Top Of My Head

Thoughts on everything from Politics to Video Games

Tag: republicans (page 3 of 6)

Cain’s Tax Plan Again

When I’m wrong, I’ll admit that I am wrong. Apparently, I was wrong in my assumption regarding Cain’s 9-9-9 Tax Plan. There are some items that I overlooked – one of which was the fact that I would no longer pay Payroll taxes of 7.65%. This was pointed out by Bob – thanks, Bob. I dug a little further and discovered I would no longer have any deductions, except charitable and, since I don’t live in the inner city, I don’t receive a tax credit for that.

When I did my original comparison, I just took my salary – what I earn from my employer – and used those figures. I only used the standard deduction and the personal exemption for the current figures. For my spending, I went through the checkbook and took out all of my spending for the month of September.

Here’s what I did this time.

I’m used September’s figures for spending. I’m added in the Payroll taxes for both the current plan. I used my actual deductions – divided out by 12 – from my last year’s income tax return. Since Cain’s plan allows for charitable deductions, I subtracted my charitable deductions from his plan.

This time it worked out that I currently pay $2,890 more in taxes now than I would under Herman Cain’s plan. Since the only criteria I was using for this plan was how it would affect me – and only me – then I have to say, it is a good plan.

Sorry, but I do.

However; here’s what I wrote the last time:

Here’s what I recommend – don’t take my word on whether or not you like the Cain Plan. Do the math for yourself. Figure out exactly how much more or how much less you’ll pay in taxes. Come to your own conclusion. That’s what we should really be doing anyway. Checking out the plans and weighing our options.

I stand by that recommendation. You should figure out whether or not this is a good plan for you.  But, actually do the math and figure it out – don’t just guess or believe what someone else writes.  Too many people will believe whatever someone emails them.  Somedays, I wonder if laziness is the real reason we’re in this mess.

Now, that I have said that, a consideration should be made for whether or not this is a good plan for the country. I’m not sure that it is. Cain has stated that the country will gain more in revenue from this plan than we do currently. I just don’t see how that is possible. If I’m saving nearly $3,000 per year, shouldn’t everyone in my situation be saving that amount? Will we really gain enough on those people who will pay more to make up the difference for those who will pay less? It’s just a thought.

Republican Jobs Plan

Is it me?  Because I just don’t get it.  I don’t understand how the Republicans can keep coming back to the same old / same old and think that it will work.  Yes, Ronald Reagan cut taxes in 1981, but he raised government spending (and I’m really simplifying because monetary policy had a lot to do with the recovery).  The idea that the country can get our citizens back to work via lower tax rates and the reduction of government regulations is a one that is not based on any facts.

Here’s what drives companies to hire people – it’s simple, but true:  DEMAND.  That’s it, demand for a company’s good has to be high enough for the company to hire more people.  PERIOD.  If we’re not out purchasing Ding Dongs, the Ding Dong factory up the road is not going to hire more people.  It doesn’t matter how low a company’s taxes go, they’re NOT going to hire anyone they don’t actually need.

I don’t understand why it is that the Republicans in the Senate (led by John McCain) and the majority of the Republican Candidates for President do not understand the basics of economics.  And, actually, I do understand why Michele Bachmann doesn’t – the woman doesn’t know that Abraham Lincoln wasn’t a founding father and that Elvis is dead.  I understand why Rick Perry doesn’t get it – he’s a politician. But, Mitt Romney and Herman Cain are businessmen – Romney hasn’t been one for quite a while, but Cain did an impressive job turning around the Godfather’s Pizza business.

How can either one of them say, in all honesty, that they would hire someone they don’t need in a company just because taxes are low?

Why would anyone?

The truth is that consumers are tapped out.  I’m tapped out, you’re tapped out.  We’ve pretty much purchased everything we wanted in the last, say, twenty years.  I have a house.  I purchased two cars – one new, one used – within the past two years.  Other than buying some Christmas presents and a new cell phone, quite honestly, I’m done.  Finished.  There’s no more spending coming from my house.  It is time – and this is probably anti-Patriotic of me – to do some saving.

There’s a lot of people out there who are just like me.

So, how does the economy improve?

By the government spending, spending and spending some more.  I don’t like the concept, I don’t like the idea, but that’s what has to happen.  We can’t lay off 15,000 government workers in one state and expect that state’s economy to make any improvements.

We have been neglecting our infrastructure in this country for years.  Now is the time to fix the bridges, the roadways, the levees, our schools and whatever else needs fixing.  Now is the time for the government to spend.

There’s a balance that has to be met.  We can’t have too much government money pumped into the economy or it will push out private investment.  We need to find that balance.

But, we are not going to improve the economy by cutting more taxes and reducing even more regulations.  The Republicans need to start singing a new tune, because the economy can’t march to the one they’ve been singing.

Herman Cain’s 9-9-9 Tax Plan

When it comes to taxes and being told what’s going to cost me more money and what’s going to save me money, I generally don’t believe the Press, or the person touting the plan.  What I do believe is taking what I pay in taxes now and comparing that to the new plan.

This is what I did when comparing the “savings” Paul Ryan’s plan touted.  This is what I have done with Herman Cain’s plan.

Now, there is something I’d like to add.  Mr. Cain has not made public a lot of details about his plan.  It is possible that I am making incorrect assumptions.  I am listing the assumptions that I have made before the comparison – if anyone knows for a fact that the Cain plan doesn’t do any one of these, please leave a comment and I will make adjustments.

  • No deductions: personal exemption, neither Medical nor the Standard Deduction.
  • Taxes on everything: food, gas, clothing and bills such as electric and cable.
  • Even though when I purchase my next home or car – and only if Cain’s plan passes – I would pay a 9% sales tax on the home or car, I did not include this in my car payments, nor in my mortgage payments.  I made the assumption that the 9% tax would not be retroactive.  Therefore; in my total spending, I did not include my mortgage nor car payments.

I picked last month for my spending.  I figured September is a typical month for me.  Some months I might spend more and some months, I spend less.  For comparison purposes, I included Paul Ryan’s plan in my chart.

 

Current

Ryan’s Plan

Cain’s Plan

Salary

$5,416.67

$5,416.67

$5,416.67

Insurance Deduction

$253.44

$0.00

$0.00

Personal Exemption

$291.67

$316.67

$0.00

Standard Deduction

$483.33

$1,041.67

$0.00

Taxable Income

$4,388.23

$4,058.33

$5,416.67

Federal Income Tax

$784.18

$1,014.58

$487.50

National Sales Tax

$0.00

$0.00

$399.09

Total Tax

$784.18

$1,014.58

$886.59

%

17.87%

25.00%

9.00%

This is based on one month’s salary and all the spending for the household.  In the month of September between bills (cable, electric, cell phone, etc.), food, household items and misc. items (books, software), I spent $4,434.30.

As you can see, I currently pay – each month – $787.18 in Federal Income Tax (after deductions, which really aren’t taken out until the end of the year, but I wanted this to be a fair comparison – apples to apples).  Under the Cain Plan, I will only have $487.50 taken out of my paycheck for Federal Taxes.  That’s a savings of $299.68.  That sounds pretty good.

But, wait – there’s more…

Once the addition of the sales tax on $4,434.30 of goods and services is paid, my federal tax bill is raised by $399.09 – almost $100 more than the initial savings.  This brings my total taxes under Herman Cain’s plan up to $886.59!  Clearly, the Cain Plan is not a winner for me.

Let’s deal with the critics on this.  I’m sure some people are saying, “Just spend less.”  Hmmm, nice idea, but then what’s the point?  If, in order to save taxes, I slow down my spending, then for what am I working?  What’s my motivation for earning more money?  What do I get and how does the economy get rolling along if I cut my spending in half?

Let’s say I only spend the essentials – cut out the extras, like eating out or my passion for books – what happens then?

Well, I would save $52.80 in taxes each month.  And, sure, I could sock the extra money away in savings, but who wants to live like that?  I don’t drive up to Brookfield every single day to not enjoy the money I spend.  I sock away savings and money for retirement, but then I enjoy life.

And, how will I pay for that next car?  Sure, I could use my savings, but when the average car price is around $20,000 an extra 9.0% in sales tax is really going to make a huge difference.  That adds – without any other taxes or licensing fees – and extra $1,800 to the price of my new car.

Perhaps, Cain’s plan won’t take food or, maybe, cars will be exempt.  Wouldn’t that be subsidizing certain industries and isn’t that one of the ways we ended up in this mess in the first place?

Here’s what I recommend – don’t take my word on whether or not you like the Cain Plan.  Do the math for yourself.  Figure out exactly how much more or how much less you’ll pay in taxes.  Come to your own conclusion.  That’s what we should really be doing anyway.  Checking out the plans and weighing our options.

Happy Calculating!

Warren Buffet’s Tax Rate…

Warren Buffet released his 2010 taxes for Congress’s review.  He wanted to prove his point that the rich do not pay their fair share in taxes and that they can afford to pay more.  After comparing his tax return to my tax return, I so agree with him.  I earned .10% of what Mr. Buffet earned last year.  That means, for those of you who are math challenged, he earned 1,000 times as much as I did.

Now, if all is fair, then he should’ve paid 1,000 times more than I did in taxes.

Except, he didn’t.  Everything being equal, he should’ve paid $8 million in taxes.  He didn’t, he paid just under $7 million.  I can hear the argument now, that’s more than you paid.  If you don’t like it, why don’t you go get rich.  (Usually, these arguments come from people who make half as much as I do.)

How can a man who make 1,000 times more than me pay a tax rate that is only 2% higher than mine?  How is that fair?

Well, I have to go to work, where 1/3 of my paycheck goes to taxes and insurance before I even come home.

GOP Debate Audience Boos a Gay Soldier

There’s truly something wrong with an American – any American – that boos someone in the military.  Personally, I support their right to free speech, but do it in front of me and I’ll knock your block off.

At last night’s Republican debate, the audience did just that – they booed an American solider.  And, why did they do this?  Because he’s gay, like that gives them the right to be despicable human beings.

But, here’s the kicker – not one of the GOP Candidates for President stopped yakking their crap long enough to quiet the audience down.  Not one of them had the guts to say, “Hey, that’s a soldier, we don’t boo soldiers.”

PUSSIES – Every last stinking one of them.  Oh, they’ll stand up and thump their Bibles and wear their lapel flags, but they won’t really stand up for what’s right.  Michele Bachmann – that set of boobs with an empty head on top – will tell you no one should pay taxes, but she won’t stand up for someone who has served this country honorably.  Rick Santorum – there’s the boil on the butt of humanity – thinks that sexual orientation has to do with sex activity.  This brainac (and I mean that sarcastically) said:

I would say any type of sexual activity has absolutely no place in the military. The fact they are making a point to include it as a provision within the military that we are going to recognize a group of people and give them a special privilege to, and removing don’t ask don’t tell.

Special privilege? What an ass! Hey moron, it isn’t a special privilege to be able to be yourself without fear of losing your job.  I am completely out at work – probably one of the most out gays around – and it isn’t a special privilege.  It is my RIGHT as a God fearing, tax paying, American citizen to be able to go into work, do a good job and have no one complain because there is a picture of my beautiful wife on my desk.

The only thing this debate really proved is that there is a huge divide in this country: those who believe in the flag, the Constitution and Freedom and the other half are Republicans.

The GOP Way: Cutting Taxes on the Rich, Raising Taxes on the Middle Class

According to Huffington Post, the Republican Party is all for raising taxes on you and me.  Actually, I didn’t need to read the article to know that, they’ve been saying it all along.  Paul Ryan – who is unfortunately, my representative in Congress – called the other night with one of them recorded messages.  He stated, “I work for you.”  Really?  Because your roadmap for America plan makes it seem like you’re only working for the rich.

Pay attention, here’s where I’m going to do math.

Current Ryan’s Plan
Salary $1,250.00 $1,250.00
Medical $63.36 $63.36
Taxable Income $1,186.64 $1,250.00
Federal Income Tax $212.04 $312.50
% 17.87% 25.00%

Under Paul Ryan’s plan, health insurance would no longer be pre-taxed. Under his plan, any single making more that $50,000 per year would pay 25% in Federal Income tax. The tax rate for corporate America? 8%.

So, basically, Ryan and his Republican cronies will be financing this country on the backs of the single people.  A family of four can earn $39,000 without paying one penny in taxes, while us single people will only be able to earn $16,000 without paying taxes.  That means that I will end up paying more in taxes – a lot more.  Under Ryan’s plan, I will pay $12,250.00 in taxes.  Under our current tax structure (and using the standard deduction and personal excemption), I only pay $9,917.85.  That’s a difference of $2,332.15.

Anyone who is single, shouldn’t vote Republican.  It’ll cost you in the long run.

The HPV Vaccine – Colbert, Bachmann and Perry

This is a funny video and that’s all I’m going to say. No, wait – I think I will say more. Michele Bachmann is, perhaps, the scariest person on the planet, because she believes the crap she says. And, what she says is nothing but, well, crap.

This morning in Wisconsin

I just woke up this morning to learn that the Democrats only took two of the recall elections. With the whole nation watching, we handed the state right back to the extremists. Sadly, this is the state of our nation. The majority of the people no longer understand the basics of economics. They can no longer think for themselves. They honestly believe that cutting funds to education is better for the state. They’re so glued to their Fox News – which has the largest ratings of any news outlet – they believe what Fox says is true.

The people who believe in consensus. The people who believe in human rights. The people who believe that the rich aren’t paying their fair share. The people who realize that with the slow decline of unions, middle class wages have remained stagnant and will start a slow decline. The people who realize that We the people is becoming We the corporations. The people who can think for themselves and do not need a talking head to think for them. We are becoming and, we really are, the minority in this country.

It saddens me. Just because you’re a majority, doesn’t mean that you are right. For the first time in my adult life, I actually believe that America might just not bounce back. For the first time in my adult life, I am truly and honestly scared that America will fail. It’s really sad. I love my country, but I fear the extremists who are taking it over.

The Republican Plan

Rush Limbaugh – that moronic flab of hot air – says that the Republicans can’t compromise. Well, that’s just great. The Republicans should play to their fringe and not to common sense. Around half of our deficit problem is because of the tax cuts in 2001 and 2003. A quarter is because of two wars that we cannot afford. The government, despite my own comparison, cannot run like our household budgets. The government’s job to to provide for the general welfare of its people (see US Constitution) and if people aren’t going to eat because there aren’t any jobs, let the government spend the money.

Yes, we need to cut spending, but we need to raise taxes on the upper echelon of this country. If tax cuts create jobs, like the right wing keeps claiming, then where are they? The US Corporations are paying less in taxes now then since the 50’s (which, by the way, have a great economy). So, where are the jobs?

Limbaugh claims that the GOP won’t have a backbone if they compromise, well, Limbaugh wouldn’t know a backbone if it hit him in the face. None of these guys would. Having a backbone, manning up, this takes courage and it is easy for them not to compromise if that’s what the tea party wants. They’re bending to someone else’s will.

What shows a backbone is standing up for that which is right against those who disagree. If the Republicans said, look Obama has compromised on spending, so we’re going to give a little revenue – that would show some courage. Right now, they’re just thinking about their jobs and not the country.

We’ve been here before

It is amazing to me how history continues to repeat.  We – the collective we – fail to learn from the past.  Here we are, on the brink of defaulting on our loans, and the Republicans on standing on ideology instead of doing what is right for the country.  We may not be able to spend our way out of debt and we cannot tax cut our way out of debt.  However; the Republicans are too scared of making Obama look good and going against the Tea Partiers to do what is the right thing to do.

When we default next week, because the Republicans cannot and would not accept a very reasonable offer, don’t come crying to me.

Ironically, these “Republicans” claim to revere Ronald Reagan, yet Reagan raised the debt ceiling 18 times.  Despite the spin the right-wing talking heads want to put on it, he still – while saying he didn’t want to do so – raised taxes.

Older posts Newer posts

© 2020 Top Of My Head

Theme by Anders NorenUp ↑