Lower Taxes Attract More People
Dec 22, 2010 Political
Some of the data for the last census has been released and the numbers are not good for Democrats. Red states picked up 6 Congressional seats and Blue States lost them. The interesting thing about the census is that states that have no income tax saw the largest increase in population:
This leads to a second point, which is that growth tends to be stronger where taxes are lower. Seven of the nine states that do not levy an income tax grew faster than the national average. The other two, South Dakota and New Hampshire, had the fastest growth in their regions, the Midwest and New England.
Altogether, 35 percent of the nation’s total population growth occurred in these nine non-taxing states, which accounted for just 19 percent of total population at the beginning of the decade. Michael Barone – Washington Examiner
People do not want to be taxed to death so they are moving to states where taxes are low or income is not taxed at all. People will only stand for so much before they take action. In this case, people voted with their feet.
This should be a lesson to politicians but they will fail to learn anything.
Taxes are a necessary evil but for a long time we have been taxed to pay for things that are not required to run our government and are not spelled out in the Constitution. When politicians learn to stop using the American public as an ATM machine and scale back government and its out of control spending then we will be able to prosper as a nation.
The idea that government must do everything for all people has failed in every society in which it has been tried.
We are on our way to that death spiral.
Cave Canem!
Never surrender, never submit.
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Tags: census, population shift, taxes, us constitution
Send In The Clown
Dec 10, 2010 Political
Barack Obama is having a hard time selling the tax rate extension bill that is being worked on because all during the campaign he promised to roll back the rates on the wealthiest Americans. He made that promise dozens of times and his base took him at his word (fools) so they are quite upset that Obama has gone back on what he promised.
Obama called in Bill Clinton to help with the hard sell on the tax rate extension. Notice I did not write tax cut because there are no tax cuts, only a tax increase. While tax rates will remain the same (not cut) the tax on estates will rise 35% which is a sin. People pay taxes on the money they earn all their lives and then when they die the government taxes the money again as it is passed to heirs. A blatant assault on people.
I would say that Obama called in the cavalry but Clinton dodged the draft and Obama never served so if they saw a bunch of men in cavalry uniforms riding on horses they would think it was a remake of Brokeback Mountain. No, Obama called in the clown.
Clinton campaigned for his wife and he opposed a lot of what Obama said he would do if elected. Clinton and his wife were opposed to many of Obama’s ideas though they both think that the tax rates for the rich should increase. Democrats like to pay for things with other people’s money. Case in point, Hillary still has unpaid campaign debt two years removed from the election. She keeps sending out pleas for donations to retire the debt. They could write a check to retire the debt and never miss the money. Or, to take the tact of the liberals, they can afford it.
Clinton told fellow Democrats that this was a good deal and he told them that cutting Social Security taxes would stimulate job growth. Why is it that Democrats discuss the benefits of tax cuts like Republicans but fail to embrace that idea on a full time basis? For what its worth, I do not think it is smart to cut Social Security taxes.
The Democrats are touting this as a tax cut but it is not. It is an extension of the current rates that were cut a decade ago. If cutting the Social Security tax by 2% will stimulate job growth imagine what cutting the tax rates lower than they are now would do. They could cut the tax rates 2% across the board and cut corporate taxes in half and, provided they were not temporary measures, the jobs would begin to be created by those who actually create them.
This deal is a bad one and I hope the Democrats kill it. I think that Republicans gave up too much in order to pass the tax rate extension and they could have done much better. Remember, this is not a tax cut. It is only an extension of the current rates. If they expire there will be further economic downturn and a double dip recession. In order to stimulate growth the current rates need to be cut.
No society EVER taxed its way to prosperity.
As for the Bill Clintons of the world who think they do not pay enough in taxes, nothing is stopping them from paying more. This link is provided for those wealthy Americans who feel they do not pay enough in taxes and that higher taxes will pay off the debt. The link goes directly to the Treasury site dedicated to taking donations to retire the debt.
So Bill Clinton, Warren Buffet and all the other wealthy folks who think they should pay more should feel free to step up and put their money where their mouth is.
Of course, Clinton won’t write a check to pay off his wife’s campaign debt so what makes anyone think he actually wants to pay more to the government?
That clown wants others to pay more and that is why he wants tax rates for the wealthy to increase. He, like all truly wealthy people, will find a way to avoid paying the taxes.
The people who are only considered wealthy in the twisted minds of those in the Democrat party will end up paying more.
Of course, government could do what one innovative town has. Steal money from people.
Cave Canem!
Never surrender, never submit.
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Rangel Mess Shows Congress Is Protected Class
Dec 3, 2010 Political
Before I start, let me say that I admire Charlie Rangel’s military service to this country. On 30 November, 1950 he and his unit were attacked by the Chinese while he was serving in the Korean War. Rangel was wounded but managed, as a Private, to take control of about 30 soldiers and get them to safety in freezing temperatures. His actions saved them from capture and likely saved their lives. He received several medals for his heroism and for that, this nation should be grateful.
But that does not negate the fact that over the years that Rangel has served in Congress he has done things that would get the average citizen thrown in jail.
Yesterday, Rangel was censured by the Congress, a punishment just below expulsion. Rangel was found guilty of nearly a dozen ethics violations including not paying taxes for a rental property. This is particularly bad because Rangel was in charge of the group responsible for our tax laws. It is not likely that Rangel will be prosecuted for failure to pay his taxes. He has already paid what was reported that he owed and the matter will be considered settled. If he were the average guy on the street, he would be in jail.
Even the not so average guys go to jail. Wesley Snipes, the actor, was sentenced to three years in jail for failure to pay his taxes. Snipes was led to believe that there was no compelling law that required him to pay the taxes so he didn’t. The fact that he paid $5 million dollars (of the $15 million he owed) did not sway a judge and he will serve three years.
What is the difference between what Snipes did and what Rangel did? Rangel knew the tax laws and did not pay his taxes. He claimed that it was a mistake and poor bookkeeping. Snipes was told by his tax advisers that he did not have to pay the taxes and he didn’t.
Both men were guilty of not paying their taxes but one of them had to face Congress and have his censure read aloud while the other will spend three years behind bars.
To top it off, Snipes has not been accused of any other wrongdoing.
Snipes was made an example. His jail time is a direct message to those who think there is no law compelling them to pay taxes. This is an intimidation tactic to get people who think the same thing to stop and think before they decide not to pay taxes.
There are obviously two sets of rules. One set for the members of Congress (and other top government officials) and one set for the rest of us. How many people in the Obama Administration alone were outed as tax evaders only to pay what they owed and move into high paying positions?
Rangel made a big show of his censure proceedings and asked others to vote for a lesser punishment. People have talked about the embarrassment of standing in the well of the House floor while the censure is read by the Speaker.
I bet if one were to ask Wesley Snipes which punishment he preferred he would gladly stand in the well of the House and have a censure read.
And you can bet Rangel prefers this to three years in jail.
You can bet they would both prefer the Tim Geithner resolution where they could apologize for the oversight, pay the back taxes (no interest or penalties) and then move on with their lives.
At 80 years of age it is time for Rangel to consider retiring and enjoying the rest of his life.
And it is time for Congress to have real oversight where members are held as accountable as the poorest person in the country.
Cave Canem!
Never surrender, never submit.
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Tags: charlie rangel, elites, jail, special treatment, taxes, wesley snipes
Whose Money Is It?
Nov 20, 2010 Political
The Bush tax cuts are set to expire and when they do taxes for everyone will go up. The Democrats failed to do anything about the issue prior to the election because they were worried that they might offend voters, not that it made any difference. Now it is up to the lame duck session of Congress to fix this problem before it goes into recess for the year. Taxes will already rise on 1 January because the information needed to accurately withhold taxes must be in early or pay systems can’t make the necessary changes.
So the Congress is supposedly working furiously to get this done. There is a sticking point. Obama and his leaders in Congress only want to extend the cuts for individuals making under $200,000 and joint filers under $250,000. Republicans (and some less senior Democrats) want to extend the cuts for everyone. Barack Obama is not on board with this idea:
Obama favors renewing the tax cuts only for those at or below those level, saying the nation cannot afford to renew them for wealthier Americans. al-Reuters
The nation cannot afford to renew them for the wealthier Americans? Whose money is it? Obama acts like the benevolent government was gracious and allowed people to keep more of what they make but now it is owed back. The reality is that the government takes our money regardless of what tax rate is used. IT TAKES OUR MONEY.
What does he mean we can’t afford it? Renewing the tax cuts will not add one dime of debt to the government because the rate will stay the same as it has been since the cuts took place. What Obama means is that government wants more money and allowing the cuts on the wealthy to expire will allow government to confiscate more.
The problem is not the amount of money the government gets in taxes. It gets plenty. The problem is that government keeps spending too much. It mismanages everything. Look at Social Security. Workers have paid into that system and the money was put into the general fund and spent. Now they want to raise SS taxes and increase the cap in order to afford the bill. In effect, we are paying for SS twice. We paid for it when the money was withheld and we now have to pay to make up for the misappropriation of what we paid in. If it had been put away we would have plenty to pay the bills.
No, Obama is a big government liberal and he wants more money and he will raise taxes on the wealthy to get it.
Perhaps he should learn what a balanced budget is and learn how to live within the government’s means.
We are not an ATM for the government.
Cave Canem!
Never surrender, never submit.
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Taxes Explained With Beer
Oct 10, 2010 Political
I got this in an email and it seems to sum things up nicely.
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.
If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would …pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. “Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20.” Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men – the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’
They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so: The fifth man, like the first four, now paid nothing (100% savings and his dollar was added to the wealthiest man’s bill).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $50 instead of $59 (15% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.
“I only got a dollar out of the $20,”declared the sixth man. He pointed to the tenth man,” but he got $9!”
“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got nine times more than I got”
“That’s true!!” shouted the seventh man. “Why should he get $9 back when I got only two? The wealthy get all the breaks!”
“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”
The nine men surrounded the tenth man and beat the hell out of him…
The next night the tenth man didn’t show up for drinks so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!
And that, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier…and who could blame them?
For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.
Big Dog salute to JP.
Cave Canem!
Never surrender, never submit.
[tip]If you enjoy what you read consider signing up to receive email notification of new posts. There are several options in the sidebar and I am sure you can find one that suits you. If you prefer, consider adding this site to your favorite feed reader. If you receive emails and wish to stop them follow the instructions included in the email.[/tip]