Archive for category Taxes
Clunker Drivers Have Been Bailed Out…Where’s The Outrage?
Posted by Scott in Entitlements, Gov't Spending, Taxes on August 29th, 2009
It was less than a year ago when Wall Street firms started seeing the first wave of government bailouts. Shortly thereafter the media and “Main Street” started crying about corporate excesses and greed. Those same people, however, are praising the “successes” of Cash For Clunkers; even advocating for a sequel Dollars For Dishwashers.
Why was Clunkers a success when the Wall Street bailouts were a miserable failure? Essentially they amounted to the same thing, the only difference was the recipients of our tax dollars. Where’s the outrage against those who were able to get a discount on their new automobile? Where’s the public disclosure (maybe a bumper sticker to thank the rest of us for their new purchase)?
Now I’m not trying to say that I agree with the Wall Street bailouts, because I don’t. I’m just trying to figure out how it’s OK to bailout one group of people and not another. The dollar amounts are irrelevant – the principle is the same.
After all, wouldn’t it just be easier (and more Constitutional) to simply not tax us as much? Lowering taxes for everyone across the board would not only help the auto industry and big Wall Street firms, it will also help every other industry. If everyone has more money to spend, they will spend it where they see fit. Whether that’s a new car, or a new dishwasher, the money will be spent, and the economy will eventually correct itself.
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Cash For Clunkers Thank You For Proving Our Point
Posted by Scott in Entitlements, Gov't Spending, Healthcare, Taxes on August 21st, 2009
For years, conservatives and liberals have clashed over taxes. Do we tax less, and allow the free market to thrive with the increased spending, or do we tax more to allow for an increase in government spending.
Cash For Clunkers has proven the conservative point of taxing less to benefit the economy, and here’s how.
Everyone, especially liberals are pointing out that one of the successes of Cash For Clunkers is that if you give people money, they will spend it. But why did the government have to place restrictions on how it could be spent? Had they simply not collected that $3 billion from the American taxpayer, we would have spent it as we saw fit to begin with.
Not only would people inevitably have purchased new (or even used cars), they also would have had additional money to pay for things like, gee I don’t know, maybe health care?
This leads me to another point. Cash For Clunkers was supposed to last until November. Whether it was the apparent “success” of the program, or the flaws in the paperwork processing that caused the program’s early departure, it was still cut short. What happens when the proposed universal health care ends up becoming too “successful” for its own good, or the inevitable mountains of paperwork become too much to handle? Are people going to be left waiting weeks or months for the treatment they desperately need (similar to the auto dealers waiting on payments they also desperately need)?
It’s time to see the light at the end of the government sponsored tunnel. More government involvement than is absolutely necessary in anything is never a good thing. And right now there is definitely far more than is necessary.
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Pay Your Taxes If You Have Political Ambitions
Before Timothy Geithner became the Treasury Secretary, he worked for the International Monetary Fund (IMF). The IMF employs people from all over the world, including Americans. While working there, foreigners don’t have to pay US income taxes, and in an attempt to be fair to the Americans who also work there, the IMF pays the Americans for their share of income taxes.
This doesn’t mean that Americans are exempt from paying taxes in the US. This is a minor detail that Timothy Geithner missed during his tenure with the IMF. Because of the fact that the IMF didn’t pay taxes on his behalf, he was considered an independent contractor, or self-employed. Under the US tax law there is a concept of self-employment taxes, where the individual is both the employer and the employee for all intents and purposes. This means that they have to pay the employer and employee portions of payroll taxes.
Not only didn’t Geithner pay his self-employment taxes, the IMF reimbursed him for what he should have paid had he been a law abiding citizen like the rest of us.
It turns out that this isn’t the last time that Secretary Geithner followed laws as if they were a suggestion, rather than the rule. Turns out that all of the bailout money being paid out by the billions is unconstitutional as well.
Article I Section 9 of the US Constitution states that “No money shall be drawn from the treasury, but in consequence of appropriations made by law…”. This isn’t just a minor point the founding fathers decided to throw into the Constitution.
Secretary Geithner got around this Constitutional issue when the Emergency Economic Stabilization Act of 2008 was passed. According to a report by the Congressional Budget Office, this established the Troubled Asset Relief Program, or TARP as it has become more popularly known. This authorized “the Treasury to purchase $700 billion in assets to alleviate the crisis in credit markets”.
Essentially, this gave him a blank check to hand out $700 billion to “stabilize” the economy. A stabilization effort, which will take years to pay back if any of the bailed out companies go under.
Isn’t it nice of him to hand out our taxpayer dollars when he isn’t even willing to pay his own fair share?
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Quit Bashing The Rich!
Posted by Scott in Entitlements, Taxes on April 15th, 2009
To all of you out there who think the rich are evil and need to be put in their place – STOP COMPLAINING!
You’re also probably complaining that they don’t pay their fair share of taxes. Since they make so much more than the average Joe out there, they should have to pay more, a lot more, right?
Well guess what? They are already! According to the Congressional Budget Office, in 2006 (the most recent year which data is available), the top 10% of households shared almost 73% of all individual income tax liabilities. The top 5% of households was over 60%, and the top 1% was over 39%.
Think about how fair that is.
If you were to go out to a fancy dinner with 10 friends, and the bill came to $1,000, would you have the person with the highest income pay $730 for his dinner, and split the remaining $270 among the 9 others? If you did, I’d bet that friend would find another group of people to go out to dinner with!
Then how is the current scaled tax system fair? Just because you don’t know the highest income earners personally, doesn’t make it right to stick them with the bill for your issues, does it? Think about the dinner example. Why should the rich person have to pay 73% of the bill if all he had was a salad, and everyone else got to eat steak?
Just some food for thought.
Source:
http://cbo.gov/publications/collections/tax/2009/tax_liability_shares.pdf
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Why do we Tax the Rich so Much?
Consider this:
• The top 1% of wage earners in this country pay over 33% of the total income tax collected;
• The top 5% pays over 53%;
• The top 10% pays about 65%;
• The top 25% pays about 83%, and;
• The top 50% pays 96% of the total income tax collected, leaving the bottom 50% to pick up the remaining 4%.
Next, consider what these tax dollars go to. A good portion goes to national security and the military, which benefits everyone equally, but another very large portion goes to entitlements, such as welfare and a multitude of other socialist programs. Now think about how disproportionate the costs (taxes) versus the benefits (entitlements) are. Seriously, how many multi-millionaires do you know who are on welfare?The Democrats will have you believe that taxing the rich more than the poor will ultimately benefit society, because the lower class will have more money. But think about it, when you start taxing the rich more, they will start to find tax shelters for their money, in an attempt to preserve the wealth that they have created for themselves. When their money gets tied up in these tax shelters, their level of investments decrease.
So what does this mean? Well, a few things.
First, a decrease in investments by wealthy investors means that they won’t receive any income from those investments. No income means no additional money to be taxed.
Secondly, when wealthy investors are less willing to invest in new companies, those companies usually will end up failing. Failing companies means lost jobs, which in turn means lost wages, ultimately leading to lost taxable income.
The point here is that we don’t want the wealthy to tie their money up in tax shelters. We want them to invest and buy things. We want them to buy their yachts, their luxury cars, their big houses and fancy clothes, because the production of those items requires the labor of less wealthy people. Without wealthy people buying these things, no one would be able to have a job. It’s the only way to keep the economy going.
Trust me, I’d love it if everyone in this country were wealthy, and never had to worry about money, but in a capitalistic society like ours, it just can’t happen. The wealthy will always depend on the lower classes for the products they produce, and the lower classes will always depend on the rich to buy their products. When the rich stop buying, the lower classes will always suffer.
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American Dream
The American Dream, as far as my research can tell, is a phrase first coined by James Truslow Adams in his book “Epic of America.” In his book he states “The American Dream is that dream of a land…with opportunity for each according to ability or achievement…It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of fortuitous circumstances of birth or position.” Even before Adams wrote this however, our Founding Fathers outlined the idea of an American Dream in the Declaration of Independence by writing “…that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are life, Liberty and the Pursuit of Happiness.”In Communist, or Socialist countries, the notion of this type of dream is unheard of, because in reality one’s ability is not praised in the same manner that it is in the American Dream. In those settings, if one person succeeds, they are succeeding for the entire community, not just themselves. This is unfortunate however, because it doesn’t encourage innovation or motivation for success, since the ones who succeed won’t reap the benefits anymore than their neighbors do.
So what does this have to do with the American Dream? There are many socialist laws in America that make it virtually impossible to live the American Dream, as was defined in “Epic of America” to its fullest extent. We think of this country as being such a great country where everyone is free, but in actuality we’re not. Social Security, Welfare and the multitude of other entitlement programs the government hands out goes against everything the American Dream stands for. How is one supposed to be “recognized by others for what they are” if they keep receiving government entitlements? Unless, of course they want to be recognized for being thieves or beggars, which I don’t think is what they were looking for.
U.S. tax laws are another socialistic way of “spreading the wealth” causing the rich to pay more than their fair share, and the poor to pay less. When it comes to be April 15th however, no one seems to notice too much because we pay our taxes on a pay as you earn basis, so most, if not all of our taxes are taken out before they’re even due, leaving us oblivious to the fact that the government has had the use of our money all year long. If we ever get the opportunity to keep what’s ours until April 15th, the government would never see a penny, because people would find it very difficult to fork over thousands of dollars in taxes all at once (a person who had taxable income of $144,500 last year would have to pay a total of $35,256 in taxes). With ridiculous amounts of our income being paid to the government, ridiculous amounts of unnecessary (and often unconstitutional) government programs begin to pop up, which in turn causes the government to want more and more of our hard earned money to fund these programs.
If all men truly are created equal, what happened between the time of their creation and the time they started receiving unearned government paychecks, or funding government programs? Our “Robin Hood” government seems to have taken away the equality, and forced the rich to fund the poor.
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