Monday, February 23, 2009

Speaking of Taxes, Part III: It's Your Taxes, Updated

Since the seem to be magic number in this administration of who's rich is $250,000.00 and since this administration thinks those who earn that much and more should pay more, let's look the facts.

Using my previous 2006 model, because it has the latest and most updated data, in my previous article we saw that those having AGI earnings of $31,987.00 or more (top 50%) paid 97.1% of total individual income taxes collected.

So let's take it further; anyone who had AGI $108,904.00 or more income were in the top 10% of earners in 2006 and paid 70.79% of all individual income tax revenue.

Further we break it down to the top 5% of all taxpayers starts at above $153,542.00 paying 60.14% and the top 1% starting at $388,806.00 paying 39.89% of 100% of income taxes paid in 2006.

Which means that earners above that $31,987.00 mark and below $108,904.00 mark represented 40% of all individual tax payers and paid a total of 26.22% of individual tax revenue and coupled with the bottom 50% paying 2.99%, equals 29.21% of individual income taxes collected in 2006 were paid by the 90% of all taxpayers.

Now you may think that earning $108,904.00 is the definition of rich, and for most of the country that may be true.. but regardless of that, they certainly pay far more proportion of the income tax collected by our government than any other group.

Further, the top 1% pays even more disproportionally than any other group because consider that in 2006 the total number of returns in the top 1% group was 1,357,192 paying 39.89% as opposed to the bottom 99% at 134,361,968 tax returns filed paid 60.11%

Break that down to each individual and you see that the top 1% paid on the average $300,893 per return as opposed to the bottom 99% paying an average of $4580 per return. So if you argue that the rich should pay more, I must argue back that they already are and that they have for far more years than visa-versa. If you doubt it, do the math.

Now perhaps contrary to the popular belief, I happen to know that most people in the top brackets don't mind paying income taxes but they do resent the notion that they don't pay their fair share. They also have a very healthy philosophy on the subject that probably all could remember: being that you don't pay taxes on earnings you don't make, paying taxes means that you made money and not lost it. Of course if we keep rewarding those that don't work with "refundable credits" we will increase the population that takes rather than pays and shift further the burden of tax paying on those that do work, regardless of where they are on the ladder.

Keep shifting that burden to the top and you have individuals as well as companies tempted and able to leave the country reducing the revenue to the country and creating a drop in the GDP as well that may never be recovered. Of course there's another more dangerous possibility that of creating another "tea party".

Thanks for Reading

Friday, February 20, 2009

Speaking of Taxes, Part II: It's Your Taxes

Did you know that in 2006 the IRS collected a RECORD (2nd year in a row) total tax revenue (individual and corporate) of $2,518,680,230,000? Did you really believe that we were in a recession when unemployement was at 4.4%? Can't collect record taxes unless there are record earnings.

Broken down that means that: Corporate revenues were $1,282,420,859,000 and Individual revenues were $1,236,259,371,000. Did you really believe that corporations don't pay any taxes?

Did you know that in 2006, 50% of all individual taxpayers paid 2.99% of total income tax revenue collected by IRS?

Which means, that 97.01% was paid by the other 50% or those earning AGI $31,987 or more;

And the top 10% earners, with minimum of AGI $108,904 earnings, paid 70.79% of the total collected individual income tax revenue.

Which means that those who paid 2.99% are totally beholden to those who paid the rest. So when those in the lower 50% who ask for more services, namely entitlements, handouts & credits, from the "the government" are really asking the other 50% to pay more taxes.

Which also means that your Representatives in Congress and your President who give and promise the entitlements, credits and services are demanding that the top 50% pay more.

Any questions?
Stand by for more ...

Thanks for Reading


Tuesday, February 17, 2009

Khrushchev Must Be Laughing

Today's signing of the Stimupork bill was nothing short of a spectacle drawn from the Soviet propaganda machine handbook.

From start to finish, the theatrics were all there, the urgent need to "save the economy and the USA" with this bill were reinforced yet again; as were the sweet misleading lies veiled in smiles. The only thing missing from the pomp and circumstance were the children greeting with flowers, and of course the never ending applause in full unison, but I'm sure they will include those next time.

The mutual adoration speeches were given along with the obligatory everyday "worker comrade", who in this case is a small business owner, willing to say whatever was in front of him in his fervent, adoring belief that it was all true. Just think of his disbelief that he even got to introduce the "man" himself! Imagine his proud moment while he advised us that his business and his workers will be saved because of this bill and how he will be able to hire many more workers as a result of this bill.

So what is this bill all about? Has he read the bill? Has anyone? CAN anyone read 1100 pages in four days and fully analyze it's content? Not even the Congress that put it together in committee could read it before they voted. In other words we have another almost trillion $ debt with no one knowing exactly how it will be distributed and repaid.

And everyone was smiling
All the while the markets were tanking.

And Khrushchev was laughing: "I told you so"!

Thanks for Reading

Monday, February 16, 2009

Don't Use the "C" Word

Chavez won dictatorship in Venezuela. Can the USA be far behind? Judging with what's happened last week in Congress, I'd say not. No one is alarmed.

Russia paid a visit couple of months back to them and probably trained Chavez well. They also played war games together with Cuba. No one is alarmed.

California Congresswoman Maxine Waters lets the cat out of the bag last year by slipping a threat to the oil company execs about nationalization which she is currently happy to extend to the banks. No one cares.

Senator Obama openly advocates the redistribution of wealth during his Presidential campaign and despite open debate on the subject. Everyone cheers.

Yet people say to me: "Don't use the C word." "People turn off to it." they tell me

I ask you.. if I don't use the "C" word now, when it is appropriate and when the system is just setting up and when I can still voice it out loud, then when can I?

Will I be able to use it during the night while you are being taken in for questioning?

Will I be able to use it when my children are around after they'd been indoctrinated at school to listen and let the teacher know what their parents are saying at home?

Will I be able to say it to any friends when we're together in a group without fear of one of them reporting me?

Will I be able to say it while I'm marched off to a re-education center?

As this government is setting up more and more social programs to control every aspect of your everyday life, you better start naming the unmentionable.. the very word you don't want me to use for fear of being called a .. what? Can they call me by any worse words than they already have during the past administration while they were setting up for this change?

Many don't and can't believe that it could happen in the USA but consider that this change has been happening slowly over the years and has not shown it's agenda blatantly until this past year. The subtle changes that have already occurred were easy to excuse until one realizes that they've already given more ground than necessary for the coup to be a success.

Thanks for Reading

Sunday, February 1, 2009

Bring It All Home Part II

That government is printing money at a record pace now is in the news, that they were printing money all along these past decades is somehow forgiven and forgotten. We have not arrived at this point in a heartbeat, we arrived here in a lifetime and all along we were feeling good about our lives not worrying about how and where without production, we could be so prosperous.

No many wanted to look at the truth as most still don't wish to acknowledge that no bailout will work. The only way we'll save ourselves is by again becoming self reliant. Folding up our sleeves and working to produce our own consumption and not waiting for the government to provide the jobs, because government will only get you into deeper debt.

We have to come to terms that we owe the world a great deal of money, just like they owed us after WWII, which many did not repay. We may not be so forgiven by the countries we borrowed from; In fact I will guarantee that our debt will not be forgiven because their own existence is dependent on us being able to consume and print more.

We have to come to terms with the fact that unless we educate our students to do other things besides service and business administration & law, we will continue to have to export jobs to countries and people willing to study engineering, science, mathematics and do labor. (Did you know that only about 10% of the current American student population is interested in those majors?) We also have to come to terms with the fact that labor unions can't hold companies hostage for a lifetime building their debt with crippling retirement benefits and demands that put them into bankruptcy.

We have to let go of sponsored retirement and health care benefits that just line the pockets of those in insurance and government and allow increasing costs from deep pockets all the while decreasing quality.

We have to come to realize that government sponsored help, be it welfare or benefits do nothing but produce dependence hence they cripple the very economy they are trying to save. No one wants to invest in dependence except your elected officials who depend on our dependence on government to be re-elected. Therefore, it's a losing proposition for anyone wishing to be independent because eventually the country runs out of money to support the dependents but of course along the way the economy has long been at a standstill. Besides which, companies run by government bureaucrats are not a compelling investement prospect.

In order to have a thriving economy you need independent people willing to make it on their own. The USA was build by people who took a great deal of pride and interest in taking care of themselves and as they did, they grew a country stronger than any other in history but somewhere along the way wishing for comfort and feeling entitled perhaps, we the people started to slack off and like in the days in Rome, decided that it was easier to import than to make. Draw your own conclusion where that led; like for Rome, too far an expansion, and home is soon forgotten.

There is no where in the Constitution of the USA that says it is up to the government to create jobs for you. Yet they all act as if that is the sole reason for their existence; alas it is however the very thing that will make you more dependent on them. In order to survive and become strong again, we have to kick their collective butts to stay out of our lives and our search for self determination.

Here is the definition for a word we all should remember every day; a word whose origin dates to around 1680: self-de⋅ter⋅mi⋅na⋅tion   –noun

1. determination by oneself or itself, without outside influence.

2. freedom to live as one chooses, or to act or decide without consulting another or others.

3. the determining by the people of the form their government shall have, without reference to the wishes of any other nation, esp. by people of a territory or former colony.

Pay attention especially to #3. I know it seems an impossible task, but it must be made a compelling task if we are to survive without being owned by and made slaves by our debt.

Thanks for reading.