Cost of Government Day (COGD)
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Title: American workers deserve to profit

Date: September 1, 2003

Source: Daily News, Jacksonville, NC

It's Labor Day: a holiday that has been set aside to provide a day of rest for the American worker. Today, most of us will relax, perhaps spend some time at the beach or grill some steaks.

Tuesday morning we'll return to our work, as past generations did after their Labor Day rest, forced back to one inevitable reality that most can't escape - the need to labor for a living.

It's a good day to reflect on the state of our personal balance sheets.

Congress officially declared Labor Day a national holiday in 1894. In the later years of the 19th century, when the industrial revolution reconstructed American society, and talk of honoring workers first arose among union organizers, workdays could far surpass the current eight-hour standard. Many people worked very hard for modest "personal profit."

Nineteenth century founder and president of the American Federation of Labor, Samuel Gompers, acknowledged the importance of profit when he said, "The worst crime against working people is a company that fails to operate at a profit." We agree. Workers prosper when businesses do.

Of great concern, however, is that the average worker's after-tax profit is being reduced dramatically by an overwhelming tax burden. By one measure, each American worked a total of 193 days this year, or 52 percent of the year, from January 1 to July 11, simply to pay for the cost of national, state and local governments. The number includes all taxes, regulations and government deficits, according to the advocacy group Americans for Tax Reform.

As a national average, 52 percent of what Americans earn, a little over half the profit of the workday, goes directly to the government.

Think about that. Half of all your productive labor is in service to government.

Given the tax burden, consider the amazing creativity the marvelous work ethic the average American has. On about 48 percent of their pay workers pursue an education, pay their way through life, raise kids, provide for their retirement and help others by giving to charity. What further generosity and grace would be possible from average workers if allowed to keep more of their hard-earned money?

Yet, earning a fair profit could prove even harder for North Carolinians in the future. Despite well-publicized state budget problems, legislators at all levels of government still don't get it.

Legislation continues to be pushed that could cost taxpayers millions of dollars more. One outcome of the continual expansion of government is that it stagnates job growth as companies are forced to pay for programs and policies they cannot afford. And fewer jobs mean less people working, less job mobility and less profit for the workers.

In the end, the workers will pay for the choices of their leaders and their personal profit margins will drop even further.

How can the average American stop the money drain? Citizens can start refusing to approve new taxes and regulations to cover government shortfalls. Despite the prophets of doom and gloom, when prudent business measures are applied to the public purse, a myriad of no-new-tax solutions are quickly found. Governments can live with a lot less, if the citizens funds are handled correctly. Folks need to keep telling their representatives to fix their budget problems and then stick to their guns when it comes time to vote.

The average citizen's profit margin after taxes isn't good enough. Americans have learned to live with less and less take-home pay over the years.

This Labor Day we need to encourage government to live on less. Americans' personal balance sheets deserve a brighter future.