Posts Tagged 'Taxes'

Illinois To Lose Electoral Votes

By Caomhin

They raised income taxes by 66%.  That is not a type, this is what happens your Congress goes absolutely berserk and starts spending like there is no tomorrow.  Eventually tomorrow comes:

The hike increases the state’s personal income tax rate from 3 percent to 5 percent.

In real numbers, if your gross income is $50,000 a year, your state income taxes will rise from $1,500 to $2,500 a year.

The hike increases the state’s personal income tax rate from 3 percent to 5 percent.

In real numbers, if your gross income is $50,000 a year, your state income taxes will rise from $1,500 to $2,500 a year.

Addictions are hard to break.  The Illinois legislature is addicted to that sweet, sweet, taxpayer money.  I wonder how many people will begin to be behind on their own bills when they loose nearly $100 a month, will have to sacrifice things for their children, and otherwise suffer the consequences of an irresponsible legislature.   In short order you can expect the unemployment rate to increase in Illinois as lower levels of disposable income means less money being pumped into local businesses.  Couple that with the nearly doubling of the corporate income rates and that may not be a problem when businesses uproot and move out of their state.  Given the state of the economy expect people to follow as well.  As a result of the disaster they have created they have severely punished the people of Illinois and due to the impending migration that will most certainly occur, they will also lose electoral votes.  Keep an eye over the next few years how much the representatives to the Federal Government try to earmark to their state.  They will have to get money from somewhere.

Hack Ties Support of Tax Cuts to Supporting Slavery

By Caomhin

James W. Loewen, in his article in the Washington Post, entitled, “Five Myths About Why the South Seceded,” added this gem to his article:

So poor white Southerners supported slavery then, just as many low-income people support the extension of George W. Bush’s tax cuts for the wealthy now.

Nice,  right?  This hack tries to equate lower tax rates to supporting slavery.  I can only imagine what he was smoking at the time he came up with that little ditty.  I suppose he doesn’t bother checking things like, oh I don’t know, facts.  Please refer to the chart on this previous post.  Oh those greedy people making between 26,250 and 32,550 in Adjusted Gross Income struggling to pay bills and feed their families and their 87% tax reduction from the Clinton tax rate they previously suffered from, they must be pro-slavery.  I wonder if Loewen even knows that the GOP was formed as an abolitionist party.  I wonder if he understands that the government does not own our incomes and our livelihoods or if he even cares.  What a hack.

Liberals Don’t Care About Lower and Middle Class Families

By Caomhin

There’s no hiding it at this point, after having rejected a 2 year compromise that was the result of negotiations between the White House and the GOP.  Liberals went off the deep end because the plan did not include provisions to soak the rich.  Their deep seated hatred of high income earners and the sheer nerve of people not wanting to have to surrender upwards of 50% of their income after all current levels of taxes are collected have caused them to go off the deep end yet again.

Noted nutjobs such Keith Olbermann are now threatening to primary Obama because he is not going to jack up the tax rates for people who invest in start up businesses, employ people, or save money that lending institutions can use to fund the purchases of homes, cars, etc. No, it’s not enough to have the estate tax go up to level in the mid 30’s, Liberals must collect much more than that if a person were to have the audacity to earn money and the utter gall to die and will their assets to their children instead of Uncle Sam.

Yes, such is the level of liberal rage that their House caucus would rather taxes go up on every single American than to have to live with the nightmare of people not being gouged by the government for two more years.  It is much more important to take away disposable income from rich people than to make sure poor people can afford such trivial things as food and water.

Liberals are probably still scratching their heads over why they had their tails handed to them in November.  It’s garbage like this.  I’m convinced that not only do Liberals not understand math or accounting in any fashion but they fail to understand business and good governance.  With Obama up there throwing around hostage analogies and calling John Boehner a “bomb thrower,” which was even more offensive considering he used that phrase on Pearl Harbor day, they have shown themselves to be utterly clueless and completely callous.  The result of their temper tantrums and blind hatred will hurt all Americans yet again.

Bush Tax Cuts Should Be Made Permanent

By Caomhin

There is talk in some people of “the new normal,” which is essentially a view that our economic situation will never vastly improve over where we are today in the sense that there will be high levels of unemployment, lowered consumption levels, and a generally poor economic climate.  I strongly disagree with this notion.  I strongly disagree with this sentiment.  We are the greatest country on the face of the Earth.  Americans can overcome any obstacle that is thrown in their way provided that we are not hindered from doing so from external forces.

Government is not inherently bad.  I am a proponent of effective, efficient, and accountable government at each level.  On the other hand, big government, is inherently bad.  A large, bloated government puts a strain on its people through unnecessary regulation, high tax burdens, and disincentives to create among other things. Contrary to what Joe Biden recently said, essentially that government should get the credit for every innovation..ever, his view is completely wrong.  Milton Friedman’s assertion is correct.  Freidman, of course, said:

The greatest advances of civilization, whether in architecture or painting, in science and literature, in industry or agriculture, have never come from centralized government.

Innovation spurs economic activity along with other factors such as certainty, the potential for profits and growth, and freedom in the market place.  “The New Normal,” does not exist if we lower tax rates and cut spending, if we eliminate inefficient, ineffective programs and focus on maintaining a streamlined government that is responsive to the needs of the people and respects them as individuals.

We have a number of crisis heading our direction from the recently passed health care abomination to social security and Medicare.  We have the means to fix these programs and eliminate billions in waste.  We have the ability to start moving towards a partially privatized system of retirement which, when proven effective, will hopefully lead to a completely privatized system.  In terms of the current economic conditions taking disposable and investible income out of the private market to put in the government’s coffers is an astonishingly bad idea.

We are Americans, we do not begrudge someone success, we wish it upon them.  We should not be green with envy when another person reaches great heights, we should congratulate them.  When the representatives of our government go on enormous and never ending spending sprees with the citizens’ money, it is shameful when they go on TV and claim the government “can’t afford” to stop their reckless indulgences.

I am whole heartedly behind Sens. Coburn and DeMint’s crusade against earmarks and I commend Sen. Coburn in particular for reminding the GOP that they can and will face primary challenges should they ignore what the people want.  What the people want, of course, is an end to the earmark process, lower taxes, more freedom, and good governance.  We are entitled to this and we are entitled to leaders who will provide this for us.  We will continue to take our fight to the ballot box and we need these tax cuts to be permanent.

Liberal Rage Being Focused on Tea Party

By Caomhin

The level of anger that has been and continues to come from the left, in an increasing manner, at the Tea Party movement is something to behold.  Simply watching any broadcast that MSNBC puts on illustrates that point, as leftists like Keith Olbermann, Rachel Maddow, and Chris Matthews skeik in horror whenever the topic of fiscal responsibility arises.  Besides the hacks that comprise their network line up, other members of the mainstream media, unions, and other openly left wing organizations and individuals have expressed extreme rage at the Tea Party, attempting to demonize other individuals who are trying to hold the government responsible for the fiscal actions.

How ridiculous has the Leftist’s hatred grown?  Their animosity has now delved into the realm of comic books:

In issue No. 602 of Captain America, “Two Americas, Part One,” the title hero and The Falcon, a black superhero from New York City, stumble upon a protest rally in Boise, Idaho. They see scores of protesters carrying signs that say “Stop the Socialists!” and “Tea Bag The Libs Before They Tea Bag YOU!”

Captain America says the protest appears to be an “anti-tax thing,” and The Falcon jokes that he likely would not be welcomed into the crowd of “angry white folks.”

Hysterical right?  Hot Air has more on this as well as a link to the history of liberal activism in the Captain America series. It’s amazing to me the level or racism contained on the left.  Aside from the stupid Tea Bag joke, the racism on display to essentially say that an African American would not be welcomed into a group, which not only has numerous African Americans in the organization, but has nothing to do with color and everything to do with holding the government responsible for its fiscal actions is beyond belief.  Recall if you will, how union thugs attacked Kenneth Gladney, a racially motivated attack, for participating in a protest.

The left has been brutal over the years to African Americans who do not tow the Democrat’s Party line.  They’ve hurled the highly offensive “Uncle Tom” at numerous African American men who have dissented from the left, including Colin Powell. The left called Condoleezza Rice a “house *****,” on numerous occasions, here is just one example. The Democrats question the racial identity of ever single minority who does not succumb to their wishes.  That takes a tremendous amount of hypocrisy to do so from the political party who embraced slavery (the GOP was founded as an anti-slavery party) and embraced Jim Crow laws.  If not for the overwhelming support of the GOP, the Civil Rights act would not have passed over Democrat’s objections.

To return to the conversation regarding Liberal hatred of the Tea Party, we are now seeing top Democratic donors funneling money to try to silence members of the Tea Party through the long held Democratic tradition of astroturfing:

But a close look reveals the APPC’s place in a complex network of money flowing from the mountainous coffers of the country’s biggest labor unions into political slush funds for Democratic activists.

Here’s how it works: What appears like a local groundswell is in fact the creation of two men — Craig Varoga and George Rakis, Democratic Party strategists who have set up a number of so-called 527 groups, the non-profit election organizations that hammer on contentious issues (think Swift Boats, for example).

Varoga and Rakis keep a central mailing address in Washington, pulling in soft money contributions from unions and other well-padded sources to engage in what amounts to a legal laundering system. The money — tens of millions of dollars — gets circulated around to different states by the 527s, which pay for TV ads, Internet campaigns and lobbyist salaries, all while keeping the hands of the unions clean — for the most part.

The system helps hide the true sources of funding, giving the appearance of locally bred opposition in states from Oklahoma to New Jersey, or in the case of the Tea Party Web site, in Illinois.

So distraught are liberals with the fact that keep apprised of the government’s spending and budgeting tactics, that they are ramping up efforts to get people to stop paying attention to what is going on in Washington. After all, this heightened level of attention being paid by American’s citizens has led to an awakening in this country to demand accountability.  I do not believe, no matter what Liberals try to do, that Americans will simply ignore the crushing amounts of debt, high levels of unemployment, efforts to raise taxes, to socialize industries, for one second.

The liberals have made their efforts clear and the overwhelming majority of Americans have rejected these efforts.  Obama won the election based on his rhetoric, on reassurances that he supported the free market, that he would embrace transparency, and practice fiscal restraint, among other things.  At a time when our nation desperately needs these things, he has proven, in just over a year, that he does not intend to honor these commitments.  The leftists have exploded the national debt to the point where it is unsustainable, weakened the dollar, openly threatened sectors of the economy from financial to energy to healthcare, and has attempted to rapidly expand the power and size of the government.  No matter how angry the hard left gets, no matter how much money they spend, they will not stop the American people from demanding their government be held accountable nor fulfill their civic duty from participating in the democratic process, nor be dissuaded from engaging in efforts to inform the public from what is happening in this nation.

Obama’s Change: Record Deficits

By Caomhin

In his State of the Union Obama talked about not rewarding failure.  Americans should keep these words in mind this November and in 2012.  Obama’s projected budgets cast deficits as far out as projections allow, and for the fiscal year of 2011 Obama is determined to set records:

Republicans on Monday slammed President Obama’s $3.8 trillion budget as a fiscally irresponsible spending spree, casting doubt on the administration’s claim that the budget reflects cutbacks and hard choices.

The fiscal year 2011 budget, sent to Congress Monday, includes new jobs-creation programs and additional funding for the wars in Iraq and Afghanistan, but is projected to add nearly $1.3 trillion in deficit spending on top of the current year’s projected $1.6 trillion deficit. As he unveiled the budget, Obama warned the federal government to stop treating taxpayer dollars like “Monopoly money.”

Obama has the nerve to utter that last line, failing to recognize his utter destruction he has perpetrated against this nation’s finances.  He is proposing a $1.6 TRILLION DEFICIT. This doesn’t even include his government run health care plan.  This is on top of the $1.56 Trillion dollar deficit he ran last year.  Remember, this is before he and his liberal allies ram even more programs and spending bills down our throats.  Assuming Congress does nothing else, at all, about anything, until next year, Obama will have increased the deficit by $3.16 Trillion in 2 years.  That number is sure to grow.  So for Obama to say that government should stop treating the taxpayer dollar like “Monopoly money,” when he is in fact, the one doing it, it is offensive to anyone who pays taxes and lives in this nation.  He is putting our nation into levels of unsustainable debt and we will all feel the repercussions of this.  The liberals need to go, for the good of our nation, for its survival, they must be voted out.

Another key fact to note from this article:

According to White House estimates, the budget’s deficit for fiscal year 2013 would drop to $700 billion before jumping back up to $1 trillion in 2020, the furthest out that budgeters will predict.

He has projected deficits as far out as they can even project.  Additionally, his budget proposes eliminating most of the Bush Tax cuts that actually spurred investment and economic activity, bringing tax relief to all Americans, and greatly helped American small businesses.  He is also assuming an unemployment rate of close to 10% if not higher for the next two years.  He proposes raising taxes during a depression and spending uncontrollably for as long as he is in office and he thinks somehow, this can fix things.  He is wrong, the liberals are wrong, and they must go.  We cannot continue to pay the price for our “leadership’s” failure.  They must be voted out.

Obama has shown no restraint and refuses to take responsibility for his actions, always pointing the finger at others.  His hubris is so deep that he cannot even recognize the harm he is doing to our nation from the ability of families to maintain purchasing power from a strong dollar to our reputation globally as he continues to undermine our economy.  No amount of rhetoric can mask the reality of the situation.  It is dire and demands immediate action.  Rather than remedy the situation Obama and the liberals choose to exacerbate it, to the detriment of all Americans.  It is unconscionable.  We deserve better and Obama and the liberals must be voted out.

Obama’s Bank Tax and Economic Failures

By Caomhin

Only an idiot would raise taxes during an economic downturn.  Obama is proposing to raise taxes during an economic downturn.  I guess the logical flow there is self evident.

Obama is seeking to impose new taxes on the financial industry for engaging in risky business, such as lending to consumers even when firms know the risk but are forced to do so by government regulation.  As we all know, people like Barney Frank refused to let anyone investigate Fannie or Freddie prior to the financial meltdown, which was a key component to the exposure that tax payers faced when TARP was enacted.  Government laws and regulations, such as the Community Reinvestment Act, signed into law by Jimmy Carter and approved by a liberal Congress, helped to create and exacerbate the financial crisis by lowering underwriting standards on lending.  As the government and elected officials provided cover for the bubble to grow, when it finally popped, they immediately tried to shift blame to the private marketplace, which in fact, would not have allowed the bubble to grow to point that it did, absent government interference.  Liberal backing media supported the government in shifting the blame onto financial firms and the free market despite overwhelming evidence to the contrary.

When the bubble forced, TARP was enacted to shore up the bottom line of financial firms, essentially to cover them from insolvency due to the number of bad loans that were issued, which were, in part, issued due to government regulations.  As you also know, many firms, have already paid back TARP funds with interest.  Some firms never wanted TARP funds in the first place but were forced to do so.  They have also paid these funds back.  Yes, there are firms out there who have yet to pay back the funds are are not back on solid footing as of yet, but Obama’s new tax scheme punishes all financial firms as well as consumers alike and must not be allowed to pass.

From Fox News:

The proposed 0.15 percent tax would last at least 10 years and generate about $90 billion over the decade, according to administration estimates. It would apply to about 50 of the nation’s biggest banks, those with more than $50 billion in assets, and include many institutions that accepted no money from the $700 financial industry bailout.

Fees and taxes, as history have taught us, are passed down to consumers as they increase the cost of operation.  If input costs are increased, we know then, that output costs are increased.  Economics is very clear on this lesson, both in theory and in practice.  At least part, if not all of these fees will be passed directly onto the consumer.  Obama is also seeking to “recoup” TARP funds from companies who didn’t receive TARP funds at all. Funny how that works, huh?

Also important to note per Market Watch:

The fee would also not apply to General Motors Co., Chrysler, Fannie Mae (FNM 1.10, -0.02, -1.79%) or Freddie Mac (FRE 1.38, 0.00, 0.00%) , but would cover most other large firms that benefited either from the TARP or from other federal assistance, including help from the Federal Reserve.

GM, Chrysler, Fannie, and Freddie, all have direct ties to the government, hence they are going to be exempt from Obama’s proposed fees.  I guess this means that if you are in part controlled by the government you are exempt from laws.  See my earlier post on Unions that also illustrates how those with close ties to Democratic Party are also being exempted from laws and taxes that Obama is attempting to implement.

Two things here seem to jump out almost immediately.  The first is that the Obama administration has no economic or business acumen.  With unemployment at 10% and rising, Obama has no answers, and the proposals he is generating will only exacerbate, not alleviate the issue.  His refusal to allow the free market to operate is crushing the American people.  The second is that Obama will only seek to punish those who oppose him and will attempt to shield his supporters from being subject to the laws that he wants to impose upon our nation.

With regards to government intervention in the mortgage market place, at least the President of the Federal Reserve Bank of Philadelphia, Charles Plosser, is speaking out:

“I believe it is important that we [complete the purchases] and reduce our participation in this market, so the private market can once again resume a significant role,” Plosser said. “It cannot do so as long as the Fed is the dominant player, and we would risk delaying the return to normal market functioning rather than promoting that return were our sizable purchases to continue.”

Plosser added that the Fed had been “crowding out” private-sector investors in the MBS market.

The Fed must unwind its other stimulus programs as well. “An appropriate exit strategy to withdraw or restrict the massive amount of liquidity that we have made available to the economy will have to be put into action to keep the inflation rate from rising to unacceptable levels,” he said.

The extra-low federal funds rate must be raised as the economy returns to growth, Plosser remarked. He expects the economy to grow between 3% and 3.5% this year and the next. However, the unemployment rate will probably remain elevated, restraining consumer spending.

There are those who recognize the disruptive force the government is having on the marketplace and it is a positive note that they are speaking up.  Not explicitly mentioned here is that Plosser is also warning about stagflation.  Reading those bolded sections makes this abundantly clear.  Plosser, as many others, included myself, have long argued, is alluding to the fact that government intervention is going to result in high rates of unemployment and inflation, aka stagflation.

Unless or until the Obama administration gets out of the way and allows the free market to operate, Americans will suffer and the economy will not be allowed to reach its full potential.  Foolish policies such as government take over of huge sections of the economy, raising taxes (see also the impending tax hikes coming next year if the Bush Tax Cuts are not expanding, impacting every tax bracket in the United States), a lack of transparency into the operations of quasi-government agencies, as well as poor fiscal and monetary policies will prolong the depression that the government has essentially created.  Whether it is pride, politics, or lack of knowledge guiding this administration we continue to pay the price for their failure.  Now, with looming tax increases, we are seeing it increasingly quantified.