Tag: Taxes

Less Government = Less Taxes

2010 Mid-Term Election Series

Lecture #4

Hear that?  That is what we call bullsh*t in the analytical business……and that other sound is laughter coming from the backrooms of Washington….

The political atmosphere in the country nowadays, thanx in small part to the millionaires running the Tea Party, are convincing the people and the voters that less government equates to less taxes….may I see a show hands of those that believe this premise?

Cool!  Let us go with that shall we?  Let us say that the Tea Party gets their deluded dream of less government and less taxes….a dream of all Americans….Now think about the states, your state……..states depend on cash from the government for many of their most basic programs….your stuff like education, police, fire, infrastructure like roads,  etc….with that money drying up…where will they find the cash to keep the levels of proficiency that they have now?

A little secret……just for you…..TAXES……

Local and state taxes will go up, property taxes will go up…if not then your services that you DEMAND will cease to be offered…..crime will rise, roads will go to crap and education will suffer, except for one week a year when people talk a good plan and have NO idea how to make it work….they have NO workable plan…….

Less government equals less taxes is only a campaign slogan……it has not worked in 40 years…..and in this day and age it will not work now…..

By all means…listen to the babbling of politicians, and I use the term loosely…..give us less government and less taxes….then distribute lots of toilet paper because the results will make you just sh*t…….

Help For Small Businesses

Recently, our president has issued a massive challenge to the GOP in an effort to help small business and as we know….they are the engines of our economy (or at least that is the slogan these days)…it is election time and all the silliness has come to a head….small business is getting more attention that some idiot in Florida…..

Massaging the egos of the small business owners….both parties are not being forthcoming with the truth…..

But will these benefits create the demand that is needed to bring this economy back?

The problem with the small business tax breaks is two-fold: small businesses are incredibly diverse in their craft, and consequently, no single break works for every small businesses. The second issue with the proposed tax breaks is that many in the business see them as too producer driven, as the Small Business Job Act fails to address (and encourage) some much-needed consumer spending. Simply put, businesses do not need more equipment to produce items that are not selling, or selling at lower levels than in the past.

As Billy Rys explains, “Even if they’ll be able to write off their investments in just a few months, they don’t have the customers coming through the doors. They don’t have contracts to fill.” In the end, the usefulness of the proposed tax breaks will depend on the size and type of businesses, in addition to the financial state of the business.

I have been bitching since this whole debacle started with the economy….the Bush bailout only accomplished bank liquidity and the Obama stim plan was to help create demand……neither one of these plans have created the demand needed to jump start the economy….if tax cuts do not make inventories go up then No one will be hired…..if NO one goes shopping then NO amount of tax cuts will jump start the economy…..without DEMAND there will be NO easy recovery…..it is not rocket science!

To Tax Cut Or Not To Tax Cut

From the VOMITORIUM

We have all heard that the Bush tax cuts may expire and all will be bad for the economy…..you know if the tax cuts are allowed to expire then it would be in essence a new tax and jobs vreation would be dead…..think about that…..we have the tax cuts in place NOW mand how many jobs have they helped to create so far?

And then you have these 7 figure media personalities that work for this financial network or that saying that if the capital  gains tax goes up then it will effect millions of Americans who own stocks….another piece of falsehood!  Most Americans do own stocks but they are in mutual funds or similar funds and with rfe-investment they pay NO capital gains tax…….

And then there is the one about the elimination of the tax cuts and small business will not invest or hire or expand or.,….the tax cuts are on income and if a small business has not protected the owners income then they are stupid and deserve to fail……this is not in any way a tax on R&D or such actions…those tax cuts will stay and the companies will still NOT hire….

This is all so much crap being fed to the people in the game of politics…..first of all, there would be NO increase in people’s taxes if their incomes are below $250,000, where most Americans are as it is today……and secondly, not too many Americans have jobs and if there is no job there is no tax….so where is the tax increase?

This is a budgetary issue……how does one lessen the deficit by eliminating revenue …..the whole idea that saving the wealthy money will trickle down to the working stiff has been proven to be a failed policy…why continue the charade?

How long will politicians offer up crap instead of solutions for real problems?

From Rep. Ryan: GOP Spending Reduction Proposal

From the Scriptorium

Federal Budget Deficit Reduction:

Paper #1

There are not many in the Congress that I think should be there because most or inept at governing past their own interests….however….I appreciate Wisconsin’s Rep. Paul Ryan, a Repub…he is young and sharp on financial and budgetary issues…..he has authored a couple of proposals for cutting the budget deficit, while some are good and others I differ with what he see…..I will analyze these proposals…there are 8, I believe….I will give my take on each of his proposals…..(I know you did not ask, but you will get it anyway)

First up is his Cancel Unused TARP Funds and it reads like this:

The proposal would prohibit the Treasury Dept. from exercising authority under the Emergency Economic Stabilization Act to disburse funds for new commitments.  Only those funds pursuant to legally binding contracts entered into on or before enactment the enactment of this legislation will be disbursed.

All TARP Funds returned to the Treasury–including dividends, interests or other payments–will go tp deficit reduction and will not create headroom for the Treasury to exercise additional authority.

All this sounds all to simple, huh?  While I may agree with Ryan somewhat, I cannot jump on this bandwagon…..this part is just a political game being played now that auto makers are fairly stable, I will agree that the fund was basically a blackmail payment to AIG, Goldman and the other Banksters….but there are still banks that are in real trouble, banks that have people’s lives deposited in them and they may need some help secure the people’s savings and other personal things.

I will agree that using the TARP fund for other spending is not doing us any good and that part of it can be shut down……but to totally shut it down while the banks are in trouble, about 700 so far, is just irresponsible and NOT in the best interests of the country.  But all this seems suspect to me….why?  Now that the gamblers on Wall Street have gotten there money from the taxpayers it is some how good policy to start trying to cutting spending.

Deficit spending was originally used to generate demand, not liquidity…..this plan did the opposite….since it is NOT being used for what it was designed to do…then I will agree with Rep. Ryan….reluctantly……

The American People May Not Be In A Coma

Have you heard the news coming out of Arizona?  No!  Not the immigration thing that has everybody’s panties in a twist….I mean the sales tax thing….as reported by the LA Times:

Voters in this famously tax-averse state Tuesday night approved a temporary hike in the sales tax to stave off brutal budget cuts.

The veteran Republican had shocked many in her party last year by advocating the penny sales tax increase, arguing that the state couldn’t simply cut its way out of a deficit that rivals California’s. Critics said it was economic suicide to raise taxes in a recession.

Political observers have noted that because the governor was defying GOP orthodoxy by pushing the tax increase, she had little option but to sign the immigration bill, which is strongly supported by most Arizona voters and an overwhelming proportion of Republicans.

It seems that the American people, at least Arizonans for now, agree with me that some form of tax increases are needed to save needed programs.  The residents voted FOR the increase; this was not some sneak attack on their lives by some shady, back street deal made with politicians.

Given the facts, as best as a politician can give the facts, and the people can make a decision that effects their lives……a plus for more direct democracy.

Social Security Has Its Problems

Inkwell Institute

Federal Budget Deficit Series #6

Before someone says….Duh!….and I know they will……I like stating the obvious in case some are not paying attention……I am aware that this subject has been bitched about in Washington for a generation or more…..I know all about the problems that “Boomers” are causing for the system…..and I know that some form of reform is needed…..before I talk about the reform let us look at the growing problem (yet again)…..

As reported in the AP article:

Social Security is financed by payroll taxes — employers and employees must each pay a 6.2 percent tax on workers’ earnings up to $106,800. Retirees can start getting early, reduced benefits at age 62. They get full benefits if they wait until they turn 66. Those born after 1960 will have to wait until they turn 67.

Social Security’s financial problems have been looming for years as the nation’s 78 million baby boomers approached retirement age. The oldest are already there. As that huge group of people starts collecting benefits — and stops paying payroll taxes — Social Security’s trust funds will shrink, running out of money by 2037, according to the latest projection from the trustees who oversee the program.

The recession is making things worse, at least in the short term. Tax receipts are down from the loss of more than 8 million jobs, and applications for early retirement benefits have spiked from older workers who were laid off and forced to retire.

The national debt — the amount of money the government owes its creditors — is about $12.5 trillion, or nearly $42,000 for every man, woman and child in the country. About $8 trillion has been borrowed in public debt markets, much of it from foreign creditors. The rest came from various government trust funds, including retirement funds for civil servants and the military. About $2.5 trillion is owed to Social Security.

For decades the Congress has been skimming funds from SS and using it to save the budget from such drains as war, etc…..not ONE of the a/holes mentions that when they start their crap about it going broke.,…yes it is going broke and it is the fault of the Congress….I wish they would stop blowing smoke of the citizens asses and admit that they are the reason the fund is in sad shape….not the Boomers…

And there is the problem……the a/holes in Washington have been skimming off the fund for decades and now it is all the “Boomers” fault that it will be bankrupt by 2016….Okay I am a smart ass….do I have a fix for the problem?

Hey!  Here is a novel idea……..make people pay their FICA and Medicare taxes……simple huh?……did you know that people that make over $75,000, I believe, are exempt from paying these taxes on everything over that figure……it will help the immediate problem and probably make it more stable in the coming years….yes, it is that simple!   (he said condescendingly)…..another thing…STOP!  Raiding the fund to pay for bullshit programs that win votes!

Why Is The Country Broke?

Professor’s Classroom

Subject:  Economics/Public Policy

Budget Deficit #5

In the past year there has been hours upon hours of the threat of the country going broke…surely you are aware of this by now…..Is it broke?  Then how does it happen?

Repubs and conserv Dems, which includes everyone in Washington,  say that it is the fault of entitlements and the out of control spending that the government has engaged in…..But how did our lack of cash come about?

If we listen to Repubs it is the give a ways from the entitlement programs…you know the services like Social Security, Medicare, etc….they say that these programs are eating up more and more of the revenue of the US and that it must be stopped…and of course, it is all the fault of Baby Boomers and their damn need to retire…

I have given this talk before…..I AGREE…it is all the fault of the give-a-ways….surprised?….Do not be…the give a ways I am referring to is taxes……apparently dipsticks do NOT know that taxes are the sole source of revenue for the country and every tax cut is doing NOTHING but making life worse for the people…..okay, it is a popular issue….everybody thinks that life will be magically better when tax cuts kick in…..my question now is….after 20 years or so of these magical mystery benefits…..how has it worked out?

Look at the states and their problems…..almost every problem that they face is because for a couple of decades they have given away all the state income in tax breaks and such to companies that they want to attract to the state….once again…how has that worked out?  If you want states to solve the ills of the society, then that will take money and tax cuts do NOT generate anything but votes….but yet the people still think that tax cuts and breaks and incentives will be a magic pill that will cure all the problems that come to light……it is a LIE!  And anyone that believes that is DELUSIONAL!

Everyone can relate…..without income there is NO progress or stability!  The use of stats to make the case for tax cuts is another lie…….look at reality…..poverty has risen during the years of the tax cuts….so who benefits from the cuts?  Bet it is not YOU!

Where Does The Money Go?

Daily Agitator

I have bitch extensively about the economy and that the people are getting the short end of the shaft….but I was awake (as usual) at 0300 hrs and saw an ad for a tax problem agency and it got me to thinking about the whole tax relief thing…..

Let me ask my reader….do you pay your taxes on a regular basis?  Do you feel that you get a fair shake from the IRS?

Most Americans pay their debt to society through their taxes and yet some do not….the ad I am speaking of is from a firm that specializes in help tax evaders…..yes, I said tax evaders!

These people owe the IRS a large sum of money in taxes, they drag their feet in payment and wait for a deal to be offered that will let them pay a much smaller amount than what they owe…..the firm I am writing about says in their ad that they have saved tax payers $100 million so far….that is a $100 million that was owed to the country and they did not have to pay….can you say that?

My point is…because they are wealthy does not mean that they should be allowed to NOT pay their fair share…we have to pay….everyone should have to pay…..I mean the wealthy already have many many deductions that we normal people cannot use….then why do they get a free ride?

The Tea Party Groups are pissed off about taxes going up…..where is their rage against the tax evaders in their midst?  Oh my bad….they are wealthy also….then who stands with the “little” people on the tax thing?

People stop letting all this pass without a challenge!  If the one firm has saved the evaders $100 million then how much has the others saved?  Do you realize what all that money could fund with one simple law?  Maybe the deficit would not look so bad if we were getting all the tax revenue that is OWED…….

Tax Incentives?

For as long as I can remember in the political arena, tax incentives have been a buzz word to try and convince people that something is being done that will help whatever the situation is at the time….

The more things change, the more they stay the same…..someone somewhere made that line famous…..Obama’s new job proposals is the same line that has been talked about for generations….that is about all it generated ….talk!

President Barack Obama on Tuesday proposed a tax incentive for small businesses that add workers, even as Congress struggles to figure out how such an idea would work.

Obama’s other tax proposals were more familiar to lawmakers. He proposed extensions and enhancements of several tax breaks that were part of the economic stimulus package passed in February, including enhanced tax write-offs for companies that buy new equipment.

Obama also proposed eliminating capital gains taxes on small business stock, if it is purchased in 2010 and held for at least five years, expanding a tax break enacted in the stimulus package.

The Repub response to the proposal was a predictable as winter…….they hated everything the Prez said about jobs creation….and I mean EVERYTHING!  But their ideas sound familiar also……

–Give small businesses a tax deduction equal to 20% of their income.

–Let small businesses band together in associations to buy health insurance more cheaply.

–Curb civil lawsuits.

–Lower individual income tax rates.

–Expand health savings accounts, which are being squeezed in some of the current health-care reform proposals.

–Increase businesses’ ability to recover current losses by refiling prior tax returns.

Basically they are saying…….Cut regulations. Freeze spending. Cut taxes. No new taxes…..oh God forbid let us not leave out the old reliable…tort reform….there you have the Repubs answer to the current problem of NO jobs….Sorry, Batman….but that whole line of ideas is tired and antiquated……as a matter of fact it sounds very familiar to their health reform ideas….basically, the answers are the same regardless of the issue….one size fits all…..

But is this the big answer to a huge problem?

How To Make A War Personal

For years now I have said that the wars we are now fighting are NOT personal…..only a handful of people are truly effected by these actions……I have also said that if the American people had more skin in these things then the war would have ended awhile back……but now following along those lines someone was come up with an idea……

Influential US lawmakers on Thursday called for levying a new income tax to pay for the war in Afghanistan, warning its costs pose a mortal threat to efforts like a sweeping health care overhaul.

The group included House Appropriations Committee Chairman Dave Obey; Representative John Murtha, who chair that panel’s defense subcommittee; and House Financial Services Committee Chairman Barney Frank.

The proposal, a heavily symbolic measure seen as having next to no chance of becoming law, would impose a war surtax on income beginning in 2011 — though it would allow the president to delay implementation by one year upon deciding the US economy is too weak to sustain such a tax shift.

It would also exempt members of the US military who have served in combat since the September 11, 2001 terrorist strikes, their families, and families of soldiers who died as a result of combat.

The measure would create a three-tiered change in income tax with the goal of paying for all of the war’s costs.

Couples earning up to 150,000 dollars per year would see a one-percent increase in their regular tax level, from 15 percent currently to 15.15 percent.

For those making between 150,000-250,000 dollars per year or 250,000 dollars or above, the president would have to set the rate increase high enough to pay for the remaining war costs, and in such a way that the middle-tier earners pay half what the top earners do.

Currently, the war costs roughly 68 billion dollars per year, which would mean that the middle tier would see its rate rise from 28 percent to 29.5 percent, while the top would climb from 33 percent to 36.6 percent, according to a person familiar with the plan.

As said in the article it has little to no chance of being passed…..but it is a thought……I also think that it would help make these wars more personal than they are now and in doing so would fuel a new anti-war movement…….which in turn could help end the killings on both sides…..

I need to pat myself on the back a bit (why not….it is my right) back on 27 February 2007 I called for a “Patriot Tax”….but my idea was to fund all the assistance that vets needed and were not getting at the time……this latest thing from Obey is along those same lines….