Top Of My Head

Thoughts on everything from Politics to Video Games

Tag: tax cuts (page 1 of 2)

Rich Men and Camels

I’ve been thinking about what Jesus said about it being easier for a camel to get through the eye of a needle than for a rich man to get into Heaven.  Why was Jesus harshing on rich guys so bad?  Is being rich inherently evil?

If you listen to these megachurch, superstar ministers; no – being rich isn’t evil and in fact, Jesus wants us all to be rich.  I don’t believe anyone who is preaching in a church the size of a stadium has a huge grasp on what Jesus wants.  However; I do believe that being rich doesn’t equate evil…

Unless…

If you have plenty and you don’t share – that’s evil.

If you pay your employees minimum wage — that’s evil.  The fact that we have to have a minimum wage is pretty evil.  Sure, there are some companies who pay fair wages, but there are a lot more companies who would pay less than livable wages if they could just get away with it.

If you don’t provide healthcare for your employees, evil.

We allow businesses – and, I’m talking about corporations, not the mom and pop small businessperson who is barely getting by – I mean the WalMarts, the WalGreens, the companies owned by the Koch brothers – anyway, we allow them to write a lot of expenses off their taxes.  I would like to suggest that we throw these complicated tax laws out.  We need to institute a new plan, so that corporations pay their fair share.  They benefit from our roads, bridges, military, police officers and fire fighters – schools train their next employees; but, when it comes to paying for all of this, well, they don’t want to.

They put out ads saying that it’s wealth distribution, but it’s not – it’s paying your fair share of what it costs, so you can run your business in the land of the free.

I say, we let them write off everything they pay their employees – no taxes on payroll, no taxes on healthcare costs — BUT, if that employee is outside the United States, we tax the hell out of whatever product they made when it gets shipped here.  (They would still have to pay their side of Social Security and Medicare.)

If we allowed companies to deduct the cost of employees, you can bet employees would go back to being well paid and important to companies – consider assets and not just cost centers.  Every tax break the upper 1% has received has not driven them to higher more employees – it’s just given them more to horde.

And, that’s why Jesus said, in a much more elegant way than I’m about to do so, that the rich ain’t getting into Heaven.  It’s all about how you treat others and the rich in this country, aren’t passing the camel test.

Ryan and Romney – We’re not telling

Paul Ryan announced that he and Mitt Romney will wait until they’re elected to tell us just what tax loopholes they plan on closing.  (See story here)  Really?

That’s like going to buy a car and having the dealer say, “This is a great car with a lot of features, but I’m not showing you any of them until you sign on the dotted line.”

Mitt Romney “was overheard telling supporters at a private fundraiser in Florida over the weekend that he might seek to limit tax deductions for mortgages”. (See story here)  Naturally, his campaign made him back away from this remark.

But, what exactly would Romney and Ryan cut to make up for the “$5 trillion in forgone revenue“.

Cheryl and I all ready pay thousand dollars in taxes higher than a couple is allowed to legally marry.  So, take away my mortgage deduction and I can kiss a lot more of my hard earned money to go up in smoke.  And, why should I vote for someone who won’t even tell me to my face that, yes, I’m taking away your largest deduction, so I can cut taxes on the ultra-rich?

I know a lot of people who are planning to vote for Romney and they’re going to be bitching if he runs and passes a radical tax law.

But, they will tell you a lot about their Medicare system.  Romney gave some details to reporters in Miami:

“My plan for Medicare is very similar to his plan for Medicare. My plan, like his, really expands Medicare Advantage. It says, let’s give people more opportunity to take advantage of not just the standard Medicare, but also the [private insurance] policies that are available in the market place.”

Get it? They want to privatize more Medicare, but they don’t want to tell you what tax deductions they’re ending. And, they send out their main man (John Sununu) to keep repeating the lie of the $716 billion Obama “gutted” from Medicare”.

Politics as Usual

I posted the picture from my blog about corporate taxes on Facebook.  I, then, shared a lot of feel good pictures.  Not so amazingly, the feel good pictures went on to be shared by my friends, while the picture of the widening gap between  Corporate taxes and Individual taxes went pretty much ignored.

I’ve created another picture and I hope that it gets passed around.

Moving on…

Included in the sad state of affairs, I posted on Twitter the following:

Republican: One who doesn’t want the government mandating that citizens buy health insurance, but sees no problem in deciding who can marry.

This posted to my Facebook account, as the two are linked. In response, I received this:

Democrat: one who does not care who or what you marry. As long as you are distracted enough for them to steal all your money and give it to someone who didn’t earn it.

Sad, isn’t it?

The idea that being a Democrat means you want to steal someone else’s money and give it away is the fallacy that the Republican Party promotes.  They’ve called earned programs, such as Social Security, entitlements.  They have distorted the Affordable Health Care Act so much that people don’t recognize the good things within it – such as mandating that health insurance companies spend at least 85% of premiums on health care and eliminating the pre-existing conditions.

 

Tax Receipts By Source 1934 – 2011

I saw the below image on Facebook.  It was posted by a group called the Other 98%.  I wanted to see, before I shared it, if it was true.  So, I went looking for the data.  I found a spreadsheet on The White House U.S. Office of Management and Budget. I didn’t find any data to support the picture, but I did find something else just as interesting.

$0.22 for every dollar paid by the American Worker.

Sad Tax Data

In 1934, the tax receipts totaled (not including Social Security)  $784 million dollars – 53.57% was Individual Income Taxes and 46.43% was Corporate Income Tax.  In 2011, the tax receipts totaled (not including Social Security) $1,272,558 million – 85.77% was made up from Individual Income Tax and only 14.23% came from Corporations.

I don’t believe they’re paying their fair share, do you?

 

Scott Walker’s Job Problem

According to a new Scott Walker Ad, he has created 33,000 jobs.  Boy, wouldn’t that be nice?  The fact is – he hasn’t.  Wisconsin still leads the US in job losses.  In fact, according to the BLS report, the state of Wisconsin is the ONLY state to show job losses over the past year.

Now, Politifact (a group with whom I normally agree) has rated a statement of Tom Barrett’s regarding the blame for the job losses as half true.  Barrett’s statement:

“Governor Walker has caused Wisconsin to lose more jobs than any other state in the country.”

PolitiFact says that, while Barrett’s numbers are correct – we have lost more jobs than any other state in the country – “there is no proof that the measures caused the job losses”.

That’s where I have a problem.  You see, 17,800 of the jobs lost were government jobs.  Walker’s policies and budget shredding caused the loss of more than half the jobs that were lost over the past year.  How can you say he isn’t to blame?

And, a political point I would like to add:  You can’t take the credit, if you’re going to sideswipe the blame.  In other words, while the rest of the country has seen an economic improvement, our state has not.  I don’t blame Walker for the economic downturn.  That would be like blaming President Obama for the economic downturn that happened before he came on board.  It is foolish.  However; while 49 states have seen their job numbers go up, our state has seen job losses – in the year that Walker has been in charge.  Sorry, dude, you have to shoulder the blame.

Scott Walker has spent more time making his rich backers happy. He’s been kissing the Koch brothers’ collective rears and he hasn’t been supporting the people of the great state of Wisconsin.  He took away collective bargaining rights for public employees and he has caused job losses of government employees.  We lost 6,100 private sector jobs.

Scott Walker and his policies are bad for Wisconsin.  Slashing budgets during a recession just makes the recession worst.  On June 5, we need to vote the boy out and put in a man who can get the job done.

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.

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.

373 – 1

373 – 1 => that’s the difference between your salary and the salary of the guy on top.  For every dollar you earn, a CEO is earning 373 dollars.  And, what do you get for that huge difference?

You get a boss who thinks you’re paid too much.

You get a boss who wants to raise profit margins and he does this by laying off your co-workers or even you.

You get a boss who is more than willing to move a factory overseas to save money, so he can make even more.

You get bad health insurance – if you have any health insurance at all.

You get to save for your own retirement out of the little bit of money that you have – and you get politicians that want to take away your safety net.

You get the feeling that you are expendable.

We could blame the government for our nation’s economic woes.  However; it isn’t entirely the government’s fault.  Greed is good, so the saying goes.  Except, greed is only good for those on top and it harms those of us on the bottom rung (and, even those of us a couple of rungs higher).

Perhaps, the government should take some, but not all, the blame.  It was the government that removed the financial regulations that had prevented a financial collapse for sixty years.  The free market system would work if only greed and the ever desire for higher and higher profit margins wasn’t part of the deal.  When men (and women) only concern themselves with profit and not sound business decisions, economic collapse ensues.

I’m not entirely sure what can completely fix our economy, but I can tell you what won’t and what hasn’t.  Lowering taxes even farther and ending financial (and other business) regulations are not going to put this great nation back on solid financial footing.  We need to put the Glass-Seagull act back into place to protect our financial markets.  And, we need to raise taxes on the upper classes.  The top limit needs to be moved back to 39%.

Ronald Reagan was correct to lower taxes in the eighties.  It was a good thing and it started economy recovery.  However; too much of a good thing can do us harm.  Our current economic status is proving just that.

You have been fooled…

If you’re even thinking for a second about voting for a Republican, then you are a fool.  You’ve been hoodwinked and you don’t even know it.  You don’t know enough about the history of this country to make a proper decision.  You don’t understand enough about economics, moral hazards and deregulation to make the right decision.

It’s not your fault.

For the last thirty + years in this country, we have been told over and over again that what is good for business is good for America.  You know, I feel sorry for Ronald Reagan.  By all accounts, he was a nice man.  Tip O’Neil and him would have beers in the White House after a hard day debating.  He was easy going, soft-spoken and he believed what he said.

But, he was wrong.

Let me explain business to you.  Business isn’t a game, Businesses are not people and they don’t give a damn about you, the environment or your children.  The men and women who run businesses could give a rat’s ass about you.  Sure, there are some few and far between exceptions, but they’re, well, few and far between.

People go into business for one reason: to make money.

That’s it – nothing more.

I love my job, but quite frankly, I am there for a paycheck and health benefits.  If I could support my family by not working, I would.  Don’t get me wrong, I really love what I do and I’m good at it – so I’m lucky, I work a job I actually love, but love doesn’t make the world go around – money does.

Continuing on, what caused the economic crisis cannot be summed up in just one sentence.  There are many factors – predatory lenders, housing bubble, too much credit to the wrong people, deregulation and the list goes on.  But, the jobless recovery?  That’s easy: Companies are making huge profits because they aren’t hiring you.  And, the companies that are hiring, are paying the lowest wages possible.

Because?

Well, it’s easy…Businesses want profits, the higher the profits; the better the business.  The stock market rewards the businesses with the highest profits, by keeping their stock prices high.

Somebody’s getting rich – it’s just not you.

The GOP wants to dismantle the rest of the regulations that keep us safe at work, that help the environment and keep our food safe.  The GOP wants to dismantle the safety nets for the people who do the real work – you and me.  They want to lower taxes on businesses, because they say that will cause businesses to start hiring.

It’s not true.

The GOP wants to continue their destruction of America.

Don’t let them.

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

© 2018 Top Of My Head

Theme by Anders NorenUp ↑