California 10% Increase Tax Withholding is Borrowing from Tomorrow

It is no news that California government is taking a chunk of our paychecks now only to pay us back later, hopefully not with IOUs. Besides the general emotional response, beyond the effect it may have on our budgets, this is a general trend we can see of our society.

We keep on borrowing from tomorrow.
From individuals to local government to the national level.

Correspondingly…
From moving debt from one credit line to the next.
To taking tax revenue that really does not really exist.
To taking on great deal of national debt to “stimulate” economy. (Social Security aside…)

And most cases, if it is not that we don’t try to pay it back, it is that we have spent/run out of resources to pay it back. But in the end, the debt will always catch up and bite us in the ass. Somehow, eventually.

Borrowing from time, borrowing from tomorrow will never work. It will never solve anything.

When will we learn?

Originally posted 2009-11-12 22:29:53. Republished by Blog Post Promoter