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Helen Moore's Obama Watch - 'Say NO to Socialism!' - Forum and Archive at AIPNews.com
Wednesday, July 28, 2010
Tuesday, July 27, 2010
Obama portrays GOP as lackeys [DISCLOSE Act]
AIPNews.com
Free the First Amendment Committee
Free the First Amendment Committee
Notes corporate weight as Senate eyes campaign rules
The Washington TimesMonday, July 26, 2010
2011 Tax Hike: Progressive Style
AIPNews.com
The Committee for Tax, Monetary & Spending Reform
The Committee for Tax, Monetary & Spending Reform
Tax Relief for the Middle Class (whatever middle class means)
by: Larry Walker, Jr.
With the imminent expiration of the Bush tax cuts, Mr. Obama and his progressive minions fathom that its termination doesn't really constitute a tax increase. It's not a tax hike in their minds, it's just the conclusion of another failed Bush policy which helped contribute to the 'great recession'. So in 2011, when your taxes climb, and they will advance across the board (as shown here), you shouldn't blame Obama. Paying a little bit more shouldn't be a problem now, because we are far better off today under Obama's economic stimulus, than we were in all of 2001 through 2008. Right?
Leave it to Barack H. Obama, II to have an answer for every problem facing Americans today.
You got problems? Obama's got solutions.
Problem: You are upside down on your mortgage and can't see the light of day.
Solution: That's not my fault, it's Bush's fault. You're still getting a tax hike.
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Problem: You are still trying to work out a loan modification to try to save your home.
Solution: Hopefully that will work out, but right now I need to raise your taxes.
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Problem: You recently lost your home and are struggling to make ends meet.
Solution: So sorry, but I gotta raise your taxes too.
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Problem: You're on 99 weeks of extended unemployment benefits due to a rotten economy and the failed stimulus program.
Solution: Be sure to have taxes taken out of it, because you're getting a tax hike too.
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Problem: You haven't saved enough for retirement and you are trying to find a way to save more.
Solution: Well, if you have money to save, then you can pay more taxes. You're definitely getting a tax hike.
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Problem: Your business suffered massive losses over the last two years and you're still paying off loans and credit lines, and trying to dig your way out of a hole.
Solution: We all have to do our fair share. A tax hike for you.
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Problem: The Gulf of Mexico oil spill completely destroyed your livelihood and you don't know what you're going to do.
Solution: That's BP's fault, not mine. Set some of that BP money aside, because you're getting a tax hike too.
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Problem: You're already working two jobs and still living paycheck to paycheck.
Solution: Try to cut back on expenses, or get a third job, because you're getting a tax hike too.
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Problem: You're one of the 1.4 million who filed for bankruptcy last year.
Solution: Now that all of your debts are out of the way, paying more taxes should not be a problem. Tax hike!
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Problem: You're one of the 40 million Americans currently on food stamps.
Solution: Since there will be 3 million more on food stamps next year, we have to raise taxes on everyone else to help out folks like you. And if you earn enough income to be taxed in the near future, don't you worry, you're getting a tax hike too.
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Problem: You've paid taxes your whole life, and you're worried that the reinstatement of the 55% estate tax in 2011 will force the sale of your family business.
Solution: If you leave an estate worth over $1 million, your estate will be forking over the 55%. But, since you'll be dead by that time you shouldn't worry about it so much. When we spread the wealth around it's good for everybody.
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Problem: You're worried about how the known (and hidden) taxes in Obamacare, the Stimulus Act and other stealth legislation will affect you on top of the 2011 tax increase.
Solution: Don't worry about it. You'll find out when we do. Once we finally finish reading and interpreting all of this mess, ... I mean reform, we'll let you know.
Here's what our current tax rate schedule looks like as compared to what the 2011 rates may look like (assuming no adjustment for inflation):
Obama and the progressives want to somehow let the Bush tax cuts expire for anyone making over $200,000 per year, but it's not clear whether or not tax rates for those below that amount will revert to pre-2001 levels. Since there is no cut-off at $200,000 per year under our current tax rate schedule, Obama will need to invent a new tax rate schedule. Here's what an Obama tax rate schedule might look like:
Under current tax law, those making over $373,650 a year are considered wealthy, but from now on, if you make over $200,000 a year (formerly $250,000) you're rich, because Obama says so.
Unusual uncertainty remains unusually uncertain.
It will be interesting to see how Congress resolves this. If Congress fails to take action, taxes will rise across the board, by default. Waiting until after the November elections is not an option.
Original Post at Natural Born Conservative
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Larry M. Walker, Jr.
Have we been too tolerant?
AIP is 'Always In Prayer' Network
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Laus Deo
July 26, 2010
Tom Hoefling
For the last couple of days on a particular forum I've had one of those tedious back and forth exchanges with an atheistic libertarian type, the sort who twists founders' quotes trying to prove that somehow those great Christian patriots were heathens like himself.
One of the quotes I ran across as I was answering him was from Patrick Henry:
“It cannot be emphasized too clearly and too often that this nation was founded, not by religionists, but by Christians; not on religion, but on the gospel of Jesus Christ. For this very reason, peoples of other faiths have been afforded asylum, prosperity, and freedom of worship here.” -- May 1765 Speech to the House of Burgesses
The only reason people like this libertarian are even in this country is because of Christian toleration. Think about it.
Constant modern accusations and demands for "toleration" from the Left (demands which are stridently made by some of the most intolerant people on the planet when it comes to Christians, Christianity, and basic morality), just don't square with reality.
In fact, in light of the incredible damage that is now being done to this republic by the godless Left, and by those who hold various and sundry religious or ideological notions that are alien to America's founding principles, one must wonder if we Christians haven't actually carried the toleration thing more than a bit too far, even to the point of national suicide. It's something to think about.
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Laus Deo
Sunday, July 25, 2010
2011 Tax Jam: Wrong Way, Wrong Road
AIPNews.com
Real Economics - The family farm, home & business
Natural Born Conservative
Real Economics - The family farm, home & business
Natural Born Conservative
Directions for Misguided Democrats
by: Larry Walker, Jr.
In my last blog post, 2011 Tax Increase: A Reality Check, I attempted to point out how the Bush tax cuts applied to all Americans at every level of income, and that with their expiration at the end of 2010, income taxes will rise across the board. Although valid enough to ignite renewed interest, I now want to expand on this in a more technical manner with examples.
The following table compares the pending change in tax rates (assuming no change for inflation).
As evident with a quick glance, those in lower income levels will see their taxes increase the most with taxes increasing by 50% (from 10% to 15%), but this doesn’t tell the whole story. Only by looking at effective tax rates, can we see the impact of the pending tax increase on hard working Americans, and small business decision makers. [Note: The effective tax rate is calculated by dividing the amount of taxes paid, by the amount of gross income.]
When it comes to taxes, there are many variables that will effect the calculation of ones effective tax rate, such as filing status, number of children, whether or not one itemizes deductions, and whether one has income from pass-throughs (i.e. Partnerships, and S-Corporations), or from capital gains. So in an effort keep this somewhat simple, the examples that follow assume a married couple without children, without capital gains, who does not itemize deductions, and whose income is limited to $500,000.
[Note: The following tables place income on the cusp of each tax bracket, and thus were prepared on a ‘give or take a dollar or two’ basis. (You may click on each table to enlarge.)]
Example 1 - 10% Bracket: Joe and Jane are married and have combined wages of $35,450.00. In 2010 they will pay income taxes of $1,675 with an effective tax rate of 4.7%. Their 2010 after-tax income is $33,775. In 2011 they will pay income taxes of $2,512.50 with an effective tax rate of 7.1% which represents a tax increase of 50%. Their after tax income in 2011 will fall by $837.50.
Example 2 – 15% Bracket: Lance and Lori are married and have combined income of $86,700.00. In 2010 they will pay income taxes of $9,362.50 with an effective tax rate of 10.8%. Their 2010 after-tax income is $77,337.50. In 2011 they will pay income taxes of $10,200 with an effective tax rate of 11.8% which represents a tax increase of 8.9%. Their after tax income in 2011 will fall by $837.50.
Example 3 – 25% Bracket: Nick and Nancy are married and have combined income of $156,000.00. In 2010 they will pay income taxes of $26,687.50 with an effective tax rate of 17.1%. Their 2010 after-tax income is $129,312.50. In 2011 they will pay income taxes of $29,604.00 with an effective tax rate of 19.0% which represents a tax increase of 10.9%. Their after tax income in 2011 will fall by $2,916.50.
Example 4 – 28% Bracket: Paul and Penny are married and have combined income of $227,950.00. In 2010 they will pay income taxes of $46,833.50 with an effective tax rate of 20.5%. Their 2010 after-tax income is $181,116.50. In 2011 they will pay income taxes of $51,908.50 with an effective tax rate of 22.8% which represents a tax increase of 10.8%. Their after tax income in 2011 will fall by $5,075.00.
Example 5 - 33% Bracket: Ronald and Rhonda are married and have combined wages $392,350.00. In 2010 they will pay income taxes of $101,085.50 with an effective tax rate of 25.8%. Their 2010 after-tax income is $291,264.50. In 2011 they will pay income taxes of $111,092.50 with an effective tax rate of 28.3% which represents a tax increase of 9.9%. Their after tax income in 2011 will fall by $10,007.00.
Example 6 – 35% Bracket: Tom and Tammy are married and have combined income of $518,700.00. In 2010 they will pay income taxes of $145,308.00 with an effective tax rate of 28.0%. Their 2010 after-tax income is $373,392.00. In 2011 they will pay income taxes of $161,127.10 with an effective tax rate of 31.1% which represents a tax increase of 10.9%. Their after tax income in 2011 will fall by $15,819.10.
Does the government deserve 30-40% of your money? From the examples provided, those making over $392,350 will pay between 31.1% up to 39.6% of every additional dollar earned in taxes. This particularly impacts small business owners whose income is taxed at the personal level. It’s hardly worth the effort to expand operations and provide jobs when the government will get 30% to 40% of the paper profits.
All income is not created equal. The federal government should understand that just because a small business has taxable income of $400,000 doesn’t mean that its owner has $400,000 in the bank. Some of that money was used to pay non-deductible principal payments on loans, and some of it is necessary for working capital in order to continue operations. Although the interest paid on loans is deductible for tax purposes, principal repayments are not, so the government really shouldn’t assume that taxable income is the same thing as disposable income.
A tax increase is a tax increase. Those making under $36,000 per year will see the highest tax rate increase of 50%. Although those making between $36,000 and $87,000 will see the smallest increase at potentially 8.9%, a tax increase is a tax increase. For those in the remaining brackets, taxes will increase by approximately 10% to 11%. This is a far cry from Obama’s bold declaration that we would not see our taxes increase by ‘one dime’. Technically it will be more like a dime to fifty cents on the dollar. Yes, income taxes will increase for all who pay taxes, without quick action.
Taxes will rise by a lot more than a dime. When the Bush tax cuts expire at the end of this year, couples making over a nickel and under $500,000 per year, will see their effective income tax rates rise, from between 8.9% to 50.0%. Lower income wage earners face the largest increase. Couples with income above $392,350 will be effectively handing the government 30% - 40% of their income.
Unusual uncertainty is unusually uncertain. The longer Congress delays in giving the public clarity, the more prolonged this period of ‘unusual uncertainty’. Individuals and small businesses are already in process of making plans for the remainder of 2010 and forward, and without knowing for certain whether or not the Bush tax cuts will be extended, planning has come to a halt. Under the assumption that taxes will rise in 2011, plans for further spending in 2010 have been shelved, because those deductions will be of better use next year. Delaying a decision until year-end would not be wise.
What's your total tax bill? Now when you add to the above effective tax rates: State and Local taxes, Social Security and Medicare taxes, sales taxes, property taxes, excise taxes; and possibly new health care and carbon taxes, the situation is not only unusually uncertain, but unbearable and unsustainable. Politicians should listen when taxpayers holler the acronym, T.E.A., which stands for taxed enough already. Congress should not only re-instate the Bush tax cuts, but should consider further cuts in both income taxes and its own out-of-control spending (which leads to higher and higher taxes). Failure to take the public seriously will result in the death of the American economy. Yes, Misguided One, when it comes to taxes and spending, we wish to go backwards, not further into the abyss.
A Potential Solution - One solution would be to extend the Bush tax cuts for another three years with one minor change. There should be an additional standard deduction granted to small business owners. Job creators who own Partnerships and S-Corporations should specifically be granted an additional deduction based on the level of business income reported on their personal tax returns. This incentive would encourage small business owners to expand, will create more jobs, and will improve the overall economy. Let's start putting the incentive where it matters and stop punishing those who drive the American economy.
Original article at Natural Born Conservative
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Larry M. Walker, Jr.
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