Government Run Amuck?
State and local governments in Virginia have seemingly reinvented socialism. There can be a legitimate debate about government transferring wealth from the rich to the poor. However, when government taxes the poor to transfer their money to the rich, government has indeed run amuck.
Consider the family going to McDonalds for their weekly treat. In addition to the price on the menu, they pay a sales tax and in some jurisdictions they also pay a restaurant meals tax. Local governments need that money so they can transfer it to the wealthy. Don’t believe that government helps the well-off? Today’s Washington Post reports that Virginia now “subsidizes high-income home buyers,” and “may help Loudoun workforce.” According to the Post:
“Under the new program, individuals who make up to $108,000 and couples who make up to $135,000 may borrow up to $417,000, with the interest partly subsidized by the Virginia Housing Development Authority.
VHDA isn’t helping just the rich in Loudoun County, either. According to this press release (requires Adobe) from VHDA:
“Thirteen Northern Virginia housing organizations are receiving good news and much needed funding for first-time homebuyers. The Virginia Housing Development Authority recently announced that it is allocating $70.4 in low-interest financing to these groups to finance affordable homes in Northern Virginia . . . The organizations then combine a variety of local, state, and federal loan and grant programs to design a variety of financing options that meet the needs of buyers in their specific communities.”
The beef isn’t with encouraging citizens to act responsibility through ownership. As this Cato essay points out, "the concept of ownership is at the very core of the idea of personal responsibility." Rather, the beef is with the manner in which government redistributes wealth through subsidies, after taking out a hefty administration fee, of course.