Tag Archives: taxes

Happy 100th Birthday, Income Tax!

You know, I really wouldn’t mind paying taxes if they were used for education, infrastructure build, increased social programs and hiring more government works to do things like process VA claims applications….

I think it’s my civic duty.  It’s a close to tithing as I get….

I just hate that my tax dollars go to ridiculous and/or immoral things like unnecessary wars, oil company subsidies and Mitch McConnell’s salary….

From Daily Finance:

 

On Sunday, the Sixteenth Amendment, the one that laid the groundwork for a permanent federal income tax, celebrated its 100th birthday. Needless to say, not everybody was lining up to celebrate. In Forbes, wealth manager David Marotta used the anniversary as an opportunity to exhort readers to “Let the Income Tax Die at 100.” Meanwhile, over at The Global Dispatch, Robert Harriman paired anti-tax quotes from a trio of Founding Fathers with a pro-tax quote from Karl Marx.

Even the biggest fans of the income tax system are generally quick to admit that they don’t really like paying taxes, and some of its most furious foes have gone so far as to claim that the Sixteenth Amendment was never actually ratified. But whether you think federal income taxes are an unconstitutional power grab or, as Ray Raphael argued in Article 3, a natural progression from the property-based tax system that existed almost since the country’s founding, one thing is certain: If it weren’t for the federal tax system, America would never have been able to reach its current position in the world.

The interstate highway system that was key to America’s postwar dominance? Fully 90 percent of it was funded by federal income taxes. The space exploration program that put the American flag on the moon? That money came from income taxes, too. The same goes for the standing army, the EPA, the Food and Drug Administration, and hundreds of other programs, large and small, that help keep Americans healthy, educated, and protected. And, as we’ve seen recently, reduced tax revenue makes it much harder to keep those programs operating.

As for all those entitlement programs that have gotten so much criticism in recent years, they’re paid for through taxes as well. And, lest we wonder how Medicare and unemployment, WIC and student loan programs help keep America strong and safe, it’s worth remembering that a healthy, well-educated work force is the key to keeping — and, hopefully, strengthening — America’s place in the world.

via Happy 100th Birthday, Income Tax! – DailyFinance.

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Why Republicans Can’t Propose Spending Cuts

This article, in New York Magazine, is the best explanation I’ve seen yet for why the Republican’s can’t really offer serious ideas for spending cuts:  There really aren’t many options.

As usual, the GOP has based their case on illusions, untruths and sound bite cliches….

I’m a firm believer that the government actually needs to spend more on infrastructure and social programs.  The cuts should come from closing down George Bush’s wars of choice, unnecessary defense spending- that even the Pentagon says is unnecessary- and better management.

And, yes, raise the taxes on the rich and close loop holes that the rich and corporations use to avoid paying their fair share.  End subsidies to big oil and  corporate agribusiness.

The big opportunities are on the revenue side and with ending corporate welfare…..

From NY Magazine:

Republicans think government spending is huge, but they can’t really identify ways they want to solve that problem, because government spending is not really huge. That is to say, on top of an ideological gulf between the two parties, we have an epistemological gulf. The Republican understanding of government spending is based on hazy, abstract notions that don’t match reality and can’t be translated into a workable program.

Let’s unpack this a bit. We all know Republicans want to spend less money. So the  construction of the debate appears, on the surface, to be a pretty simple continuum based on policy preferences. Republicans like Mitch McConnell say government spending is “out of control” and would, at least ideally, like to bring it into line with revenue entirely through spending cuts. Democrats like Obama endorse a “balanced” solution with revenue and taxes. Right-thinking centrists, like the CEO community and their publicists like Mike Allen and Jim VandeHei, think we should cut deeply into entitlement spending while also raising tax revenue. (VandeHei, in a video accompanying his execrable story, asserts, “There’s money to be cut everywhere.”)

There really isn’t money to be cut everywhere. The United States spends way less money on social services than do other advanced countries, and even that low figure is inflated by our sky-high health-care prices. The retirement benefits to programs like Social Security are quite meager. Public infrastructure is grossly underfunded.

via Why Republicans Can’t Propose Spending Cuts — Daily Intelligencer.

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Buffett On Why Romney Should Pay Higher Taxes: He’s Just ‘Shoving Around Money,’ Not ‘Straining His Back’

I’ll keep saying it over and over:  There is no reason to vote for a Republican unless you are a millionaire only interested in trying to protect your own interests.

Here, American’s favorite Billionaire, calls Romney out on that point:

From ThinkProgress.org:

Last week, Mitt Romney finally admitted that he pays a tax rate of 15 percent, lower than that of many middle-class families. Romney is taxed at such a low rate because, as he freely admits, all of his income comes from investments, and is thus subject to the top capital gains tax rate of 15 percent, rather than the top income tax rate of 35 percent.

However, Romney has refused to sign on to the Obama administration’s “Buffett rule,” which aims to ensure that millionaires can’t dodge taxes to the extent that they’re paying less than teachers. Today, billionaire investor Warren Buffett himself was asked about Romney’s tax rate, replying that letting millionaire investors like Romney pay such low taxes is “the wrong policy” because he makes his income by just “shoving around money”:

He makes his money the same way I make my money. He makes money by moving around big bucks, not by straining his back and going to work cleaning the toilets or whatever it may be. He makes it shoving around money. I make it shoving around money. If you look at the 400 highest incomes in the United States, they average $220 million. Something like 90 of them are effectively unemployed. They have no earned income, and that number has gone up over the years. […]

It’s the wrong policy to have. Nothing wrong about [Romney] doing that. He will not pay more than the law requires. I don’t fault him for that in the least, but I do fault the law that allows him and me, earning enormous sums to pay over all federal taxes at a rate that is about half what the average person in my office pays.

via Buffett On Why Romney Should Pay Higher Taxes: He’s Just ‘Shoving Around Money,’ Not ‘Straining His Back’ | ThinkProgress.

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Wall Street Transaction Tax Would Raise $350 Billion

This makes way too much sense to ever become law….

This is not aimed at true investors, but rather at the Market manipulators who treat Wall Street much the way other gamblers treat Las Vegas…

Unfortunately, these same people, who would pay this miniscule tax, now own most of our Senators and Congressmen.  Therefore, they will say it’s better to cut Medicaid, Medicare and Social Security than to implement this transaction tax….

 

A minuscule tax on financial transactions proposed by congressional Democrats would raise more than $350 billion over the next nine years, according to an analysis by the Joint Tax Committee, a nonpartisan congressional scorekeeping panel.

The analysis was sent Monday to the offices of Sen. Tom Harkin (D-Iowa) and Rep. Peter DeFazio (D-Ore.), the lawmakers who proposed the tax, and provided to The Huffington Post.

The Wall Street Trading and Speculators Tax Act would impose a tax of 0.03 percent on financial transactions, meaning that longterm investors would barely notice it, but traders who move rapidly in and out of positions would feel its sting and, the authors hope, reduce the volume of their speculation in response.

via Wall Street Transaction Tax Would Raise $350 Billion.

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Rick Perry On Increasing Income Inequality: ‘I Don’t Care About That’

Well, this shouldn’t be news to anyone….

Because:

a)  We all knew Governor GoodHair was an Airheaded Ex-Cheerleader just like George W Bush- but with worse grades at a worse school and an even meaner disposition.

b) Everyone should know by now the entire GOP- and some of the Dems- are bought and paid for by the Corporations and the Rich.  They are just starting to be honest about it….

c)  “I Don’t Care” should be the Republican Party’s  Campaign Slogan for 2012.  The Rickster is just ahead of the curve on messaging.

 

From The Huffington Post:

 

Republican presidential candidate Rick Perry says he wants a huge tax break for the rich, and he doesn’t care what it means for income inequality.

Rick Perry announced on Tuesday that if elected president he would slash the corporate tax rate to 20 percent from 35 and give everyone the option of paying a flat income tax rate of 20 percent.

He also would try to encourage U.S. companies who have stored $1.4 trillion overseas to move their profits back to the United States by allowing them to pay 5.25 percent in taxes at first, according to Reuters.

The plan, if enacted, would dramatically reduce the tax burdens of the wealthiest people in the United States, saving millions of dollars for some, while raising taxes for poor and middle-class people who opt into the plan.

“I don’t care about that,” Perry said of the increased economic inequality that would result from the tax plan in an interview with The New York Times. “If that’s what comes, I’ll take that criticism.”

via Rick Perry On Increasing Income Inequality: ‘I Don’t Care About That’.

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Bill O’Reilly Threatens To Quit His Show If Obama Raises His Taxes

Another big reason to support President Obama’s economic and tax proposals…

From HuffingtonPost.com:

Bill O’Reilly threatened to quit his show if President Obama raised his taxes.

Speaking on his Monday show, O’Reilly delivered a stinging rebuttal to Obama’s speech from earlier in the day. In that speech, Obama introduced his so-called “Buffett Rule” and said that the rich should pay more in taxes. This did not sit well with O’Reilly, who accused Obama of using misleading statistics and of endangering the business climate.

He used himself as an example, saying that he could not ensure his continued tenure on Fox News if his taxes were raised to 50 percent.

“My corporations employ scores of people,” he said. “They depend on me to do what I do so they can make a nice salary. If Barack Obama begins taxing me more than 50 percent, which is very possible, I don’t know how much longer I’m going to do this. I like my job, but there comes a point when taxation becomes oppressive. Is the country really entitled to half a person’s income?”

Of course, if O’Reilly were to leave his show, he might cease to become someone with, in his words, “more power than anybody other than the president.”

WATCH:

via Bill O’Reilly Threatens To Quit His Show If Obama Raises His Taxes (VIDEO).

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John Fleming, GOP Congressman, Blasts Obama Over Buffett Rule: I Can’t Afford A Tax Hike

Poor baby….

Just scraping by on $400k a year….

After deductions, I’m sure….

 

Rep. John Fleming (R-La.) appeared on MSNBC Monday morning to express opposition to President Barack Obama’s deficit reduction plan, which includes a proposal to raise taxes on the wealthy.

Fleming charged that the plan is a terrible idea which kills jobs provided by wealthy “job creators” who pay personal income taxes. When asked about his business ventures — including his role in a number of Subway restaurants and UPS stores — from which he earned $6.3 million last year, Fleming told MSNBC host Chris Jansing that his business expenses left him with little to tax “by the time I feed my family.”

Fleming told Jansing that the $6.3 million is “before you pay 500 employees, you pay rent, you pay equipment and food.”

“The actual net income of that was a mere fraction of that amount.”

“By the time I feed my family, I have maybe $400,000 left over,” Fleming said.

via John Fleming, GOP Congressman, Blasts Obama Over Buffett Rule: I Can’t Afford A Tax Hike.

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France Introduces New Tax on High Incomes- At the Request of the Rich

Another reason to love the French…

This is an example of how you should handle deficits- both as a government and as a citizen.

This U.S. Congress is doing all it can to protect its millionaires from paying their fair share while taking more and more from the Middle Class and the poor.

The French also know a little bit about how nasty class warfare can become when the Rich have too much and flaunt it too openly.  They learned the hard way, it’s best to all pull together in the spirit of equality and solidarity.

I don’t want to hear a damn thing about “freedom fries”….

Viva la France!

 

 

The French government is to impose an extra tax of 3% on annual income above 500,000 euros (£440,000; $721,000).

It is part of a package of measures to try to cut the country’s deficit by 12bn euros over two years.

The tax increase came after some of France’s wealthiest people had called on the government to tackle its deficit by raising taxes on the rich.

Paris has also reduced its economic growth forecast for 2012 to 1.75% from a previous 2.25%.

‘Rigorous’

And it has cut its 2011 growth forecast from 2% to 1.75%, Prime Minister Francois Fillon has said.

He said the new tax would remain in place until France reduces its budget deficit back under the EU’s intended limit of 3% of GDP, which should occur in 2013.

France plans to trim its public deficit to 5.7 % this year, 4.6 % next year and 3% in 2013.

“This is a rigorous policy that will allow France to remain relaxed,” Mr Fillon said. “Our country must stick to its [deficit] commitments. It’s in the interest of all French people.”

Faced with flat growth, the persistent threat to the country’s precious AAA rating, and all sorts of turmoil on the nervous financial markets, President Sarkozy is wielding the axe.

In total he’s proposing 12bn euros of savings over the next two years.

Higher taxes for big companies, a cap on tax deductions applying to overtime – and a new “special contribution” from the wealthiest in the country.

It’s a U-turn – in so many ways – designed to reassure investors and voters alike that only he can be trusted with the French economy.

Sixteen executives, including Europe’s richest woman, the L’Oreal heiress Liliane Bettencourt, had offered in an open letter to pay a “special contribution” in a spirit of “solidarity”.

It appeared on the website of the French magazine Le Nouvel Observateur.

It was signed by some of France’s most high-profile chief executives, including Christophe de Margerie of oil firm Total, Frederic Oudea of bank Societe Generale, and Air France’s Jean-Cyril Spinetta.

They said: “We, the presidents and leaders of industry, businessmen and women, bankers and wealthy citizens would like the richest people to have to pay a ‘special contribution’.”

They said they had benefited from the French system and that: “When the public finances deficit and the prospects of a worsening state debt threaten the future of France and Europe and when the government is asking everybody for solidarity, it seems necessary for us to contribute.”

They warned, however, that the contribution should not be so severe that it would provoke an exodus of the rich or increased tax avoidance.

via BBC News – France introduces new tax on high incomes.

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U.S. Incomes Fall Sharply and Millionaires Don’t Pay Taxes

Welcome to the wonderful world of the Rich….

Where more and more Millionaires don’t pay any taxes while the average U.S. income plunges…

You can thank the GOP for this and, again, thank the Dems for letting them get away with it.

It’s becoming increasingly clear, neither Party is looking out for the Middle Class or the average American.  In Washington today, it’s all about how to help the Rich get more and keep more.

As my friend Phillip reminded me, it’s looking more and more like 1937 again.

President Obama could have been FDR, but I’m afraid he’s on the verge of becoming Herbert Hoover.

From Reuters (emphasis mine):

U.S. incomes plummeted again in 2009, with total income down 15.2 percent in real terms since 2007, new tax data showed on Wednesday.

The data showed an alarming drop in the number of taxpayers reporting any earnings from a job — down by nearly 4.2 million from 2007 — meaning every 33rd household that had work in 2007 had no work in 2009.

Average income in 2009 fell to $54,283, down $3,516, or 6.1 percent in real terms compared with 2008, the first Internal Revenue Service analysis of 2009 tax returns showed. Compared with 2007, average income was down $8,588 or 13.7 percent.

Average income in 2009 was at its lowest level since 1997 when it was $54,265 in 2009 dollars, just $18 less than in 2009. The data come from annual Statistics of Income tables that were updated Wednesday.

The average tax rate was 11.4 percent, up from 10.5 percent in 2007, the Internal Revenue Service data showed.

No income tax was paid by 1,470 of the 235,413 taxpayers earning $1 million or more in 2009, compared with the 959 taxpayers with million-dollar-plus incomes who paid no income taxes in 2007.

via U.S. incomes fell sharply in 2009 | Reuters.

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Stock Market Plunges…

I hate to say it, but “I told you so”.

Congress is hurting the recovery, not helping it….

I’m afraid, it’s only going to get worse…

I’ll blame the GOP for creating this false Budget Deficit crisis which drove behavior in DC that only made things worse….

And I’ll blame the Dems for not having the guts to stand up to the GOP/Tea Party to force them to address the real issue:  Jobs.

From CNN:

Poof! There goes any progress stocks made in 2011.

Stocks plunged Thursday, with the Dow tumbling 400 points to hit its lowest level since December, as global economic fears gripped the market.

U.S. markets were already sharply lower on widespread worries, including the weak job market. But the selling gained momentum as Japanese and European policymakers stepped in with dramatic measures to shore up their financial markets.

There’s “total fear” in the market, said Bob Doll, chief equity strategist at the world’s largest money manager, BlackRock.

All three major indexes tumbled more than 3% Thursday and erased all their gains for the year. The indexes have also pushed into ‘correction’ territory – defined as a 10% drop from their highs earlier this year. Over the past 10 days alone, the Dow, S&P 500 and Nasdaq have dropped more than 8%.

“In the last two weeks, we’ve been through the ringer,” said Rich Ilczyszyn, market strategist with futures broker Lind-Waldock. “When we start looking at the recovery, there’s nothing to hang our hats on anymore.”

via Market Report – Aug. 4, 2011 – CNNMoney.

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