It is the old proverb of “Killing the Goose that laid the Golden Egg.” Right now in our economy we are finishing up the dinner made from the Goose, it was a great fest, but now our politicians are asking where do we get more Golden Eggs, since we ate the Goose?

State and Federal Government’s only solution for all their run-away spending is, increase the taxes on the Middle Class and pretend they are just taxing the rich. Taxpayers keep pointing out that controlling government pet project spending, is one of the major answers but it always slides down the priority list of ways to shrink government spending.

The Middle Class is told, “you are just paying 25 or 39 per cent of your income and in many European Countries the citizens are paying 70 to 75 per cent in taxes.”

Let’s take a closer look at the actual taxes the Middle Class pays as a percentage of their income.

In California there is a State income tax of 10%, there is a sales tax of almost 10%, and property taxes have increased by hundreds of dollars.

Then, there is state and federal gasoline taxes, phone taxes, utility taxes, new vehicle registration taxes, and on and on. When you add up all these taxes our Middle Class in the USA is paying very close to 70 percent taxes of their income, and in states like California, where they have increased the state income tax, the state sales tax, vehicle registration tax and property taxes it may be closer to 80 percent. Also in California there is tax on tax, sales tax is charged on the Federal gasoline tax. So you are paying tax on tax.

Think about it, California just raised the sales tax to almost 10%, that means the state is getting a net 10% profit on all sales in the state. Many companies would like to do that well, and especially since they state does not have to do anything for that extra 10 percent.

For many politicians the only answer to any problem is to raise taxes and hire more state or federal employees with large benefit packages.

They must be sent the message from the Middle Class that the ax is getting close to the neck of the Golden Goose. Tax the Middle Class out of existence and you wipe out the economy.

The banks are taking the homes from Middle Class Workers, and the Government is taking their income.

What does that leave? It leaves a very large third world country that will not be able to compete with China and India.

File 2-27-10. By Judd McIlvain, Broadcast Journalist.