Category Archives: Taxes

Taxes

2013 huge tax increases loom, Typical middle income family $2000 increase, Bush tax cuts not just for wealthy, Obama lies exposed, 90 percent of households tax increase

2013 huge tax increases loom, Typical middle income family $2000 increase, Bush tax cuts not just for wealthy, Obama lies exposed, 90 percent of households tax increase

“I would not increase taxes for middle class Americans and in fact I want to….provide a tax cut for people who are making $75,000 a year or less,” “For those folks, I want an offset on the payroll tax that would be worth as much as $1,000 for a family.”…Barack Obama March 27, 2008

“Obama’s completely disingenuous dodge on whether he would raise taxes during a time of economic slowdown is belied by his vote earlier this month,” “Obama’s claims to the contrary, his votes to raise taxes on people earning as little as $31,850 are straight from the Democrats’ tax-and-spend playbook.”…Alex Conant, RNC spokesman March 27, 2008

“It is time for the Obama campaign to retire this talking point, no matter how much it seems to resonate with voters. The financial crisis of 2008 stemmed from a variety of complex factors, in particular the bubble in housing prices and the rise of exotic financial instruments. Deregulation was certainly an important factor, but as the government commission concluded, the blame for that lies across administrations, not just in the last Republican one.
In any case, the Bush tax cuts belong at the bottom of the list — if at all. Moreover, it is rather strange for the campaign to cite as its source an article that, according to the author, does not support this assertion.”…Washington Post October 1, 2012

First of all, I would like to thank and congratulate the Washington Post for awarding Obama 3 Pinochios for blaming the Bush Tax Cuts for the economic crisis.

Second. As you will see below, the Bush tax cuts were not just for the wealthy.

From the Telegraph Herald October 2, 2012.

“Tax increase looms at year-end ‘fiscal cliff’

A typical family could see its taxes go up by $2,000 next year if lawmakers fail to renew cuts set to expire at the end of the year.”

“A typical middle-income family making $40,000 to $64,000 per year could see its taxes go up by $2,000 next year if lawmakers fail to renew a lengthy roster of tax cuts set to expire at the end of the year, according to a new report Monday

Taxpayers across the income spectrum would be hit with large tax hikes, the Tax Policy Center said in its study, with households in the top 1 percent income range seeing an average tax increase of more than $120,000, while a family making between $110,000 to $140,000 could see a tax hike in the $6,000 range.

Taxpayers across the income spectrum will get slammed with increases totaling more than $500 billion — a more than 20 percent increase — with nine out of 10 households being affected by the expiration of tax cuts enacted under both President Obama and his predecessor, George W. Bush.

The expiring provisions include Bush-era cuts on wage and investment income and cuts for married couples and families with children, among others. Also expiring is a 2 percentage point temporary payroll tax cut championed by Obama.

The looming expiration of the large roster of tax cuts is one of the issues confronting voters in November, with the chief difference between Obama and GOP candidate Mitt Romney being the tax treatment of wealthier earners. Obama is calling for permitting rates on individual income exceeding $200,000 and family incoming over $250,000 to go back to Clinton-era rates of as much as 39.6 percent.

Both candidates call for rewriting the tax code next year, but any such effort promises to be difficult and could take considerable time.

Monday’s study, by the independent Tax Policy Center, deals with the immediate increases set to slap taxpayers in January under the existing framework of the tax code.

Few are talking of renewing Obama’s payroll tax cut, even though that would mean a tax increase for working people. Working families with modest incomes would be hit hard as the child tax credit would shrink from a maximum of $1,000 per child to $500.

As a result, a married couple earning $50,000 with three dependent children that currently receives an almost $1,500 income tax refund largely due to the child tax credit would see their fortunes reversed by more than $3,000 next year and pay more than $1,500 in income taxes while seeing their payroll taxes go up by $1,000 if the full menu of tax cuts expire.

Economists warn that the looming tax hikes, combined with $109 billion in automatic spending cuts scheduled to take effect in January, could throw the fragile economy back into recession if Washington doesn’t act. The automatic spending cuts are coming due because of the failure of last year’s deficit “supercommittee” to strike a bargain.

The combination of the sharp tax hikes and spending cuts has been dubbed a “fiscal cliff.”

“The fiscal cliff threatens an unprecedented tax increase at year end,” says the report. “Taxes would rise by more than $500 billion in 2013 — an average of almost $3,500 per household — as almost every tax cuts enacted since 2001 would expire.”

Cumulatively, the country would see a 5 percentage point jump in its average tax rate, which works out to taxes on the top 1 percent jumping by more than 7 percentage points and about 4 percentage points for most people earning below $100,000 per year.

Put another way, people in the $40,000-$64,000 income range would see their average federal tax rate jump from 14 percent to 17.8 percent — or an increase in their overall federal bill of 27 percent.

All told, almost 90 percent of all households would face a tax increase, though the top 20 percent of earners would bear 60 percent of the overall cost. Across all households the tax increases would average almost $3,500.

The expiration of cuts on capital gains and stock dividends is a key reason why wealthier people would see a higher increase in their tax burdens.

Republicans controlling the House have also called for the expiration of Obama-backed tax cuts for the working poor, including expansions of the earned income and child tax credits.

But all sides are calling for the renewal of Bush-era tax rates for everyone else. Without a renewal of those rates, a married couple would pay a 28 percent rate on taxable income exceeding $72,300 instead of the 25 percent rate they now pay. And the 10 percent rate paid on the first $8,900 of income would jump to 15 percent.

The new top rate of 39.6 percent would kick in for income over $397,000. The current top rate is 35 percent rate.

The Tax Policy Center is a joint project of the Urban Institute and the Brookings Institution.”

http://www.thonline.com/news/national_world/article_19fc291b-ce3c-5667-ad9b-875019eeac09.html

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Senators Burr and Coburn Press Conference, February 16, 2012, Plan to Save Medicare, Immediate and long term reforms based on choice and sustainability

Senators Burr and Coburn Press Conference, February 16, 2012, Plan to Save Medicare, Immediate and long term reforms based on choice and sustainability

From the office of NC Senator Richard Burr, February 15, 2012.

United States Senator ∙ North CarolinaRichard Burr

217 Russell Senate Office Bldg. ∙ Washington, D.C. 20510

(202) 224-3154 ∙ FAX (202) 228-2981

http://www.burr.senate.gov

 

MEDIA ADVISORY: Senators Burr and Coburn to Hold Press Conference Unveiling Plan to Save Medicare

FOR IMMEDIATE RELEASEWednesday, February 15, 2012 CONTACT:  David Ward (Burr) – (202) 228-1616John Hart (Coburn) – (202) 228-5357

WASHINGTON, D.C. – U.S. Senators Richard Burr (R-NC) and Tom Coburn, M.D. (R-OK) will hold a press conference on Thursday, February 16th at 12:30 p.m. to introduce the “Seniors’ Choice Act”, a proposal to save Medicare from insolvency through immediate and long-term reforms based on choice and sustainability.

WHAT:                 Coburn-Burr Medicare Reform Proposal

 

WHERE:               Senate Radio/TV gallery S-325

 

WHEN:                 Thursday, February 16 at 12:30 p.m.

Obama lies don’t add up, Real unemployment rate, CBO forcasts over 8 percent through 2013, 12.8 million unemployed, 43 percent jobless more than six months

Obama lies don’t add up, Real unemployment rate, CBO forcasts over 8 percent through 2013, 12.8 million unemployed, 43 percent jobless more than six months

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984”

“As soon as all the corrections which happened to be necessary in any partiucular number of the Times had been assembled and collated, that number would be reprinted, the original copy destroyed, and the corrected copy placed on the files in it’s stead. This process of continuation alteration was applied not only to newspapers, but to books, periodicals, pamphlets, posters, leaflets, films, sound tracks, cartoons, photographs–to every kind of literature or documentation which might conceivably hold any political or ideological significance. Day by day and almost minute by minute the past was brought up to date. In this way every prediction made by the Party could be shown by documentary evidence to be correct; nor was any item of news, or expression of opinion, which conflicted with the needs of the moment, ever allowed to be on record.”…George Orwell, “1984″ 

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

From the CBO January 2012.
“THE ECONOMIC OUTLOOK

In part because of the dampening effect of the higher tax rates and curbs on spending scheduled to occur this year and next, CBO expects that the economy will continue to recover slowly, with real GDP growing by 2.0 percent this year and 1.1 percent next year (as measured by the change from the fourth quarter of the previous calendar year). CBO expects economic activity to quicken after 2013 but to remain below the economy’s potential until 2018.

In CBO’s forecast, the unemployment rate remains above 8 percent both this year and next, a consequence of continued weakness in demand for goods and services. As economic growth picks up after 2013, the unemployment rate will gradually decline to around 7 percent by the end of 2015, before dropping to near 5½ percent by the end of 2017.”

http://www.cbo.gov/doc.cfm?index=12699

From Ezra Klein of the Washington Post February 1, 2012.

“Is the ‘real’ unemployment rate stuck?”
Back in December, the Financial Times’s Ed Luce estimated that “if the same number of people were seeking work today as in 2007, the jobless rate would be 11 percent.” Perhaps, many of us wrote at the time, that should be considered the “real” unemployment rate.

Today, Cardiff Garcia notes an unsettling chart from Nomura that compares the unemployment rate we have, where people can drop out of the labor force and thus out of the numbers, to this “real” unemployment rate, where discouraged workers aren’t dropped from the rolls. Worryingly, it’s barely moved:”

“What is striking about the broken line above isn’t where it now ends — at 10.3 per cent — but rather the lack of any meaningful, sustained improvement for more than two years,” comments Garcia. “This alternative measure has remained above 10 percent since September 2009, and aside from a bit of skittishness (some of which is down to uncaptured seasonality) has mostly just moved sideways.”

http://www.washingtonpost.com/blogs/ezra-klein/post/is-the-real-unemployment-rate-stuck/2011/08/25/gIQAVyiTiQ_blog.html

From Cal Thomas February 08, 2012.

“The Obama administration is touting the latest unemployment numbers released last week”

“The Obama administration is touting the latest unemployment numbers released last week by the U.S. Department of Labor as proof its policies are working. But a closer look at the actual number of able-bodied people who are willing to work, but do not, reveals a different picture.

As economist John R. Lott has written, not only is the drop in the unemployment rate from 8.5 percent to 8.3 percent still half a percentage point higher than when President Obama took office three years ago, the number of unemployed is also higher. Compared with January 2009 when 11.6 million Americans were jobless, today, writes Lott, “there are 12.8 million unemployed and 43 percent have been out of a job for more than six months. The average length of unemployment has increased dramatically since the recovery started. Back in June 2009, ‘only’ 29 percent of the unemployed had been unemployed longer than six months.”

The way government counts things, slower growth in government spending amounts to a cut. In a similar, misleading fashion, a reduction in the percentage of unemployed people by two-tenths of 1 percent counts as progress, even if it results from wide-scale work force dropout.

Lott examined the Labor Department’s statistics and found that the number of Americans not in the labor force — neither working nor seeking work — grew and was revised upward last month by 1.2 million. Most people who join this category have given up looking for work and are no longer counted as unemployed. That fact skews the statistics to make the employment picture appear better than it is.

Real unemployment is mostly ignored by the major media, which was happy to tout the latest jobless rate reduction as a boon to Obama and a problem for Republican front-runner Mitt Romney. Most reporting has focused on the impression voters might have of an economic recovery, or at least trending in the right direction. The opposite is true and it is up to Romney to make that case.”

“Many in the major media can’t be counted on to tell the truth about the economy if doing so makes Obama and his policies look bad. This means the Republican nominee will have to go over or around the media to make his case. The best way to do this is not with statistics, but with real people.”

“Featuring real people who are out of a job and desperately want to work would help undermine the Democrats as the party of compassion, while simultaneously blunting the Republican stereotype as the party that doesn’t care about the poor.

Democrats seem eager to get more people onto food stamps than to adopt policies that would free them from addiction to government and give them the dignity of a real job and the self-sufficiency that goes with it.”

http://www.calthomas.com/index.php?news=3477

 

Obama tax lies, Jobs speech, Warren Buffett hypocrisy, Tax Policy Center 46 percent pay no federal income taxes

Obama tax lies, Jobs speech, Warren Buffett hypocrisy, Tax Policy Center 46 percent pay no federal income taxes

From the Chicago Tribune September 20, 2011.

“Data: The rich actually do pay more taxes”

“President Barack Obama makes it sound as if there are millionaires all
over America paying taxes at lower rates than their secretaries.

“Middle-class families shouldn’t pay higher taxes than millionaires
and billionaires,” Obama said Monday. “That’s pretty straightforward.
It’s hard to argue against that.”
The data tell a different story. On average, the wealthiest people in
America pay a lot more taxes than the middle class or the poor,
according to private and government data. They pay at a higher rate,
and as a group, they contribute a much larger share of the overall
taxes collected by the federal government.

There may be individual millionaires who pay taxes at rates lower than
middle-income workers. In 2009, 1,470 households filed tax returns
with incomes above $1 million yet paid no federal income tax,
according to the Internal Revenue Service. That, however, was less
than 1 percent of the nearly 237,000 returns with incomes above $1
million.

In his White House address Monday, Obama called on Congress to
increase taxes by $1.5 trillion as part of a 10-year deficit reduction
package totaling more than $3 trillion. He proposed that Congress
overhaul the tax code and impose what he called the “Buffett rule,”
named for billionaire investor Warren Buffett.

The rule says, “People making more than $1 million a year should not
pay a smaller share of their income in taxes than middle-class
families pay.”

“Warren Buffett’s secretary shouldn’t pay a higher tax rate than
Warren Buffett. There is no justification for it,” Obama said. “It is
wrong that in the United States of America, a teacher or a nurse or a
construction worker who earns $50,000 should pay higher tax rates than
somebody pulling in $50 million.”

Buffett wrote in a recent piece for The New York Times that the tax
rate he paid last year was lower than that paid by any of the other 20
people in his office.

This year, households making more than $1 million will pay an average
of 29.1 percent of their income in federal taxes, including income
taxes and payroll taxes, according to the Tax Policy Center, a
Washington think tank.”

“The Tax Policy Center estimates that 46 percent of households, mostly
low- and medium-income households, will pay no federal income taxes
this year. Most, however, will pay other taxes, including Social
Security payroll taxes.”

Read more:

http://www.chicagotribune.com/business/breaking/chi-data-the-rich-actually-do-pay-more-taxes-20110920,0,3645513.story

Hypocrisy from Obama and Warren Buffett.

From The Blaze August 30, 2011.

“How Much is Buffett’s Berkshire Hathaway Back-Tax Bill Exactly? About $1 Billion”

“On Monday, The Blaze reported that Warren Buffett’s company, Berkshire Hathaway, owes back taxes dating to 2002. The news is significant because in a recent op-ed column for the New York Times, Buffett, one of President Obama’s staunchest supporters, stated that, to now, the “super wealthy” have been coddled and deserve to be taxed at an even higher rate than they currently are.

When Buffett made his revelation earlier in the month, most assumed his company was up-t0-date on its taxes. That assumption has turned out to be incorrect, however — and to a substantial degree perhaps.

According to Berkshire’s 2010 annual report, the company has been in a near decade-long struggle with the IRS over its own taxes. Using public documents, a certified public accountant detailed Berkshire’s tax problems to Americans for Limited Government researcher Richard McCarty, revealing the damage could be close to $1 billion. Netright Daily adds:

According to page 56 of the company report, “At December 31, 2010… net unrecognized tax benefits were $1,005 million”, or about $1 billion. McCarty explained, “Unrecognized tax benefits represent the company’s potential future obligation to the IRS and other taxing authorities.  They have to be recorded in the company’s financial statements.”

He added, “The notation means that Berkshire Hathaway’s own auditors have probably said that $1 billion is more likely than not owed to the government.”

$1 billion is not an insignificant chunk of change, even for Buffett, representing about 0.2 percent of the company’s $372 billion in total assets.

The annual report goes on to state: “We anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (‘IRS’) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months. The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years.””

“Ironic, isn’t it? When Warren Buffett penned that op-ed demanding he be taxed more, we assumed that meant he had actually paid his taxes. Not quite the case. Buffett’s famed company, Berkshire Hathaway, owes taxes that are nearly a decade old.”

Read more:

http://www.theblaze.com/stories/how-much-is-buffetts-berkshire-hathaway-back-tax-bill-exactly-about-1-billion/

Obama bus tour spin, Everyone but Obama to blame, Spend more money, The more Obama speaks the worse the markets perform

Obama bus tour spin, Everyone but Obama to blame, Spend more money, The more Obama speaks the worse the markets perform

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

From the LA Times August 18, 2011.

“Obama’s bus tour themes: Washington (not him) really screwed up and we should spend a lot more”

“President Obama did some real good talking the last few days out there in Iowa and Minnesota and Illinois. Well, he did a lot of talking anyway.

He made it sound as if he’s been living in Peosta or Atkinson himself, the way he went on about all the misbehavior going on back there in Washington, D.C., where he has lived since January of 2005 and, since January of 2009, at taxpayer expense in the White House.

The way he described those D.C. political shenanigans, who would want to spend $745 million of someone else’s money to get there? Or $1 billion more to stay there? Or pay $37.1 million of others’ money to 464 aides to help him work there.

Here are a few things said by the Democrat who just spent weeks negotiating spending cuts. See if this sounds like a chastened spender whose credit rating just got downgraded:

When folks tell you that we’ve got a choice between jobs now or dealing with our debt crisis, they’re wrong. They’re wrong. We can’t afford to just do one or the other. We’ve got to do both….

We’ve got over $2 trillion worth of repairs that need to be made around the country, and I know there are some right here in this county and right here in this state. And we’ve got a lot of construction workers that are out of work when the housing bubble went bust, and interest rates are low, and contractors are ready to come in on time, under budget — this is a great time for us to rebuild our roads and our bridges, and locks in the Mississippi, and our seaports and our airports….

I think to myself, you know what, if folks in Washington were carrying out their responsibilities the way you’re carrying out your responsibilities, we’d be just fine. We would be just fine. (Applause.)…

Of course, those folks in Washington including him are not in Washington. Congress is on recess, the same time-off Obama will begin today on another island vacation.”

Read more:

http://latimesblogs.latimes.com/washington/2011/08/obama-bus-canada.html

Obama’s rhetoric is doing a good job of calming financial market fears.

Stock Indexes

Dow 11,046.60 -363.62 -3.19%
S&P 500 1,149.37 -44.52 -3.73%
Nasdaq 2,411.45 -100.03 -3.98%

From the US Labor Dept. today.

In the week ending August 13, the advance figure for seasonally adjusted initial claims was 408,000, an increase of 9,000 from the previous week’s revised figure of 399,000.

Austan Goolsbee Obama chief economic adviser leaving, Citizen Wells commenters on small business problems, Obama economic failures

Austan Goolsbee Obama chief economic adviser leaving, Citizen Wells commenters on small business problems, Obama economic failures

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

“Another liberal economic nut ‘quits’ his job to go back to teaching, because the economy isn’t better. This is nothing more than a manager firing his advisors because he made a horrible decision, based upon his beliefs and their recommendations. Sadly, it’s not like these ‘economic advisors’ get held accountable for poor decision making process and economic policies. No, they get to go back to their ‘teaching jobs’ so they can tell students how great they are and how it was all somebody else’s fault.”…commenter pete

“It’s easy to see why some businesses hire undocumented workers to avoid the tax burden. Or worse yet they just pick up stakes and move out of the country.
And now obamacare will tax us more? Our government’s over taxation and interference has caused small businesses to be reluctant to hire more employees. Under the Obama regime we’ll see businesses leaving the country droves. It is no wonder that our country’s economy is on a downward spiral”….commenter Jonah

Reported on Citizen Wells this morning.

“Most of the key economic indicators have worsened recently, the unemployment rate is back over 9 percent and there is increasing mention of the spectre of a depression.

From the Chicago Tribune June 6, 2011.

“Top Obama economic adviser, Austan Goolsbee, will quit to return to University of Chicago”

“Austan Goolsbee, President Barack Obama’s chief economic adviser, is leaving the administration and returning to the University of Chicago Booth School of Business to teach.

The announcement from the White House late Monday comes at a time when the U.S. unemployment rate is back above 9 percent, speculation is growing that the nation may be at risk of dipping back into a recession and amid intense political debate over whether to extend the nation’s debt ceiling,

Goolsbee began advising Obama before his election as president and has become the administration’s chief public spokesman on the economy. He has headed the White House Council of Economic Advisers for the past nine months. On ABC’s “This Week” program Sunday, Goolsbee emphasized that the administration had made progress on employment since the depths of the Great Recession and said “don’t make too much of any one jobs report.”

May’s unemployment rate, released last week, climbed to 9.1 percent. The stock market has been sliding recently on concerns about a slowing economy in the U.S. and globally.

Obama said in a statement, “Since I first ran for the U.S. Senate, Austan has been a close friend and one of my most trusted advisers. Over the past several years, he has helped steer our country out of the worst economic crisis since the Great Depression.”””

The following comments placed on that article are worthy of publishing:

Commenter pete:

CW,
Do you think that anyone has seen through the game. Another liberal economic nut ‘quits’ his job to go back to teaching, because the economy isn’t better. This is nothing more than a manager firing his advisors because he made a horrible decision, based upon his beliefs and their recommendations. Sadly, it’s not like these ‘economic advisors’ get held accountable for poor decision making process and economic policies. No, they get to go back to their ‘teaching jobs’ so they can tell students how great they are and how it was all somebody else’s fault.

From a small business perspective the problems are easy to see. Foremost, you have a bunch of idiots making the hiring of new employees and economic growth very risky. Obamacare, new regulations, unable to get loans and credit, inflation of goods costs, and bear marketplace all conspire to strike fear into employers. Second, customers are AFRAID. About 1/3 of americans see the Constitution (and rule of law) evaporating before their eyes for the first time in history, and they fear for the future. About 1/3 of Customers are oblivious to the politics, but have no jobs or real income and are underwater on their houses. About 1/3 are starting to believe that the government could default on SS and Medicare/Caid, as well as other entitlements which they are dependent upon. These factors lead to a loss of Consumer Confidence, and fewer and fewer exchanges, jobs, and tax revenue. By the way, even IF you succeed now, and make more than 250k in a year, create jobs, and help your local community, you will be saddled with 71% income tax next year. REALLY! 71%, you might as well make less and smell the roses, send some of your employees home.

What I’m trying to say, while out in the trenches of the small business world, is that Jimmy Carter II on Steroids, Barack Obama (or whatever his/her name is) is bad for small business. Small Business is the engine that runs the American Economy, and it hurting. The government bailouts…..none was targeted to growth of small business or small industry. The new regs and obamacare attack all industry , but are especially hard for small business to cope with because of limited resources.

Ronald Reagan understood america and small business contribution. His economics weren’t trickle down as much as they were designed to help the middle class businessman, the Job creator, to succeed. Obama economics are pumping trillions to the Bankers and the GM/GE of the world, which is truly a trickle down economics. Worse yet, that money just ends up overseas in the ‘global economy’ with job creation elsewhere.

Obama’s economics have struck at the heart of America by removing MIDDLE CLASS JOBS and therefore, the middle class. The liberals, whom pride themselves supposedly helping the poor and middle class, are hypocrites, as their policies actually make it worse for these people by depriving them of needed small business jobs and manufacturing. While people will start to get used to the ‘new economy’ of 8-12% unemployement, the government is going to run out of ‘other peoples money’ soon, and the other shoe is going to drop.

What I written above I believe with my very core, and since it is critical of Obama and his Fascist/Elitist policies, I suppose that makes me a racist. I have sensed an increase in attacks from the left wing nuts as the reality falls upon them that the ‘annointed one’ and his cronies are a lot of hot air and not of true real life tested ideas. Just like socialism I might add, lots of ‘utopia promised’ followed by lots of misery and failure.

Keyensian ecomomics doesn’t work when you don’t have a base of production and small business. Keyensian economics doesn’t work when the Government is not a moderator, but becomes the unchecked new predator (competing for business resources) in a delicate system of customer and business. The ‘brilliant’ economists that have ‘quit’ the Obama economic team obviously not as smart as they thought they were….perhaps we should call Obama’s Economics the ‘Audacity of Arrogance with Ignorance implemented with Inexperience’.

Sorry, done ranting for the morning, I gotta go back to work to try to keep my employees with jobs and pay for other peoples mortages.

Pete”

Commenter Jonah:

“Pete,

Our family has owned a business for almost 40 years. I started paying the bills for the business about 7 years ago and I was alarmed to learn the cost to run a business.

OUR SMALL BUSINESSES PAYS:
FEDERAL INCOME TAX
STATE INCOME TAX
FEDERAL UNEMPLOYMENT TAX
STATE UNEMPLOYMENT TAX
7% SOCIAL SECURITY TAX FOR EMPLOYEES
(this is in addition to the 7% the employee gives the government)
PROPERTY TAX
PERSONAL PROPERTY TAX
UTILITY TAXES ON GAS, ELECTRIC, AND PHONE
GASOLINE TAX
SALES TAX TO THE STATE FOR EVERYTHING WE SELL
APROXIMATELY 7% SALES TAX ON EVERYTHING WE BUY

PLUS WE PAY
MEDICAL INSURANCE
AUTO INSURANCE
PROPERTY INSURANCE
LIABILITY INSURANCE
WORKMAN’S COMP
VARIOUS LICENSES AND PERMITS
I’m sure I’ve forgotten a few things.

THE GOVERNMENT GETS MORE OF OUR MONEY THAN WE DO!

It’s easy to see why some businesses hire undocumented workers to avoid the tax burden. Or worse yet they just pick up stakes and move out of the country.

And now obamacare will tax us more? Our government’s over taxation and interference has caused small businesses to be reluctant to hire more employees. Under the Obama regime we’ll see businesses leaving the country droves. It is no wonder that our country’s economy is on a downward spiral.”

Taxes, Unemployment, Businesses don’t pay taxes people do, Citizen Wells open thread, October 18, 2010

Taxes, Unemployment, Businesses don’t pay taxes people do, Citizen Wells open thread, October 18, 2010

The far left, in ignorance, or as part of their agenda of the end justifies the means, perpetually bashes business and the so called fat cats. They believe that anyone making more money than they should pay more taxes. They believe that corporations are evil.

Here is the truth about taxing business and increased business expenses.
Rush Limbaugh, for many years has done an excellent job of explaining the impact of tax increases on American business and ultimately the American public. He explains that corporations do not pay taxes. This also includes non corporations, all business entities. This is the huge message that you never hear from the left, the business bashers. We already have a seious unemployment situation due to Obama and his far left socialists. I am concerned that tax hikes or hidden cost increases that will begin kicking in 2011, coupled with out of control government spending , will take us over the edge. Our new Congress will have to work fast to deactivate the tax and spend Health Care Legislation, cut taxes and provide a more business and jobs friendly envioronment.
 

Businesses ultimately do not pay taxes. Taxes become part of the cost of doing business. They are passed on to consumers and impact employment and the overall econo. When a business incurrs higher taxes or other increased costs, some combination of the following occurs:

  • The increased costs are passed along to consumers. This could be a local family run dairy farm. The cost increases are reflected in higher milk prices. When higher inheritance taxes are in effect, the children of the dairy farmers could be forced to shut down. That would, of course, diminish supply.
  • The increased costs prevent more hiring from occuring. The spectre of tax increases is causing that now.
  • The increased costs can lead to layoffs and schedule decreases. Our high unemployment rate is witness to that.
  • The increased costs can lead to pay freezes and pay cuts.
  • The increased costs prevent bussinesses from spending money on expansion and new technology, futher putting a damper on the economy.

And don’t forget, people with money start businesses. Questions they must ask are is it feasible, will it make money and where do I locate. Taxes always influnce those decisions.

So when you are encountered by a brain dead, far left sheeple, educate them on higher taxes and business bashing.