Harris Sherline: Taxation with Representation

Simply put, our taxes go up because the people we elected to represent us keep voting to increase them

By | Published on 12.19.2009

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The historic American cry, “No taxation without representation,” has morphed over the years into a new reality: “Taxation with representation,” which leaves most of us to wonder what happened to the representatives who are charged with the duty of protecting the nation’s citizens from an overzealous government.

Harris Sherline
Harris Sherline

The number of taxes and the many jurisdictions that levy them is breathtaking. It’s not just the big-ticket items that are strangling taxpayers, but the sheer number and forms of taxation, including the dozens of small taxes and fees that are imposed on such services as the telephone and utilities. The abysmal economic ignorance of political leaders who vote to tax their constituents without any understanding of the impact taxes have on the economy and employment is stunning. They just don’t get it.

They seem to have the mistaken notion that money the government uses to pay for programs or provide benefits to individuals and various groups is produced by the government when, in fact, it comes from taxes. The more taxes are increased, the less there is for taxpayers to spend or invest.

Pardon my skepticism, but — try as I might — I can’t see any reason why it’s always necessary to raise taxes and fees whenever the government is faced with a budget shortfall. Given the size of budgets these days, especially at the state and county levels, it’s hard to understand why legislators invariably look for ways to increase taxes and generally resist cutting costs until they are forced to do so.

With all levels of government competing for new sources of revenue, it seems obvious that we are rapidly running out of options. Yet our politicians insist on continuing to paper over the deficits, which seem to get bigger with each fiscal cycle.

John Stossel pointed out in a Nov. 18 column, “Worse Than Taxes,” that New York now has a $3 billion deficit, but that the state would have a $14 billion surplus today if the growth of government had been limited to the rate of increase in population and inflation.

Stossel also notes: “Hidden taxes are more pernicious because they disguise what we pay for government,” and that, “Politicians are worse than thieves. It’s not that taxes don’t anger me. They do. But I’m more angry about the arrogance of the ruling class.”

California is notorious for its out-of-control spending and deficits, and the Sacramento Bee reported (Nov. 19) that the state will require $20.7 billion to balance its budget over the next 19 months.

I have always been baffled by the fact that so many otherwise seemingly intelligent, responsible citizens, who probably generally use good judgment in the management of their own affairs, seem to lose all sense of proportion when they get their hands on government funds. It almost seems as if it somehow becomes some sort of Monopoly play money.

The health-care bill working its way through Congress further illustrates the zeal of legislators to impose more taxes on Americans.

The Heritage Foundation provides a list of 29 new taxes included in the plan: An income surtax on taxpayers earning more than $500,000 a year, an excise tax on high-cost “Cadillac” health-insurance plans, an excise tax on certain medical devices, a limit on itemized deductions for certain taxpayers, a windfall profits tax on health insurance companies, a value-added tax (VAT) and an increase in the Medicare portion of the payroll tax, among others.

The Heritage Foundation analysis further notes, “The full list of taxes proposed to pay for health-care reform is provided because taxes currently left out of the Senate or House bills could reappear at any point. For instance, the tax on cosmetic surgery listed above (sometimes called the “Botox tax”) was written off long ago as a laughable way to pay for health-care reform. Nevertheless, it somehow found its way into the current version of the Senate bill. ... As the legislative process continues and Congress’ desperation to pass a bill increases, it could propose even more tax hikes to pay for its massive expansion of government size and power.”

This appalling example of the excess of legislative zeal to impose taxes further illustrates that the reason our taxes have been increasing exponentially over the years is because the people who are elected to represent us keep voting for them, which amounts to “taxation with representation.”

— 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 12.20.09 @ 11:53 AM

The answer is simple Harris. One wonders why the supposedly “smartest” man ever elected president can’t figure that answer out is not all that hard to understand. Obama was raised politically in an anti capitalist environment. Profit motives were evil. Open free markets were for criminals and thieves. Everything this man was taught about his country was negative. From racial relationships to economics to foreign policy America was wrong. There was a better way, the European socialist way. Obama was entrenched and ensconced in a small narrow mined world of national self loathing that is so strong among left wing adherents that they absolutely cannot see any other way but their own.

Economically they don’t get it. To them economics is nothing more than moving a fixed amount of wealth around. Wealth only increases with population (hence their ardent support of illegal immigration). These people have absolutely no idea how to make wealth and they scorn those that do, all the while benefitting from the work of others so it’s no surprise they see a system (socialism) that takes from doers and gives to the idle as the best way, it’s all they know. Ok, they aren’t THAT stupid and blind. Yes they see others taking enormous risks and they see the enormous failures that come with those risks. They, having been coddled most of their lives, want no part of that scary stuff. They live in the kind of fear a child does when threatened with having no parents to support them. They are not fully adult enough to see that they can do it on their own without help, like many of us have had to do. So for them capitalism and free markets are places that are not safe. They are right you know. But they are also the places that have created the enormous abundance that they enjoy today.

The moral of the story here is we can do it and do it without the help of government. We did it before and succeeded beyond the wildest imagination of our founding fathers. So inspirational was this achievement that even the communist Chinese have taken that lesson to heart and look at what they have accomplished as a result. Stop hating your self and your country. Stop fearing the failure and get back to work America. We can do it and we will do it and the only thing we ask is that the fearful and timid step out of the way. That’s you liberals and your big enormous nanny government.

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» on 12.20.09 @ 01:14 PM

Actually, tax rates have not “increased exponentially” as Sherline claims. See graph 1 at http://www.truthandpolitics.org/fed-tax-burden-cbo.php.
And, has his prescription of lowering taxes worked in the past to stimulate investment and job creation? No, as most recently witnessed by the Bush administration tax cuts. He claims the politicians don’t get it. Well, some certainly don’t, like the supply siders, and, apparently, Mr. Sherline.
The primary issue is not the amount of taxes we pay; it’s what we’re getting for that money. I’d feel a lot better about my “tax burden” if so much of it was not going to large agri-businesses for not growing healthy crops and hundreds (thousands?) of other boondoggles.

As for AN50’s comment about the free market being so successful “without the help of government,” consider the national highway system, the publicly subsidized national communications system (telephone lines, the internet), a national postal system, publicly funded scientific research, public schools, and on and on. There has always been, and always will be, a government role in the economy and thank goodness for it. Again, the issue is not whether there’s a role for government to play (federal, state and local) but what’s the appropriate role, at what level of funding, etc.

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» on 12.20.09 @ 01:50 PM

What rubbish from Harris but mostly from AN50 the a**hole troll who remains anonymous.

Next time you enjoy roads, sewers, airports, police, fire, weather prediction, clean air, clean water, traffic signals and every other thing that helps our civilization remain so opulent, comfortable, organized and functioning, you can thank taxes.

 

The comment that we have ever done without taxes or “government” is not only absurd but silly. Our founding fathers created a government which imposed taxes from the outset of our wonderful country.

 


AN50 you take advantage of all the benefits of a government that provides these wonderful things for you, yet you are evidently not smart enough to see that you both need and enjoy these things.

 


Understand that you or I have never done ANYTHING that was not in some way dependent upon the existence of our government for its success.

 


If you have a childish view that you have somehow done things “on your own” without then “help” of government that is simply not true.

 


Finally AN50 you have no right to EVER tell me “I don’t get it” or “I am timid” or “fearful” or “I hate my country” or “myself” merely because I happen to disagree with your myopic view of the world.

 

I will match my patriotism and military service against yours any time.

 

I am clearly far less fearful than you because I use my name when I post.

 

Either come out of the closet and have an adult conversation using your actual name or STFU.

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» on 12.20.09 @ 05:41 PM

The simple concept that gleeful taxpayers like Rob never seem to be able to grasp is that less taxes = more revenue. More taxes = less revenue. Figure it out.

And feel free to give more than required to the wasteful government anytime Rob, how much is enough? If 100% of your income is required to pay for all the “wonderful” services the government provides, is that enough?

The reason we are fearful to post names on the conservative side is that you socialists are all too willing to retaliate personally in the usual “attack the messenger” format (take Sarah Palin for example).  I have seen it in my place of employment, Yes conservatives are discriminated against. I had to quit my job I was forced out. Why are you so eager to know names? What’s it to ya?

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» on 12.20.09 @ 05:43 PM

Rob obviously works for the government, a beneficiary of taxpayers like us…

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» on 12.20.09 @ 09:11 PM

Rob is absolutely right.  Harris sort of forgot to mention several of the main reasons state spending has been rising:

Reagan’s revenue sharing was INTENDED to have funds spent previously by the Feds, to be spent by the states instead.  Of course, the Feds sent the states the mandates, but not all the tax revenues to fund them.

In California and some other states, the Feds failure to reform immigration meant increased unfunded mandates on the states without concomitant revenues from the Feds.

The mostly Republican sponsored anti-crime legislation, such as 3 strikes, plus wars on crime for stuff like marijuana has filled our prisons at unprecedented rates.  And it costs a bit more to house a prisoner than to put a kid through Harvard, mostly because Harvard takes only 4 years and then you’re out.

The mostly Republican sponsored bankruptcy bill favoring creditors has made it harder to get out of debt and therefore made more people dependent on public assistance.

As to the people extolling free enterprise, perhaps they can explain how well it worked to lower our energy costs (remember Enron) or how swell deregulation of airlines has improved service and reduced costs.  And how well has free enterprise done in lowering health care costs or in assuring a solid banking system or a vibrant domestic car industry. 

Completely free enterprise leads to abuses such as child labor.  It’s a paradox but if we want competition, we need govt. oversight. 

Harris, you are smarter and know better than to pander to statistics without looking at underlying causes. Please talk up to us, not down.

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» on 12.20.09 @ 10:03 PM

Unbelievable.  Harris Sherline gets rich by charging ridiculously exorbitant prices for things like asprin… $2 an aspirin in most hospitals… and then bellyaches about government taxation.  When my dad was sick and died there were $10’s of thousands of phony Cottage hospital charges on his insurance… my mom, and auditor who sat with him the whole time, forced Cottage to withdraw the charges… Harris was in the top brass at Cottage at that time.  The Cottage admins told my mom, `what do you care, your insurance will cover it’.

So now Harris is living a rich life because he ripped off Cottage Hospital patients, and he has the gall to criticize the government rippers off.  What a joke.

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» on 12.21.09 @ 09:17 AM

I think we are overtaxed 40%, and big government is destroying this country. Cut 2 million gov jobs, and sub- contract our all services to the productive private sector.

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» on 12.22.09 @ 07:53 AM

Yup, we can contract out like we do our military… $400,000/year for a private-sector car mechanic in Iraq or Afghanistan, $70,000/year for a corporal who does a better job, according to my nephew who’s in country.  $100,000 for a toilet seat.  Government bureaucrats are stupid small time crooks, but the private sector like Harris Sherline are smart $billion crooks.

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» on 12.22.09 @ 11:05 AM

Rob is exactly the kind of happy-to-pay-taxes useful guy the government is depending on for the socialist takeover. Yes rob it is wonderful that the government provides public safety and infrastructure, which is their role. Nobody denies the need for that. The problem is that it doesn’t stop there, nor does the taxation. Yes we need government, but it has to be controlled and limited. The question is government at what cost to the taxpayer and to liberty and freedom? Where do we draw the line? There is a large range between no government and no taxes, and HUGE government and taking everything you earn to distribute as it sees fit, which really is socialism. 100% taxation and 100% control of our lives. let’s stop at something like 20% government and 20% control of our lives. It is approaching 50% and growing.

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» on 12.22.09 @ 08:34 PM

Contract out all Government services and save Billions..

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» on 12.23.09 @ 04:42 PM

Robby I don’t know what to say about you. You throw your service in the military out there like it’s supposed to erase the road you took afterwards. You became a lawyer, a liberal and then a spy for the DNC. And you get angry because the opposition won’t rat itself out to the new Obama Gestapo? Really Rob, is it brave to put your family name out there for the world to see on the world wide sewer or just foolish? I’ll let the consequences of your behavior speak for its self. I’ve been burned by such naïve nobility in the past; I won’t put my family through that again, particularly when operating around lawyers and DNC spy operatives like you.

As for the role of government, I never denied there was one or that government wasn’t necessary or useful. What I implied, that Robby still doesn’t get (and he’s a lawyer at that!) is that government works best when the private sector does. When Eisenhower passed the interstate and defense highway act in the late fifties our country’s economy was robust, it was a net producer economy expanding and creating wealth. We still had a net surplus in trade. Ergo, commie nit wits, we could afford a new highway system because our economy produced the extra revenue to fund it. Compare that to our economy today. We have racked up to 50 trillion dollars in debt since Eisenhower. We run a net trade deficit and our economy is no longer expanding because it is a consumer economy that spends more than it earns.

Do you guys understand creating wealth? Governments are very poor at doing so and socialist governments are the worst. Why the hell do you commie worshipping idiots think communist China decided to set up free enterprise zones in its country? They do it to embarrass their commie government? They do it because they knew capitalism would fail and then they could say “see we told you so”? No you pathetic European socialist worshippers, they did it because they realized what the Europeans so enveloped in their disdain for and envy of American capitalism, could not see, it works and works very well especially when government keeps its hands off. My God you guys are still operating under the lunatic notion planted by old Soviet spies 40 years ago that capitalism is evil and socialism is good. Even your sugar daddy the great George “rape your currency for my personal gain” Soros isn’t that stupid and blind.

Obama is breaking every promise he made to you. Why? Because now he has to run the whole country not just south Chicago. There is way more to the game than his uber liberal mentors ever let on to him. He is discovering that, yes, you have to make money to spend it and the treasury printing press doesn’t count. But do you liberals cut him slack? No, you berate him and start the same vitriol and hatred you used to reserve for Bush. My God, your intellectual narcissism is at an all time high. But let me tell you something Robby the lawyer and DNC operative spy, you ain’t that smart buster and your past military service doesn’t cover the sin of your current occupation. So save all the phony indignation for someone who doesn’t know you (which because of your foolish publishing of your family’s name would be hard to find anywhere in the world). So cough up the wealth for your feel good crap, put your money where your mouth is, Rob, spy, Gestapo member or STFU.

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» on 12.24.09 @ 06:45 PM

OK, folks, I’m sure no one REALLY thinks we need NO taxes; why rise to that bait?  We do need police, fire, roads, etc.  I think AN50’s point is that we do NOT need is a constantly increasing proliferation of taxpayer-funded programs based on the thinking that an extremely well-paid, benefited, and union-protected government can cure all ills at the cost of beggaring the private sector.  I agree.

The failed state of California is a testament, no, a screaming boldfaced headline, to the folly of that idea.

But anyone who reads these posts regularly knows that Egenoff is a diehard tax-and-spend type and presents himself as everyman’s friend and a true believer in government as mommy - this of course allows him, in true 60’s radical lefty form, to see himself as morally superior to those who do not share his beliefs. 

On the other hand, AN50 is much more of the in-yor-face, libertarian, independent, take-responsibility-for-yourself type.  Not sure what AN50 does or did for a living, but I think that Rob Egenolf (only one in the phone book) runs a law firm bearing his name - wonder what he charges for his services and how much of his services are paid for by the government he loves for all of us to fund?  And, of course, by proudly putting his name out there and to his credit, Egenolf is ensuring that you can register your approval, or not, of his politics by buying, or not (as I did long ago), his services - if he’s not the Rob Egenolf of Egenolf LLP, then he has caused that gentleman some financial harm.  I’m sure he believes that we all have the right to make our economic choices based on our political beliefs, you know, like not buying gasoline because one hates oil companies, or not eating at IHOP because they buy their eggs from farmers who keep their chickens in tiny little cages.

Egenolf’s statement “I have never done ANYTHING that was not in some way dependent upon the existence of our government for its success”, is a sad measure of his self-esteem but also a statement that is virtually without meaning since our country exists only by virtue of having a government (you know, strong defense, maintenance of borders, law & order, infrastructure etc.), but not necessarily his view of what the government should be.

And Egenoff should be ashamed of himself for injecting profanities, no matter how cutely and transparently disguised, into the debate.  Name-calling is the refuge of the small, closed mind, a generally failed attempt to minimize the opponent (failed because it really minimizes the name-caller), and no more than an expression of frustration that one can’t win the debate by reasoned means.  Usually comes from the Left - but don’t take my word - read the posts.

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