Harris Sherline: A Tax By Any Other Name Is Still a Tax

Excessive taxation is dragging down the economy and tightening the government's grip on Americans

By | Published on 10.10.2009

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A tax by any other name is still a tax. Whether it’s called a tax, an assessment, a levy, a fee or a mandate doesn’t change the result. The outcome is always the same: less money in the pockets of taxpayers, and more money in the hands of government. You can put lipstick on a pig, but it’s still a pig.

Harris Sherline
Harris Sherline

In an amazing display of chutzpah, President Barack Obama argued with ABC’s George Stephanopoulos in a Sept. 20 interview that the cost of his health-care proposal will not break his promise that no one whose income is less than $250,000 a year will have their taxes increased. Unfortunately, like so many of his promises, this one also is subject to interpretation.

Here are some of the comments taken from the transcript of the interview:

Stephanopoulos: Probably the most definite promise you made in the campaign is that no one in the middle class would get a tax increase on your watch. ... Yet this week, Sen. (Jay) Rockefeller and several other Democrats say that this bill by Sen. (Max) Baucus is a big middle-class tax increase. ... Do you agree, and does that mean you can’t sign it?

Obama: Well, I don’t agree. I think that what you were referring to — and I haven’t looked at the quotes — but I think that they were concerned about whether or not this was actually affordable. If you’re saying to people, you’ve got to get health insurance, but they can’t actually afford it and they have to pay a penalty if they don’t get it, then that’s a pretty big burden on middle-class families. That’s a concern I share — making sure that this is affordable.

Stephanopoulos: You were against the individual mandate ...

Obama: Yes.

Stephanopoulos: ... during the campaign. Under this mandate, the government is forcing people to spend money, fining you if you don’t. ... How is that not a tax?

Obama: For us to say that you’ve got to take a responsibility to get health insurance is absolutely not a tax increase ... but, George, you — you can’t just make up that language and decide that that’s called a tax increase. ... George, the fact that you looked up Merriam’s Dictionary, the definition of a tax increase, indicates to me that you’re stretching a little bit right now. Otherwise, you wouldn’t have gone to the dictionary to check the definition ...

Stephanopoulos: I want to check for myself. But your critics say it is a tax increase.

Obama: My critics say everything is a tax increase. My critics say that I’m taking over every sector of the economy. You know that. ... Look, we can have a legitimate debate about whether or not we’re going to have an individual mandate or not, but ...

Stephanopoulos: But you reject that it’s a tax increase?

Obama: I absolutely reject that notion.

A veritable barrage of taxes in a variety of forms is rapidly dragging the U.S. economy and the nation’s citizenry deeper into the growing morass of government control. Federal taxation is increasing so fast that it’s literally impossible to keep track of it. In addition, the actions of the federal government are being mirrored by most of the 50 states, California perhaps being the worst. Wherever that occurs, the economy declines and unemployment numbers rise.

However, the problems of excessive taxation involve something that may be more important than just the extent to which Americans are taxed — as damaging as that may be — and that is government intrusion into our daily lives.

Taxation is always accompanied by a plethora of agencies that are charged with the responsibility of making sure no one is able to avoid paying their “fair share.” The biggest and perhaps most feared is the Internal Revenue Service, which has almost unlimited power to interpret the tax code and collect taxes.

However, the most insidious form of taxation is government mandates, which require that states, counties and cities, individuals and businesses provide specific services or meet certain standards for various activities without providing the funds to pay for them. In a way, it’s another form of taxation without representation.

At some point, the sheer extent of taxation and the bureaucratic intrusion that invariably accompanies it is bound to impede the U.S. economy beyond the nation’s historical ability to provide a lifestyle that has been the envy of the world.

Be careful what you wish for.

— Harris R. Sherline is a retired CPA and former chairman and CEO of Santa Ynez Valley Hospital who has lived in Santa Barbara County for more than 30 years. He stays active writing opinion columns and his blog, Opinionfest.com.

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» on 10.11.09 @ 05:22 AM

Harris Sherline writes opinion articles that are so ideological and lacking in knowledge that one can only describe him as a divisive figure.  Taxes provide the culture and structure that allow a society to function - think roads, defense, police, fire, education, and a thousand more services that produce a productive and safe environment for our citizens. 

So Mr Sherline, how much does it cost you and me for the 45 million uninsured Americans to use the emergency room for their primary care?  How much does it cost our fellow citizens (in money, worry, poor health, etc.) and our society in lost productivity and family stability?  Do you understand that a society functions best when everyone understands that their well-being depends on the health of the society? 

As one of the citizens of the United States of America I invite you to join us in our efforts to create a better society for all Americans.

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» on 10.11.09 @ 06:40 AM

NO TAXES - LIBERTARIAN
LIBERTY - LIBERTARIAN
RIGHTS - LIBERTARIAN

Read all about these:
Current Issues
Crime and Violence
Environment
Family Budget
Foreign Policy
Freedom of Speech
Gun Laws
Healthcare
Immigration
Internet
Poverty and Welfare
Privacy
Social Security
Taxes

See - http://www.lp.org/

Jerry McGovern

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» on 10.11.09 @ 07:28 AM

Most people want services from government. Services such as schools, after school programs, fire fighters, road builders, city owned water and power like in Los Angeles. To pay for those services the government must raise revenue. That is usually through taxes.

I don’t think most of us want a tax-free world that Harris Sherline envisions.

One more thing…progressive income taxes are the best type of tax because those in a better position to pay are asked to pay a higher percentage. Fees, I suggest, are not so good, because everyone pays the same percentage. I truly believe the wealthy should pay a higher share, simply because they can without hurting themselves.

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» on 10.11.09 @ 07:48 AM

If Mr. Sherline is intellectually honest, then he has to also include Obama’s response to Stephanopoulos that just as requiring motorists to carry auto insurance is not a tax, so too, requiring people to carry health insurance is not a tax.

Republicans are all about PERSONAL responsibility.  So if people are irresponsible and don’t carry health insurance, when they get free care in emergency rooms, is that what Sherline wants? Sounds socialist to me. Is that what Sherline advocates, that we all pay for others who are too irresponsible to buy insurance for their families?

Sherline must either respond to Obama’s contention or concede, but not callously leave it out in his reporting of this conversation.

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» on 10.11.09 @ 11:07 AM

A Progressive tax system is the only way to provide services and promote the welfare of the American people.  Without investment (through taxation) in our infrastructure and needed services (police, fire, education, roads and bridges, etc.) our society would collapse. 
As soon as President Obama eliminates those outrageous Bush tax cuts (done behind closed doors without the American people’s consent) for the wealthiest Americans who are most able to afford them, a health care system with a Public Option will be paid for! The country needs that to happen soon.
 
Without a progressive INVESTMENT (through taxes) system our entire country would fall apart. I agree with you on “insurance mandates”; they are awful.  What we need is a Universal Single Payer Health Care System which would save this country BILLIONS of dollars each year and allow every American access to quality, affordable health care. This is what the majority of Americans truly want—an American Plan for the American People!

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» on 10.11.09 @ 11:54 AM

Why do people, when the idea of excessive taxation is discussed, always feel compelled to bring up the need for public services (roads, defense, police, fire, clean water, education)? Nobody debates the role of government in providing for public safety and infrastructure. Nobody says taxes should be abolished. What is debatable is when it goes beyond that, to promising or handing out Christmas presents in order to get votes and stay in office. Earmarks, pork projects, welfare, nanny programs… THAT is what is debatable.

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» on 10.11.09 @ 12:10 PM

psssst… the wealthy already do pay a higher share. In fact, the top one percent of income earners pay 40% of the taxes, while the lower 40% pay none. At a certain point, the “wealthy” can no longer shoulder the burden, and obviously will have no incentive to, because really, it is the middle class that is necessary for doing that (who you wish to cripple even further with higher taxes). Most of the wealthy would not be wealthy at all if they could not sell products and services to the middle class.  Fees, by the way, are not paid by everyone, only the user of the services to which the fee is applied, so everyone does NOT pay the same.

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» on 10.11.09 @ 03:49 PM

Hey Bob you are right the top 1% do pay 40% of all taxes but they earn more than 50% of all income. Also, the lower 40% do pay taxes in the form of social security, FICA, gas and sales tax. The real facts are that the top 1% are paying the lowest tax rate today than in the past 70 years. Under Reagan, Eisenhower, Bush Sr., Nixon and Ford their rates were much higher. If you add in the tax loopholes they enjoy it even gets better for the top 1%. Just ask Bill Gates and Warren Buffet.

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» on 10.12.09 @ 08:21 AM

The tax and spend your money liberals are always asking for more of our hard earned money. The liberals dont care if we pay 50% of our income to bloated over staffed over paid government workers or hardly working.

our servants have too many holidays, sick days vac days, and in some cases 4 months off..rediculous..oh ya pensions only a king could dream about..

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» on 10.12.09 @ 02:25 PM

Those who claim that the rich pay too much in taxes could be better informed by reading today’s Hiltzik column in the LA Times.  The truth might set you free:

http://www.latimes.com/business/la-fi-hiltzik12-2009oct12,0,4419598.column

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» on 10.18.09 @ 02:00 PM

Bush wasted more than a trillions dollars on useless wars in Iraq and Afghanistan while lowering taxes.  That is the cause of our economic troubles.

Obama is only doing what’s necessary: pay back the debts that Bush ran up and trying to get the economy working again.  I hope he’ll manage to do that before the next Republican president goes on a wasteful spending spree again.

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