Rev. Karin Conover-Lewis PO Box 52 Trinidad, CO 81082-0052 (719)846-8539 Smoke and Mirrors

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Rev. Karin Conover-Lewis PO Box 52 Trinidad, CO 81082-0052 (719)846-8539 ---------------------------------------------------------------------- Smoke and Mirrors and Taxes in Arrears by KLC Lewis The American economy is in the dumpster. You don't have to be a Rhodes Scholar to recognise this as a fact - it actually helps a bit if you are not one. The working People of this country feel firsthand the impact of a recessionary economy, as their livelihoods and security are threatened with extinction. They know, from experience, that which is nothing more than charts, figures and statistics to the politicians and bureaucrats who hold America's future in their hands. With each passing day, more workers become ex-workers as American businesses opt to close their U.S. factories and offices and relocate them in Mexico, Singapore, or other countries. As these companies close shop here, those who were employed by them become part of the nation's unemployed and unemployable, joining the hordes of underedu- cated youths who are in the same boat. These companies really can't be blamed for taking this action - they must stay competitive in order to survive, and the lower operating costs, including taxes, in those foreign countries, can be extremely attractive to businesses which must compete in a global market. The so-called North American Free Trade Agreement, rather than creating jobs for Americans, will provide even greater incentives for business- es to pull-up stakes and move to Mexico, putting yet more Americans out of work. The bottom line is operating cost, and manufacturers will go wherever it is cheapest for them to conduct business. The question is not whether or not our nation's economy needs immedi- ate attention, the question lies only in what to do about it. Presi- dent Clinton would have us believe that he can fix the problem by taking more money out of the hands of the taxpaying Citizens, out of the hands of the consumers, and "investing" this money in jobs-train- ing and make-work jobs creation. He claims that to characterise his policy as "tax and spend" is neither fair nor accurate, preferring instead to use the terms "contribute and invest". But isn't this actually the cause of the problem? President Clinton would rather change the words used to describe his programmes, than actually change the substance of those programmes. The average Ameri- can worker now "contributes" over 60% of his or her income in direct and indirect taxes (source: The Universal Almanac, 1993, pub. Andrews and McMeel) in order to support a bloated and wasteful bureaucracy, paying for government porkbarrel programmes, unnecessary government jobs, and golden parachutes for our public "servants". By taxing the People to the point of serfdom, the government ensures that the People must spend more of their time eking out an existence, rather than being able to devote more time to their families, their communities, and their churches. By taking the lion's share of the money earned by the American People, the Federal government creates the very problems which it claims it now wants to solve - by taking even more of our money. President Clinton claims that his tax increases will only effect "the rich", and that his tax increases are largely aimed at corporations and big-business. In truth, every household with an income of $30,000 or more will directly feel the impact of these new taxes. Additional- ly, raising taxes on the companies which manufacture consumable goods will result in higher prices in the stores, as the manufacturers are forced to pass-on their increases in manufacturing costs. This further impacts on the consumers and effects everyone, regardless of their income, by greatly decreasing their buying power. As the companies which remain in the U.S. are forced to become more competitive, and American workers are required to become even more productive, jobs will be lost, not gained. And, if that isn't bad enough, increases in operating costs will prevent businesses from being able to take on new workers and from being able to expand their businesses. Yet we are asked to believe that the Clinton administra- tion's tax and spend policies will stimulate the economy. Not only are we asked to believe, but we are chastised when we call attention to the fallacies upon which the policies are based. The truth is that the excessive level of taxation in this country prevents prosperity by taking money out of the hands out of the consumers - the only place where it is worth anything. Increased taxes result in higher prices and less buying-power, forcing consumers to spend a higher percentage of their incomes for basic subsistence and leaving less money for discretionary spending. Only the consumers can truly stimulate the economy by purchasing goods - resulting in greater demand, requiring increased manufacturing, and creating real jobs. In order to accomplish this, government must cut its spending and drastically lower taxes on all levels, putting more money back into the hands of the American People who earned it. With more discretion- ary income available to them, demands for durable goods, housing, automobiles and other products will skyrocket, leaving widespread prosperity in its wake. Savings will grow, as people have money to invest, and, as a bonus, medical insurance will once again be attain- able by most workers - achieving, in one fell swoop, most of the goals of the Citizens of this country. President Clinton has quite a career ahead of him, but it's not in government -- with his smoke-and-mirrors act, he would make a jim- dandy magician. Unfortunately, he won't be able to pull a sound econo- my out of his hat, no matter how hard he tries.


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