psychpol

October 2, 2012

TAXING QUESTIONS

Filed under: Psychology and Politics — psychpol @ 3:14 pm

If you are not interested in the current Presidential campaign, it is understandable. But, the selection made will greatly impact your life and that of your loved ones. We are bombarded with contradictory input, and simply ignoring the issues is tempting.

But, when the people become sheep, their government becomes a pack of wolves. And they do love to devour sheep! You and me.

One of the issues in this campaign involves Taxation. This issue seems quite complex and confusing for most of us.

Information overload encourages a shut down of our thinking brain. Some campaigns deliberately try to create this and stimulate anger instead. Others, not so much.

So let’s try to understand what is at stake regarding Taxation. Who is actually proposing what?

Here are a few facts:

In the most recent tax year for which data is available, the IRS reports that 140 million returns were filed. Of those, 70 million paid federal income taxes. 70 million did not.

The top 1% paid 37% of all Federal income taxes. They earned 18.5% of all revenue. The top 10% paid 72% of all income taxes. The lower 49.5% paid no income taxes.

Although some of the bottom 49.5%  paid  payroll taxes and Social Security taxes (if working), and sales taxes to their state, city and county, and perhaps a state income tax, one half of the taxpayers now support over 300 million citizens at the Federal level.

The 70% paid for all entitlements includes cell phones,  student loans,  welfare programs,  food stamp programs, Medicaid,  Social Security,  Social Security Disability Income and Medicare. 

If income tax revenue does not match entitlement and other spending , more money is borrowed.

Currently, we owe over $16 trillion, with this having increased from about $10 trillion to the current number under President Obama and his administration.

This computes to about $60,000 in future debt for every American child. And the number is rising. Do you want to pass this on to our children?

To take the latest maneuver by the Obama administration to buy votes, there is something like 15 million people in America with free cell phones, with their usage bills paid for by the Federal government.

Many see the “government” as an abstraction, but its revenue comes from the producers in our society, not from Obama or the heavens.

Nonetheless, this is now, for the first time ever,  an official  “entitlement.”

 In the swing state of Ohio, 1.1 million people have free cell phones. You, the working American, pay for these.

Wonder who many of these  folks will vote for? Feeling good about your labors today?

In addition to buying your own cell phone and paying for monthly usage, you are buying cell phones for the non-producers. And you are buying many other benefits as well, some for retirees and the truly needy.

Soon, you will be buying health care for 36 million more people who may not buy it on their own. They may receive a fine. They may not have the money to pay the fine. Many will require care.

Guess who picks up the tab? Or for the illegals using our educational, health care and social services? Witness the deficit in California.

Nonetheless, look at the income tax numbers. It is a progressive tax system, meaning that those who earn more tend to pay more.

Obama would like you to believe that people aren’t getting “a fair shot”, and the “rich” making over $250,000 per year aren’t paying their “fair share” and the successful are not “playing by the same rules.” The concept of “fair share” is never defined.

What is the evidence? Look at the income tax numbers. Does it look fair to you? Ask any 4th grader if these numbers are indeed fair?

The obvious answer is no they are not. But, such rhetoric is designed to stir up hatred of the economically successful. The “millionaires and billionaires” who get all the advantages! Outrageous!

This group includes Obama and many wealthy Democrats. A “good” rich person donates money to Obama’s campaign, so they are OK. A “bad” rich person donates to Romney, so they must be cheating in some undefined way.

In Obama’s math, a “millionaire” makes over $250K per year. Ask that same 4th grader if those numbers make sense.

So, why would you attack the taxpayer group that provides the entitlement dollars? The answer is that  Obama sees that money as having been “unjustly” accumulated.

In America, it is “unjust” to work hard?  Since when?

According to the IRS, less than 1% in any tax year become new millionaires by way of inheritance.

So the other 99% must be working to produce these income levels.

Somehow, the successful are seen as corrupt and unfair. After all, everyone is equal, so why should some enjoy greater life benefits? Where is the “social and economic justice?”  This is a time-worn slogan and goal of the radical left.

This hatred is systematically stoked by the Obama campaign. It creates a culture of blame. It is the foundational hatred required for class warfare and eventual violent conflict.

And class warfare ultimately produces a redistribution of wealth. Many see the dichotomy of the 1% versus the 99%. This was a central theme of the ineffective Occupy movement.

What many do not understand is that Obama regards the other 99% in the world as the truly exploited. His goal, cleverly disguised, is redistribution of American wealth to the disadvantaged, not just in America, but in the world.

Look at current United Nations initiatives, including a global sales tax, that he and Secretary of State Hillary Clinton now support. Rarely reported, right?

This is an astounding view for an American president, never before seen in our history. And most of us don’t get it because they hide it behind the facade of Obama The Likeable Moderate.

And many of us are just too numbed, turned off and confused by politics.

So, what is the deal with the Bush Tax Cuts, another phrase we hear?  Bush lowered taxes for all groups. When these were set to expire, Obama wanted to raise taxes on the “rich”, and keep taxes low for the “middle class, ” while also maintaining rates for lower-income earners.

A deal was made with Congress to preserve the Bush cuts until January 1, 2013 or after the November 6 election. Projections of the Obama “cuts” suggest the “rich” will pay more, once again punishing them for their “unfair” success.

However, the middle class of earners will bear 60% of the tax increases, according to the Congressional Budget Office. The average American family will lose $1000 per year out of their paycheck.

Many of us, in our anger at success, overlook these facts. The Obama machine, of course, denies them.

If one looks at candidate Romney’s tax proposal, rates are cut for all income earners. This is conveniently ignored by the mainstream media.

They prefer to focus on irrelevant comments by Romney. As dedicated leftists (84% of media have no church affiliation, 2% are practicing Catholics), they do their part to distort the challenger’s platform, while ignoring that of the president. Many are professional, well-paid deniers of fact.

So, whose proposal, if implemented, gives the greatest tax breaks to the most people? Take a minute to think about it.

Obama wishes to further punish corporations for their “unjust” accumulation of wealth and “exploitation of the people.”

In fact, many liberals despise business persons and corporations. They see profit as somehow evil.

Try running a business that does not make a profit in a rising cost environment. Or, in a flat revenue and rising taxes environment, how many more employees are you likely to hire? Answer? Zero.

In fact, you may lay off workers in your business to survive. How can you afford the cost of increased taxes in a down economic environment?

Paradoxically, many liberals also work for such entities, including members of the mainstream media. Somehow, this is OK. Are they exempt because of their inherently high-minded outlook?

You know,  Blue States versus Red States.

What about corporate tax rates? The US has the highest in the world. Would you want to keep or bring a manufacturing business here?

Japan has gone through at least a decade of no economic growth. This is known as “The Lost Decade.” They recently reduced their corporate tax rates. They had the highest in the world for any industrialized country.

The reason for these changes? Flat economic growth, increasing entitlements and a world economic slump. More entitlements equal low growth and equal fewer jobs for people.

We see the same pattern in the Western European entitlement societies. Many believe this is the model for which Obama strives. Entitlements have increased, economic growth has decreased and taxes have gone up to pay for entitlements.

When these entitlements are subject to reduction, note the riots in Greece and Spain.

The new socialist President of France, Hollande, intends to institute a tax rate of 75% on the high earners. Bye, bye entrepreneurs. Hello, France’s stagnant economy and high jobless rate.

Romney proposes a substantial reduction in corporate tax rates, along with the elimination of many, unspecified to date, tax loopholes. Obama criticizes loopholes, but has done nothing to remove them.

This is typically blamed on the Republicans, although Obama had a fully Democratic Congress in his first two years. Where was the Dream Act and Tax Reform then?

More blame. More class warfare. More appeal to baser instincts of blame and anger in the populace.

In the 2nd quarter, our economy grew at an anemic 1.3%, below the projected 1.7%. Last month alone, 1571 new government regulations were implemented. Tax rates are projected to increase if Obama is re-elected.

Is this combination good for job creation?

This is a formula for deadening an already weak economic recovery. It will not bring needed manufacturing  jobs into the US.

This is either a deliberate strategy to bankrupt our country (as previous socialists have done elsewhere), or an expression of cluelessness by the Obama administration.

Or both. Take your pick.

Why don’t we have a Fair Tax where everyone pays something, loopholes are eliminated and even those receiving entitlements have an investment in the process?

And why shouldn’t you keep the maximum amount of money as a reward for YOUR hard work? Why? To reward others for not producing?

Lower taxes provide more discretionary income, that is, you can spend it as you choose. Two thirds of our economy is consumer spending.

Won’t lower taxes stimulate demand, increased production, new jobs and greater spending? Won’t it produce more revenue for essential government programs?

Or, if your finances are tight, wouldn’t lower taxes give you more money to pay your bills? And reduce your stress?

If the Democrats and their leader truly represent the “middle class,” then why would they support higher taxes on everyone? Don’t be fooled. It is not just about taxing the rich, appealing though that may be to some.

So, these are some taxing questions indeed. A complex subject with some common sense answers.

We need to see through the emotionalism and better understand the factual issues involved. Hopefully, this column sheds some light on the issues of today, and the choices that lie ahead for us.

After all, it is OUR pocketbook and OUR future. Government is OUR servant, not our master.

 For some of us, we won’t be fooled (or fools) again!

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