Thursday, February 19, 2009

Saving Money is Bad for your Wallet

A story out of The Economist notes that saving money is bad for your wallet these days. worth a read IMO. Kind of sad facts that they note.
BORROWERS get bailed out. Run your bank into the ground and the taxpayer will lend it money. Buy a house you cannot afford and the central bank will cut interest rates to ease your burden.

Meanwhile those who have lived within their means and put money aside for the proverbial rainy day, have seen interest rates slashed to 2% in the euro zone, 1% in Britain and virtually nothing in America. No one offers to help them out, even though saving is needed to allow business investment which, in turn, generates growth.
So when you consider where we stand, the way our "system works" (no it doesn't)... you earn money, and pay income tax on it. Then, if you "save" the money you are left with, you pay tax on it AGAIN. Even though you've already paid the taxes on the money you've earned, once you try to "save" it and earn interest, you have to pay again. Of course, once you try to spend the money you've "saved", you can look forward to paying sales tax with what you've saved. And if you just didn't earn any money and didn't save a dime, you'll get extended unemployment benefits, handouts to pay your mortgage and then some.  I'll be honest, part of me is kind of bummed that I've opted to live within my means for so long... I knew I should have bought my 40 acres and worried about how to pay for it later. :(

Troubling.... Maybe I should just go buy my Corvette (local stealer has a jet-stream blue 09 Z06 on the lot for 6-7 months now and I drive past it every day and I WANT IT!.. "only" $80K or so) and assume someone else will pay for it.. why bother saving a few dollars a week for it... it doesn't have to be my "American Dream Car", it could be *MY* American Car. 

On a more serious note, Steve Lonegan will be announcing his Tax Cut Plan later today at a State House News Conference, Conference Room 1, State House Annex, Trenton on Thursday, February 19th, 2009, at 2 pm. I'm hoping to hear of a plan that would reward my "dream" of being able to work hard and save the money needed to buy MY Corvette and not have to pay what income isn't taxed as sales tax or luxury tax or some other non-sense tax.

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