Same old Story

Fiscal Policy: Stop us if you’ve heard this one: Republicans propose pro-growth tax reform to boost the economy, and liberals indignantly shout out: “tax cut for the rich.”

Everyone knows the current tax code is a millstone around the neck of our economy. Almost all the Republicans running for president have admirable tax plans, and one of the best is the flat tax proposed by Texas Sen. Ted Cruz that would lower business taxes to 16% on net business income and 10% on personal income — wages, salaries, capital gains and dividends.

The Tax Foundation says it would boost wages, output and net income about 10% over the next decade — which is an extra $2.5 trillion in GDP and millions of new jobs.

Right on cue, the leftwing Tax Policy Center has trashed the plan, calling it a tax cut for the rich and an $8.6 trillion increase in the debt over 10 years. And the lapdogs of the liberal media ate it up.

The TPC has about zero credibility on these issues. Its tax models predicted the Reagan tax cuts would lead to massive revenue losses and that the Clinton-era capital gains cut would blow a hole in the deficit. In both cases revenues didn’t shrink — they swelled. And the share of taxes paid by the rich soared in each case.

But the TPC’s shattered crystal ball doesn’t let history get in the way of a good story — especially if the theme is class warfare.

The center relies on what is called “static analysis.”  It assumes the economy will not grow much if tax rates are lowered and savings and investment are encouraged through a less-punitive tax code. But if the tax rate on working and investing is lowered, then expect more work and more investment. History bears this out again and again.

TPC says high-income taxpayers would get an average tax cut in 2017 of about $6,100, while the poor would save only $46. But most of the poor in the bottom one-third pay almost no income tax at all. How do you cut income taxes for people who don’t pay income taxes?

Nothing could be less fair than our current wreckage of a tax code. The people at the bottom of the income ladder don’t have jobs, don’t have paychecks and don’t have income outside of welfare benefits. The TPC can never seem to figure out what Ted Cruz said when he introduced his flat tax: “The best way to help the poor is with a job — not a government handout.” (IBD)

sowell- liberal caresowell-complain

Tax Freedom Day

April 18 will be Tax Freedom Day, the day when Americans have worked enough to pay all of their federal and state taxes for 2013 – a round total of $4.22 trillion, according to an analysis done by the Tax Foundation.

That’s five days later than in 2012. And an increase overall of 8 Days SINCE Obama took over.

Tax Freedom Day is five days later than last year, due mainly to the fiscal cliff deal that raised federal taxes on individual income and payroll. Additionally, the Affordable Care Act’s investment tax and excise tax went into effect. Finally, despite these tax increases, the economy is expected to continue its slow recovery, boosting profits, incomes, and tax revenues.

Americans will pay more than $2.76 trillion in federal taxes and $1.45 trillion in state taxes for 2013 — for a total of $4.22 trillion in taxes, or 29.4 percent of income. (Figures are rounded.)

Obama paid 18% for 2012 by the way. I guess what the liberals say about the 1%ers is true. 🙂

April 18 is the 108th day of the year, or 29.4 percent of the calendar year.

And the Good News is: The Liberals and The president want to raise Taxes so they can spending even more!!!

They have run up $7 Trillion in New Debt. So I guess Tax Freedom Day Next year will be even later.

Rejoice!!! 🙂

The latest ever Tax Freedom Day was May 1, 2000 – meaning Americans paid 33.0 percent of their total income in taxes. A century earlier, in 1900, Americans paid only 5.9 percent of their income in taxes, meaning Tax Freedom Day came on January 22.

The new president (Satan Himself- George W. Bush) delivered on his tax cut promises, which, combined with a recession in 2001, caused the tax burden to fall considerably. In 2003, Tax Freedom Day arrived on April 14, more than two weeks earlier than it had in 2000.

By the time of Obama Tax Freedom day in 2009 (before all his crap hit) was April 10th.

World War I tax increases led to a jump in Tax Freedom Day from 1917’s January 24 to 1918’s February 8 to 1921’s February 22. In the 1920s, when Justice Oliver Wendell Holmes described taxes as the price of civilized society, Tax Freedom Day was arriving in February.

The Great Depression and the Hoover/Roosevelt tax increases led not only to a later Tax Freedom Day but a shift in who was collecting. In 1932, Americans spent 10 days paying federal taxes and 46 days paying state and local taxes. By 1940, Americans worked 33 days to pay each. World War II brought increased federal spending and borrowing, with Tax Freedom Day arriving in April for the first time in 1943.

According to the foundation, Americans will spend more on taxes than they will on food, housing, and clothing combined in 2013.

The Tax Foundation has calculated it will take Americans:

— 32 days to pay for federal individual income taxes;

— 24 days to pay for federal social insurance taxes;

— 12 days to pay for state and local sales taxes and excise taxes, as well as property taxes;

— 8 days to pay for state and local individual income taxes, as well as federal corporate income tax;

— 3 days to pay for other federal taxes and another three days to pay for other state and local taxes,

— 2 days to pay for federal excise taxes,

— 1 day to pay for state and local corporate income taxes,

— and three hours to pay for state and local social insurance taxes,

Last year’s Tax Freedom Day — April 13 — was five days earlier, with the difference attributed to increased federal taxes on individual income and payroll as part of the fiscal cliff deal. In addition, investment and excise taxes under Obamacare (the Affordable Care Act) have come into effect, as well.

Since 2002, federal expenditures have exceeded income, and the federal budget deficit has exceeded $1 trillion annually since 2009, though this year it is expected to come down to $833 billion. If that deficit spending was included in the calculations — then nationwide tax Freedom Day would be May 9.

Tax Freedom Day has been calculated for individual states since sufficient data first became available in 1990. According to the economists, the day varies — it will fall later in higher-income states, due to the “steep progressivity” of the federal tax system, while lower-income states have earlier dates for the same reason.

The latest Tax Freedom Day in the country this year will be May 13 in Connecticut. March 29 was the earliest day, for both Louisiana and Mississippi.

http://taxfoundation.org/article/tax-freedom-day-2013-april-18-five-days-later-last-year

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Arizona taxpayers worked until April 5th (8th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: California, April 24th (ranked 6th latest nationally); Nevada, April 14th (ranked 21st latest nationally); Utah, April 13th (ranked 24th earliest nationally); Colorado, April 17th (ranked 16th latest nationally); and New Mexico, April 3rd (ranked 5th earliest nationally).

But that does take into account the lovely Phoenix Food Tax… 🙂

tfd_2013_map_small

The Census data indicates that the most volatile source of combined state and local government tax revenues in the U.S. is corporate income tax, followed by individual income tax and sales and gross receipts taxes. Property tax revenues are the least volatile from year to year. These findings are confirmed by a 2010 Tax Foundation analysis of state tax revenue volatility by tax type, which found that corporate income and personal income tax revenues were the most volatile.[7] Further, the general shape of annual changes in revenues from taxes on corporate income, individual income, and sales and gross receipts closely follows the shape of the overall economy. Changes in income taxes, however, are much more pronounced as the overall economy changes.

Depending on high-income earners for tax revenue is even more problematic. Using 2009 IRS data, we found that millionaire income, in addition to the tax revenues they generate for the federal government, is quite volatile:

Comparing the 2009 data to the pre-recession data for 2007 shows that not only did the number of millionaires fall by 40 percent, but the overall income of millionaires fell by 50 percent. The result for the U.S. Treasury was that 54 percent of the total drop in tax revenues during this period was due to the falling tax collections from millionaires.

Though this example uses federal tax collections, the principle still applies to state and local governments. The more a government relies on volatile sources of revenue, the more unstable overall funding will be when the economy dips. (Tax foundation)

In other words, Class warfare is a very unstable way to make tax policy. Gee, what a shock that is…

Giant 590 CDN

 

Cherry Picking

We’ve been hearing lots of talk of “economic recovery” and “reductions in unemployment” and “better days ahead” in the mainstream media.  It’s now about eight months until the 2012 election, and the Obama campaign is in full-on panic mode over the bad economy, so they’re releasing all kinds of misinformation, which is gobbled up by the press, who simply regurgitate it without a moment’s pause to question or analyze the “facts” and “figures” being presented.  And why should they?  Obama is their guy, and they would be thrilled to see him re-elected, so they’re happy to let the falsehoods stand when they report what they’re fed, and they have a million excuses at the ready if they’re ever called on it.  “This was a government report – we had reason to believe it”, or “those numbers were fluid – we just reported where they stood at that particular moment”.

The BS: In 2009, we were losing 750,000 jobs a month. Our biggest banks and auto companies were on the brink of pulling down the whole economy. But we righted the ship. We did not tip into a Great Depression. And over the last 22 months, businesses have created more than 3 million jobs, the most since 2005 and more manufacturing jobs than since the 1990s. We still have a long way to go but we have restored hope and possibility to the economy.

This chart from the Bureau of Labor Statistics utterly destroys that argument.  The BLS measures the percentage of working-age adults currently employed in the population — and as can easily be seen, three years of Barack Obama has not made any dent in the trough created by the recession:

That is not recovery.  It’s not even a start to a recovery.  By cherry-picking 22 months, the best Greenberg can claim is job growth of 136,370 jobs per month, which would barely exceed the needed job growth per month to keep up with population growth.

Why cherry-picking?  I explained the issue when Obama tried using this claim during his Google+ hangout at the beginning of the month:

But why 22 months?  Obama began his term in January 2009, and the recession ended in June 2009.   What’s so special about March 2010?  Well, not so surprisingly, that’s almost the nadir of employment during Obama’s presidency, which actually took place in February 2010, two years ago this month. Even if he’d picked the right month, it would still only have been 2.654 million, not 3 million.

Calculating from the end of the recession, the net job creation from those 31 months is only 1.407 million, a wan 45,390 net jobs a month, far below the pace needed to keep up with population growth.   Calculating for the entirety of his presidency, we’re actually in the hole 937,000 jobs.  Obama tried to cherry-pick the worst month in order to claim the most credit he could possible for job growth, and managed to get both the month and the math wrong anyway.

Obama and his strategists can cherry-pick all they like.  This chart tells the real story of Obamanomics and job creation during his term.

Good News: DHS Spending $11 Million Scouring Web for Criticism of Its Policies

I’d have loved to have heard the shrieks of indignation coming from The New York Times and the rest of the leftist infrastructure had John Ashcroft and other Bush administration officials engaged in this kind of egregious behavior.

No double standards here, folks.

The Department of Homeland Security (DHS) has been paying a defense contractor $11.4 million to monitor social media websites and other Internet communications to find criticisms of the department’s policies and actions.

A government watchdog organization, the Electronic Privacy Information Center (EPIC), obtained hundreds of documents from DHS through the Freedom of Information Act and found details of the arrangement with General Dynamics. The company was contracted to monitor the Web for “reports that reflect adversely on DHS,” including sub-agencies like the Federal Emergency Management Agency, Citizenship and Immigration Services, Customs and Border Protection and Immigration and Customs Enforcement.

In testimony submitted to the House Subcommittee on Counterterrorism and Intelligence, Ginger McCall, director of EPIC’s Open Government Project, stated that “the agency is monitoring constantly, under very broad search terms, and is not limiting that monitoring to events or activities related to natural disasters, acts of terrorism, or manmade disasters…. The DHS has no legal authority to engage in this monitoring.”

McCall added: “This has a profound effect on free speech online if you feel like a government law enforcement agency—particularly the Department of Homeland Security, which is supposed to look for terrorists—is monitoring your criticism, your dissent, of the government.”

Rest assured that our beloved, baritone DHS secretary — and her ostensible boss, Eric “Fast ‘n’ Furious” Holder — would never, ever use this kind of information to go after private citizens. They’re just doing research.

As far as you know.

Consider this reason number 43,263 to kick this administration’s ample rear out of office in November.

PENNSYLVANIA JUDGE THROWS OUT ASSAULT CASE

An atheist annoyed a Muslim by using a Halloween costume of “zombie Mohammed” and the Muslim to beat the shit out the guy.

The charge goes to try and the Judge throws it out calling the atheist a “doofus”.

From Jonathan Turley:

There is a surprising story out of Mechanicsburg, Pennsylvania that seems the perfect storm of religious tensions. You begin with Ernie Perce, an atheist who marched as a zombie Mohammad in the Mechanicsburg Halloween parade. Then you add Talaag Elbayomy, a Muslim who stepped off a curb and reportedly attacked Perce for insulting the Prophet. Then you have a judge (Judge Mark Martin) who threw out the criminal charges against Elbayomy and ridiculed the victim, Perce. The Judge identifies himself as a Muslim and says that Perce conduct is not what the First Amendment is supposed to protect. [UPDATE: The judge says he is not a Muslim despite what is heard by most listeners on the tape. That being the case, the criticism of the comments remains.] [UPDATE2: Perce has responded to our blog and denied many of the factual representations made by Judge Martin].

The judge not only points to the Koran in the courtroom but his time in Muslim countries as relevant to his deliberations. Putting aside the problem of ruling in a case where you admit you have strong personal feelings, the lecture given on the first amendment is perfectly grotesque from a civil liberties perspective.

The Judge: “Well, having had the benefit of having spent over two-and-a-half years in predominantly Muslim countries, I think I know a little bit about the faith of Islam. In fact, I have a copy of the Quran here, and I would challenge you, Sir, to show me where it says in the Quran that Muhammad arose and walked among the dead. I think you misinterpreted a couple of things. So before you start mocking somebody else’s religion, you might want to find out a little more about it. It kind of makes you look like a doofus. …

In many other Muslim-speaking countries, err, excuse me, many Arabic-speaking countries, predominantly Muslim, something like this is definitely against the law there, in their society. In fact, it could be punished by death, and frequently is, in their society.

Here in our society, we have a Constitution that gives us many rights, specifically First Amendment rights. It’s unfortunate that some people use the First Amendment to deliberately provoke others. I don’t think that’s what our forefathers intended. I think our forefathers intended to use the First Amendment so we can speak with our mind, not to piss off other people and cultures – which is what you did.

I don’t think you’re aware, Sir, there’s a big difference between how Americans practice Christianity – I understand you’re an atheist – but see Islam is not just a religion. It’s their culture, their culture, their very essence, their very being. They pray five times a day toward Mecca. To be a good Muslim before you die, you have to make a pilgrimage to Mecca, unless you’re otherwise told you cannot because you’re too ill, too elderly, whatever, but you must make the attempt. Their greeting is ‘Salam alaikum, wa-laikum as-Salam,’ uh, ‘May God be with you.’

Whenever it is very common, their language, when they’re speaking to each other, it’s very common for them to say, uh, Allah willing, this will happen. It’s, they’re so immersed in it. And what you’ve done is, you’ve completely trashed their essence, their being. They find it very, very, very offensive. I’m a Muslim. I find it offensive. I find what’s on the other side of this [sign] very offensive. But you have that right, but you are way outside your bounds of First Amendment rights.

I’ve spent about seven years living in other countries. When we go to other countries, it’s not uncommon for people to refer to us as ‘ugly Americans.’ This is why we hear it referred to as ‘ugly Americans,’ because we’re so concerned about our own rights, we don’t care about other people’s rights. As long as we get our say, but we don’t care about the other people’s say.”

Burning the Flag anyone? Occupoopers pooping on the Flag anyone? Flag in a Jar of Urine anyone?

Hitler References, “racism” references by Liberals when you disagree with them.

No provocation there. It’s unfortunate that some people use the First Amendment to deliberately provoke others. –The Judge. 🙂

FREEDOM –DEMOCRAT STYLE

Democrat Kathy Hochul (via Guy Benson): I love the audible shock that ripples through the upstate New York crowd when their elected representative informs them that “the Congress” isn’t especially interested in what the Constitution has to say on certain “aspects” of its sundry decrees.  She goes on to pay lip service to religious freedom, suggesting that HHS’ extremely narrow exemptions to the mandate are sufficient.  Under this interpretation, the fact that “the decision has been made by this Congress than Americans are entitled to healthcare” renders conscience objections from religious institutions and individuals obsolete. 

From Here Campaign Website: Democrat Kathy Hochul dismissed being portrayed as a tax-and-spend liberal as “politics” and said she’s a pragmatist who is open to good ideas no matter which side of the political aisle they come from.

“You can’t label me anything,” Hochul said during a stop at The Daily News Thursday.

Sure…. 😦 Whatever….

http://hotair.com/archives/2012/02/25/video-dem-rep-booed-by-constituents-over-hhs-mandate/

“Well, basically, we’re not looking to the Constitution on that aspect of it.”- Rep Hochul

THE IRS & TEA PARTY

In January and February of this year, the Internal Revenue Service began sending out letters to various local Tea Parties across the country. Mailed from the same Cincinnati, Ohio IRS office, these letters have reached Tea Parties in Virginia, Hawaii, Ohio, and Texas (we are hearing of more daily). There are several common threads to these letters: all are requesting more information from these independent Tea Parties in regard to their nonprofit 501(c)(4) applications (for this type of nonprofit, donations are not deductible). While some of the requests are reasonable, much of them are strikingly onerous and, dare I say, Orwellian in nature.

The other question is the timing of these IRS letters requesting reams of copies and hundreds of hours of work and potentially thousands of dollars in accounting/legal fees (all due in two weeks). Some of these Tea Party groups have not received anything concerning their nonprofit status since 2010 prior to these letters.

In the near future, the Affordable Healthcare Act mandate and all things related to healthcare are to be policed and enforced by the IRS. This means thousands more IRS agents will be added, but the actual number is yet unknown. Considering that healthcare accounts for 1/6th of the U.S. economy, it will probably be a significant number of additional agents. According to the tax administration inspector general, Russell George, “The new Affordable Care Act provisions represents the largest set of tax law changes in 20 years.” That’s an overwhelming thought considering there are over 70,000 pages of federal tax code. (KFYI)

But I guess I’m just Cherry Picking… 🙂

Political Cartoons by Henry Payne

Political Cartoons by Gary McCoy

Political Cartoons by Michael Ramirez

It Pays to be Illegal

Quick Aside: if you get a chance watch TORCHWOOD: Miracle Day, there’s a lot in there about manipulation of language for economic and political advantage. Torchwood: Children of Earth is a nice nasty allegory about how far a government could go.

Now back to the regularly scheduled rant…

Michael Ramirez Cartoon

If the federal government had actually wanted to encourage illegal immigration, wouldn’t a big tax credit be the way to bring them in? Lucky us, that’s what the IRS is doing — and with our money.

A blistering Treasury Department audit released Friday found that “individuals not authorized to work in the United States were paid $4.2 billion in refundable credits.” Those credits are meant to zero out any taxes paid by the poor, and often amount to checks as high as $1,000, courtesy of other taxpayers.

In the last five years, some 2.3 million illegal immigrants decided they, too, were “entitled” to that money, and the IRS paid them. Word got out and the payouts to illegals grew fourfold over the last five years.

The Treasury report noted that paying these credits to illegals is explicitly prohibited by U.S. law, which holds that those unauthorized to work here cannot receive federal benefits.

The IRS claims it’s not its job to check the immigration status of those requesting U.S. money (easily done if a filer has a valid Social Security number instead of a “taxpayer ID”).

Just like the Justice Department. Funny That…

The tax agency apparently thinks laws only apply to people it audits — not politically sensitive illegal aliens.

So now we have the sorry spectacle of $4.2 billion in money from law-abiding taxpayers flowing to law-breaking foreigners who belong in other countries.

No wonder the U.S. has some 12 million illegal immigrants, rolling in by the thousands daily in part from the well-established human smuggling rackets controlled by Mexico’s drug and crime cartels.

No economic phenomenon ever happens without vast sums of money involved. IRS tax credits are just such a big-money incentive, the Treasury report found.

“(T)he payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives,” the report said.

This could explain why in recent years millions of illegal immigrants are going beyond just the old trick of having anchor babies with automatic U.S. citizenship to win benefits. They’re now bringing their foreign-born kids over, too. All that “free” education, “free” medical care, “free” legal aid and now “free” tax credits add up.

And you get to pay for it! Oh, and if you object– YOU’RE A RACIST!!  🙂

As much as the open-borders lobby insists that illegal immigrants are only here to work and produce, this report shows they’re also here to drain and consume.

So much for that liberal dismissive hoary of “doing jobs Americans won’t do” if they are getting paid under the table AND getting IRS rebates to boot! They are doing BETTER than WE would at those jobs!

So not only do illegal immigrants take jobs from low-skilled Americans, and depress all wages by their willingness to work off the books at lower costs (which are princely sums for the standards of living in the countries they remit money to), they also get big tax credits from other taxpayers, too.

By handing out these freebies indiscriminately, it’s clear the federal government seems to want it that way, making illegal immigration a more attractive option than staying home and emigrating legally.

But as there’s also no free lunch, the IRS is also blithely betraying the people it’s sworn to protect and defend: law-abiding taxpaying U.S. citizens.

“With our debt standing at over $14.5 trillion and counting, it’s outrageous that the IRS is handing out refundable tax credits, which are spending through the tax code, to those who aren’t even eligible to work in this country,” said Utah’s Sen. Orrin Hatch, the ranking Republican on the Senate Finance Committee.

“The disconcerting findings in this report demand immediate action from Congress and the Obama administration.”

At a time when enforcing the integrity of our border is a major federal failure, the one thing the feds shouldn’t be doing is offering additional incentives to encourage even more illegal immigration.

The fact that they do suggest an out-of-control federal government that wants, that’s right, wants, more illegal mendicants to justify its own gargantuan size.

That’s not an existence worthy of the American people and if the federal government’s minions cannot follow the laws, then it’s time to cut them down to a manageable mission. (IBD)

Comment on IBD: Since the IRS is about to become the “nanny” for Obamacare, perhaps we could put them in charge of rounding up illegal immigrants since they know where they are since they have both address and bank account numbers.

Sorry, the IRS Police will only go after you, the Legal American. Not the future Democrat voters of Amerika.

Amerika, what a country! And you want for more years of this don’t you? 🙂

Political Cartoons by  Bennett

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