Tag Archives: Economy

Economy, Fair Tax, Media, Politics

Spreading The Wealth Gone Wild

Where President Clinton built wealth-spreading into the tax code, President Obama put it into overdrive by adding “social justice” to it with the addition of the non-affordable Affordable Care Act. A nationalized health care scheme that requires the young and healthy to pay for the old and infirm. The consequences are surprising, and getting worse.

In a random act of journalism, CNBC reporter Jane Wells gives the striking details of a CBO report released last week entitled The Distribution of Household Income and Federal Taxes, 2010. (Table 3, Page 13) In personal income taxes it boils down to this, the rich don’t pay most taxes, they pay ALL the taxes. The upper two quintiles, or 40% of taxpayers, pay 106% of all personal income taxes. For the lower 40%, their “taxes” are a revenue stream.

Politicians are pretty slick when it comes to manipulating the tax code. Which is why we must get rid of it and replace it with something that can’t be used as a tool for class warfare and social engineering. The FairTax is the best alternative, for everybody. But I digress.

Remember the Taxpayer Relief Act of 1997? The tax code becomes a vehicle for spending programs.

Wielding the tax hammer for social engineering increases public debt. Lesson not learned here is that money doesn’t grow on trees and, stop increasing the spending. But it’s OK if you can use the tax code to buy votes. What? This is where the class envy/class warfare tactic, as connected to the tax code, was taken to a higher level.

The Taxpayer Relief Act of 1997 made additional changes to the tax code providing a modest tax cut. The centerpiece of the 1997 Act was a significant new tax benefit to certain families with children through the Per Child Tax credit. The truly significant feature of this tax relief, however, was that the credit was refundable for many lower-income families. That is, in many cases the family paid a “negative” income tax, or received a credit in excess of their pre-credit tax liability. Though the tax system had provided for individual tax credits before, such as the Earned Income Tax credit, the Per Child Tax credit began a new trend in federal tax policy. Previously tax relief was generally given in the form of lower tax rates or increased deductions or exemptions. The 1997 Act really launched the modern proliferation of individual tax credits and especially refundable credits that are in essence spending programs operating through the tax system.

“There’s no difference at all in terms of the effects on the federal deficit,” says Roberton Williams of the Tax Policy Center. “It’s perfectly equivalent. It’s just easier to say, ‘I cut your taxes’ as opposed to ‘I created a new federal program to send money to people.’”

Links: The rich do not pay the most taxes, they pay ALL the taxes  |  Happy Tax-The-Rich Day

 

2010 Election, 2012 Election, 2014 Election, Economy, Politics

New Leaders Wanted, Ruling Class Shows True Colors

The next time you hear Harry Reid or John Boehner hawk a budget, or any other kind of spending bill like the sequester, where all the spending happens now and the savings happens years in the future, consider that a con job that has run its course.

Speaker of the House John Boehner (R)
Speaker of the House John Boehner (R)

After only one year of the sequester, that was supposed to last 8 years, it has already been raped by the “deal” passed by the House today.

Real fiscal conservatives. No! This has nothing to do with conservatives. This has to do with honesty. From now on, there will be no promises for anything happening in the future in exchange for something else happening now. It’s a lie. The “future” never comes.

There was a bill passed that was called PayGo back in 2010. It was in connection with raising the debt limit back then. Since then, raising the debt limit has become an annual habit of Congress, lacking the courage to control spending and treat a limit like a limit. Hell, they lack the courage to even spend the same amount next year as was spent last year. The PayGo legislation said that any increased spending had to be coupled with an equal amount of cuts somewhere else. PERIOD. That proved to be another lie and hasn’t been followed since the day it was passed. How else can anyone explain a $17 Trillion debt, heading to over 20 in a few years.

The budget hoopla in Congress today proves the point. No leader of either party in either branch has what it takes to tackle the real economic problems this country faces. Medicare, Medicaid, and Social Security. And the House, under John Boehner, is supposed to control the purse of the government. He’s failing at his job. Spare me the incredulity and attacks on conservatives Mr. Speaker. You’re not the one to lecture anyone about credibility.

For 2014, we need new leaders.

2014 Election, 2016 Election, Economy, Fair Tax, Obamacare, Politics

Budget “Deal” Reached, But

What do you call a budget deal that spends $63 Billion of “settled law” called the sequester? I call it a Republican surrender. Never mind that since the sequester began, the Obama administration has claimed some economic recovery. And never mind that the sequester passed with bi-partisan support.

For un-sequestering $63 Billion dollars today and for the next eighteen months, the deal promises reductions totaling $85 Billion elsewhere. But that’s not for today or the next two years. That’s for the next ten years. Who in their right mind believes this will happen?

But that’s not even the most insane talking point the House and Senate Republican leadership is touting. They use buzz words like “specific deficit-reduction provisions” and “mandatory savings” and “non-tax revenue” that makes up this fictitious $85 Billion number. And “if you’re for deficit reduction, you’re for this agreement.” The snake oil they’re selling is that this agreement would cut the deficit by between $20 and $23 Billion, as if that actually means something. They call it “a step in the right direction.” It’s surrender. It’s means nothing more than trying to look relevant in standing up to Democrats for the sake of getting something done. It’s not going to stop demagoguery from Democrats. It’s not much more than moving the deck chairs around on the Titanic.

With a national debt of $17 Trillion, $23 Billion is like a mouse fart in a hurricane. There’s no serious attempt, not even the slightest attempt, to deal with the debt and deficit spending whatsoever. It’s like driving over the cliff at 60 miles per hour instead of 65.

Speaker Boehner is hoping to win something by playing defense with the Democrats. Mr. Speaker, you don’t win anything by playing defense. What Speaker Boehner is doing is effectively managing the decline of the Republican party. He’s doing it in two ways. By budget deals like this, which will rise its head again in time for the 2016 general election when he’ll once again cower to the demagoguery of the Left. And by attacking republicans in the House and throughout the country. Republicans who want to see real evidence of getting to a balanced budget, which necessarily means working toward not spending more than we take in, (to quote President Obama) PERIOD. I recall that that’s what they were elected and sent to Washington to do. And he can start by putting an end to the insane “baseline budgeting” scheme. If you and I can’t use baseline budgeting, what on earth makes any sane person think that the government should? They should be forced to justify every dollar of their budget before it is allocated.

This budget deal dodges a bullet. To win seats, Speaker Boehner needs to go on offense and shoot one of his own. He needs to carry a republican platform instead of a democrat-lite platform. He needs to talk about bold tax reform like the FairTax. Something that eliminates the current, punitive IRS tax code.  He needs to talk up health care reform like H.R.2300, the private-sector solution. And what better time to do that? And he needs to talk about how unleashing the economic engine of the country, achieving true energy independence, creating jobs, and putting people back to work again will turn this ship around. That’s what the American people want. And that’s something that, so far, only Republicans have a chance at delivering. Problem is, I’m not so sure Speaker Boehner has what it takes to get us there.

Economy, Politics

Drug Cartels Overrun Mexico’s Government, Economy

Mexico’s “war on drugs” isn’t working. The drug cartels not only are exporting more drugs, but are branching out to include minerals like oil and iron ore. What?

In 2008, Lazaro Cardenas handled only 1.5 percent of Mexico’s iron ore exports to China; by mid-2013, the seaport was shipping out nearly half.

Isn’t it time to re-think this whole war on drugs thing? Lifting the prohibition on marijuana, the single largest moneymaker for the cartels, would be the single biggest blow to the cartels than anything the corrupt Mexican government can do on its own. Mexico clearly has lost control of their government and economy. Decriminalizing marijuana would do a few desirable things. Make our own streets safer, relieve the burdens put on law enforcement, the court and correctional systems, and end the growing “spice” (artificial marijuana) industry.

Link: Mexican Drug Cartels Now Make Money Exporting Ore  |  Hit Mexico’s Cartels With Legalization

Economy, Obamacare

Obamacare “Success” Story

It’s a short story. This isn’t exactly what I call health care reform, or a success.

Turns out, I can keep my existing group health insurance plan with United Healthcare. That’s the good news. And that’s only because King President Obama waived the (settled law) employer mandate until after the 2014 election. The bad news is, my premium doubles, and my deductible goes from $3,000 to $12,000 a year. For all practical purposes, I’m self-insured. This is what spreading the wealth around looks like. And, it’s only the beginning. The other shoe drops when the employer mandate finally goes into effect and 150 million more policies get cancelled.

Still waiting for Obamacare to tell me what kind of coverage I can get. It’s been over two weeks now since they told me they would send policy coverages to me in the mail. Snail mail.

You’re welcome to share your success story via comment.

Economy, Obamacare, Politics

Obama Shifts Blame From Himself To Insurance Companies

In response to everyone’s dissatisfaction with Obama’s lying about ‘you can keep your plan and your doctor, period,’ and in the wake of over five million obama_on_aca-trustpolicies being cancelled, affecting three times that many people, Obama’s humbling and gratuitous speech on Thursday was pure political hokus pokus. And more FUD factor.

Constitutional authority aside (everyone knows he doesn’t respect that), King President Obama declared that he now wants insurance companies to let people get the plans that they like back, he didn’t say at the same price. He didn’t change the law. All he is doing is he’s choosing not to enforce the Affordable Care Act, aka “settled law,” for a year. See, it’s only settled law when he wants it to be settled law.

He did this on Thursday in an attempt to stifle the House from passing the H.R. 3350: Keep Your Health Plan Act of 2013. A bill that he promised to veto and ultimately passed the House Friday by 61% with bipartisan support. (R’s 222, D’s 39) That bill does change the law, and does allow insurance companies not only to offer policies that people may want, but it also allows new purchasers to buy plans that they want too, without all the ACA mandates.

Since Obama did not change the law, the policies are still illegal under the ACA. It’s unrealistic to expect that insurance companies will start selling illegal policies when they are given zero immunity from Obama should they end up in court in a dispute over an illegal policy. And since Obama’s idea is to postpone this enforcement for a year, there’s no reason to assume that the premiums will be the same as before the ACA went into effect either.

So what happens when the insurance companies don’t bow to the King and reinstate illegal policies? He can, and will, say how the insurance companies are just greedy, bla bla bla, and take the focus of blame off of himself and the ACA and shift it to “those evil insurance companies.”

Why does President Obama say he’ll veto the Keep Your Health Plan Act of 2013? The President says that Obamacare introduces competition which will bring down cost. The true part is that competition brings down cost. The lie part is that Obamacare is competition. By vetoing this bill, Obama is eliminating competition by preventing insurance companies to offer plans of their own that people want that are not burdened with government mandates, ie. “inferior policies.” And he can’t let the free market work if Obamacare is to succeed. To put it another way, unless the insurance industry is neutered or just goes out of business, he won’t be able to fundamentally change the country to a nationalized health care model.

China, Economy, Media, Politics

Debt, America’s New Massa

The Daily Beast is just dumfounded at the suggestion that there is a new kind of slavery going on. It’s OK that The Beast doesn’t get the metaphor. Maybe it’s a little national-debt-per-capitatoo deep for them to understand.

It boils down to this. like slaves were owned, our future generations will be owned by the debt we are putting them in today. China, the debt, becomes the new Massa for generations to come.

The political left has gotten drunk with their “racist” ranting. That’s OK as long as everyone realizes that it just means they have no way to discuss the real problem, the debt, so they do what they do, re-direct the issue to anything else.

Link: The Right’s Slavery Obsession – The Daily Beast.

Economy, Obamacare, Politics, Uncategorized

aSide Order

The experiment using monkeys is framed as them receiving unequal pay. It certainly, and quickly, brings out a primal behavior. If I were to characterize the behavior, I would see it from a different perspective. Like the motivation and energy that is inherent in seeing a goal and doing something to make that goal.

Let that lab person represent the government providing handouts. Given equally, there is no motivation or drive to do anything more or realize full potential. That is why I would measure compassion, not by how many people I can get on the welfare or food stamp rolls, but by how many people I can get off of them via people realizing their own potential and moving up that economic ladder. Instead of running from side to side.

endofstory

 

showing-up

endofstory

Dinesh D’Souza & Michael Shermer in debate at Oregon State University. Questions from the student body about Universal Health Care / ObamaCare.

endofstory

This quote is not from Ben Stein. That, according to Snopes according to Ben Stein. But, does it really matter who said it? Read it for what it says. Who wrote it is irrelevant. I’m guessing he, or she, wasn’t a Democrat.

ben_stein_paradox_quote

Economy, Obamacare, Politics

Obamacare Enrollments First Day, 6, Second Day 248

obamacare_enrollments4 million visits and 6 enrollments on first day. 248 enrollments by day two. To meet goals (and projected cost savings), the enrollment must be 39,000 per day. So far, the vast majority of enrollees in the state exchanges are going to Medicaid. Which means, they are not contributing to cost reduction, but rather government dependence. Which means, higher costs for everyone else, and increased debt.

I remember President Obama saying (I know, he says a lot of things) that he wouldn’t sign the bill if it added one dime to the national debt. If he doesn’t himself call for the repeal of his signature train wreck of a piece of legislation, then you can add this to his list of lies.

 

http://youtu.be/6iFfohhfau8

2016 Election, Economy, Obamacare, Politics

“Affordable” Care Act Mandate

In an effort to get to the meat of the penalty that Obamacare will impose on you, in the unlikely event that it would be possible for you to keep your insurance policy that the government (not you) deems unsatisfactory, below you will find the law as is in the Federal Register.

The penalty for not buying a government approved health insurance policy, or not buying an insurance policy at all, begins now at $95 and increases to $695 per year or 2.5% of your income by 2015, after the next presidential election.

The Joint Tax Committee prepared a summary of Obamacare that includes this discussion of the mandate:

The penalty applies to any period the individual does not maintain minimum essential coverage and is determined monthly. The penalty is assessed through the Code and accounted for as an additional amount of Federal tax owed. However, it is not subject to the enforcement provisions of subtitle F of the Code. The use of liens and seizures otherwise authorized for collection of taxes does not apply to the collection of this penalty. Non-compliance with the personal responsibility requirement to have health coverage is not subject to criminal or civil penalties under the Code and interest does not accrue for failure to pay such assessments in a timely manner.

On page 19 of this 19 page law, you will find this:

b)Special rules. Notwithstanding any other provision of law—

(1)Waiver of criminal penalties.In the case of a failure by a taxpayer to timely pay the shared responsibility payment, the taxpayer is not subject to criminal prosecution or penalty for the failure.

(2)Limitations on liens and levies.
If a taxpayer fails to pay the shared responsibility payment imposed by this section and §§1.5000A–1 through1.5000A–4, the Secretary will not file notice of lien on any property of the taxpayer, or levy on any property of the taxpayer for the failure.

The IRS only has the power to deduct whatever penalty you may incur from your tax refund. The Obama administration knows that poor people look forward to receiving their refund check each year, and don’t mind preying on the poor to take it from them. The poor would be wise to consult with their employer on how to not overpay their taxes by completing a new W-4 form so that they will get the maximum in their paycheck and, not expose themselves to government abuse.