By Budd Schroeder | Wednesday, February 27th, 2008 at 12:00 pm
Rebates are a real con job. Think of it. They are used in commerce to generate sales by enticing consumers to buy the product with the promise of getting a cash return. If you buy a can of soup or a bar of soap for a buck and a half, but send in the coupon and proof of purchase, the manufacturer will send you a dollar rebate. Big deal!
By the time you send the required coupon and documentation, you have invested more than forty cents in postage and the envelope. So, your actual return is less than sixty cents. If the purchase is for a large item like a computer printer and the rebate is $10, you have already spent an extra eighty-seven cents in sales tax, plus the cost of the postage. OK. That is still a significant savings on the item.
However, when auto manufacturers offer a three thousand dollar rebate, the cost of the sales tax on the original purchase price will exceed $250. This could be avoided if the cost of the car (or the other rebated items) were reduced at the time of sale. Except for the windfall for the tax collector, we have difficulty understanding why the purchaser can’t get the savings immediately and save on the tax. We prefer discounts to rebates.
Now, the government wants to “jump start” the economy by giving income tax rebates. As Conservatives, many believe that the money should not have been taken from us in the first place.
The same holds true for the state property tax rebates. Coincidently, those rebates come just before elections so the politicians can brag about how much money they “gave” us. It also gives us cause to ponder why, if money is available for this generous gesture by our elected officials, the state is so deeply in debt and there is a huge gap in the budget. Do you think it could have anything to do with protection for the incumbents as they run for re-election?
We also have a problem with the concept of paying for the cost of health insurance. Our presidential candidates are touting their solutions for the problem of paying for medical bills. They claim the poor do not have access to medical care, but what then is the purpose of Medicare and Medicaid?
This was supposed to provide for the welfare of the poor and uninsured and, especially in New York, gives very generous coverage to those without insurance. In fact, a recent study shows that New York spends more on Medicaid recipients than it would cost to buy them a health insurance policy from a private company.
Now, add to the cost of the medical care the cost of administration salaries, benefits, and pension costs and you can get a grasp on why the Medicaid and Medicare programs are bankrupting our state and federal governments and, at the present rate, will cause a financial implosion for our descendents.
Government was supposed to solve problems and they are doing a very poor job. In fact, if we examine the total picture, we find they are causing more problems as they lay the burden of paying for them on the taxpayer. The people in power pass laws and initiate expensive programs with the objective of keeping themselves in power. In this endeavor, they are very successful.
Until the voting public gets smart enough to see through the deceit and massive con jobs, this practice will continue. We get the government we deserve.
Budd Schroeder is a member of the Board of Directors of the National Rifle Association. He is Chairman of the Board of the Shooter's Committee On Political Education (SCOPE) and Vice President of the Judges & Police Conference.
|
Comments: Comments Off Send a link: Tell a friend about this. Link to this post: Permalink Send us your link: Trackback link |
Filed under: The Right Side Tags: rebates, tax |



