Payroll Tax Deduction Extension - Good or Bad?
Channel: The Philosophical Angle
Date: 2012-01-16

The Payroll Tax Cut Extension (Or Any Other Tax Cut For That Matter)

At the Philosophical Angle, we dare say that most people out there on a salary are happy for a payroll tax deduction.  After all, it will allow for less deductions from our payroll check thereby allowing for an increase in take-home pay.

Of course, we hear from the politician on the news that a payroll tax deduction means that the Federal Government will take in less into the Social Security Fund, and consequently, the fund will begin to deplete precipitously.
But, you say, so what!  The Government takes in well over a Trillion dollars per year.  Certainly they have enough money to cover it!

Well, they do; but it is difficult for the politician to re-allocate; they just want to spend more.  So cutting taxes helps them to not increase their rate of spending.
Is this good?  Let's explore:

In the free market process, information is exchanged, and priorities are adjusted (which is manifested in the price) allowing the Rewards to be equalized which will permit an exchange to be consummated.  

That is, we make sacrifices to obtain a reward in everything we do.  We expend our Time, our Effort, and sometimes our material, while using our knowledge amidst a miasma of Risk, to gain a reward.

Hence,  Our Sacrifice = Our Reward

What happens if somebody like a government comes along and takes some of that reward away?  You have less Reward to give yourself and use as you see fit.  So, a tax cut is good for the individual.  But what about the economy as a whole? 

Does governmental taxation debilitate an economy? 

The answer is emphatically Yes!  Here's why:

The underlying cause of government inefficiency in its programs is the mismanagement of the interplay between the free will and the information and knowledge which our priorities are of prime importance.  In the case of the public sector and in the governmentally owned corporations and programs throughout the world, the proper flow of the information, knowledge, and the priorities are interdicted by politics.

In all of life, information has a natural flow, and it flows to the dictum of cooperative relevancy.  That is, information is directed by the consciousness to the appropriate area within a life embodied organization where the information has pertinence.  In the case of an animal's body, the cell retains that information and knowledge that it needs to function and adhere to its purpose.  Any information extraneous to its singular purposes is passed on to appropriate places outside of it.  If it is information that is vital or consequential to the rest of the body, it will be passed to the areas affected or ultimately to the brain when further or general considerations are needed.
All life, that requires cooperation, will structure a system of informational, cooperative relevancy.

Consequently, life's group entities have constructed information systems that distribute information according to this principle.  The information is distributed to the appropriate place in the group where it will be used to the greatest and most efficient advantage.

This informational dissemination system must be present in any corporate situation whether it is a single biological being or a societal confluence of many entities gathering together to attain a purpose that will promote its survival and take it up, away from misery.

The governmentally owned corporation or program, unfortunately, cannot set up efficient information flows according to this cooperative relevance.

The governmental corporation or program does not operate efficiently because the information is interrupted by politicos.  Their purposes may be wide and varied as dictated by their various constituents ... in other words, by the special interest groups.

The reason is that a nationally owned governmental program is readily saddled with purposes that are politically expedient and outside the purpose of the private economic corporation or other life entity.
The proprietary information of a private company would flow generally, from its work groups upward toward management and then back down in an informational symbiosis.  

The public governmental program would have additional directives coming from non-self promoting corporate issues coming from the agendas of the politicians beholden to special interest groups overriding and interdicting that which evolves naturally within the economic animal.  

The politicians would have dual interests: on the public governmental program, they would have not only the interests of the program for all of the U.S. citizens, but also as a member of the government and as a representative of their constituents, they would have their concentrated, singular, political interests in mind of the special interest groups.  This will present often a conflict.

In conclusion: The government detracts by taxation when it uses its funds for governmental corporations, programs, entitlements, and other inefficiencies.