that the fixed 1.5% annual COLA is a floor not a ceiling because the legislature can grant a higher annual COLA. We all know that will happen about as often as pigs sprout wings and fly! So again I say thank you for rear-ending me and my family with this stupid fixed 1.5% annual COLA just when our economy is in an extreme upward spiral of inflation. I worked hard for 33.5 years to EARN every cent and benefit of my retirement including an annual COLA based in inflation so my family would have a little better chance to keep pace with inflation. Now you have taken that away and there is nothing I can do except go broke and eventially apply for welfare when we hit bottom. Thank you again for NOT honoring the deal we had in place on December 1, 2003 when I retired. That deal did NOT include this totally stupid fixed 1.5% annual COLA. There is no part of that deal I can change but you have decided to make this change to the deal we had. I wonder what type of "family value" it is that allows you to NOT honor your word by taking away the annual COLA based on inflation which was part of the deal you made with me on December 1, 2003? I know there has to be other methods to save money that do not involve ruining retirees with this insane fixed 1.5% annual COLA just when the IRS has ruled that for the last half of this year is costs at least 15.84% more just to operate a car. Thank you again for damaging me and my family. I hope this comes home to you in spades! Sleep well you poor excuses for human beings, I know I won't be able to because I am wondering how to keep my family fed, clothed, and sheltered! May God forgive you because I'm not sure I can! Shame on every one of you who voted for this retiree sodomizing bill!
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