Obama's New Flat Tax

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IRS Obama Simplified Flat Tax Form

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Obama's War on Prosperity Continues

As the Vice President makes no objection to the accusation that the Tea Party are terrorists, the real terror is being foisted on the American public by the Administration's ongoing War on Prosperity. Aided by his obedient Democratic soldiers in the United States Senate, Big Union Labor Leaders, and the National Press, the Obama Administration pursues it's frontal assault on the nation's economy and the those who would lift it out of malaise.

Before the debt ceiling bill, which no one on either side of the aisle nor Wall Street likes, was even signed Tim Geithner was busy heaping another massive $600 billion of debt upon our unsuspecting children and grandchildren, further insuring their indentured servitude for generations to come.

Then Yesterday, another General in the War on Prosperity, Ray LaHood mounted a fresh assault on the American Farmer, by proposing a new requirement that anyone operating farm machinery, even on their own farm, must hold a Commercial Driver's License. What possible rationale can there be for that, other than to make it increasingly difficult for the family farm to eek out an existence while they do their best to provide the rest of us with sustenance, and to give the government a greater hold on the means of food production in our country?

The front lines of the War on Prosperity are many and varied. By edict issued from the Commander in Chief, all health insurers are now required to provide, free of charge, birth control and other reproductive services to all insured women. After the ObamaCare takeover of the entire health care system is complete, this edict will encompass all women. By requiring all insurers to now cover the co-pays for these services, Mr. Obama has increased the cost of health insurance for everyone, and made it just that much harder for any employer to hire additional employees.

The ObamaCare munition in the War on Prosperity has already taken its toll on tanning salons, some 3100 of whom have closed their doors resulting in the loss of 24,000 jobs. This due to a ten percent tax on tanning. The law continues to provide tremendous uncertainty for those who would like to hire, but find it impossible to compute the cost of doing so, and therefore do not.

Another front is lead by Big Labor, with heavy supporting fire from the National Labor Relations board. The NLRB is currently obstructing the hiring of thousands of manufacturing workers in South Carolina. At issue is the expansion of a Boeing Manufacturing plant in that state. Boeing wants to hire, workers want to work and the jobs are good high paying jobs, but the NLRB stands squarely in the way because of the workers right to choose against union membership in that state.

Meanwhile, the battalion lead by GE CEO Jeff Immelt, the Director of the administration's job council, has sent his corporation's medical unit to China, along with that unit's manufacturing jobs.

Leading the PR campaign in the War on Prosperity are the national press who either ignore the devastating effects this Administration's policies are having on our economy, or defend them.

On the science and technology front, NASA's space shuttle program has been brought to a halt, costing another nine to thirty thousand good jobs, and killing an unknowable quantity scientific and technological advances the program may have continued to produce.

The environmental army, meanwhile, pushes it's advance on the energy producers, preventing the mining of coal, the completion of pipelines, and the production of oil. This front, by far the largest against the unemployed is estimated to be preventing the creation of over a million jobs. From light bulbs, to low flow toilets, to washing machines, the EPA continues to lob grenades at manufacturers of every kind of good they can think of. It is estimated that their recent new CAFE standards requiring automobile manufacturers to produce cars averaging over 50 miles per gallon will cost another 200,000 jobs.

Why is this Administration waging the War on Prosperity? What they say is that “Millionaires, Billionaires, Private Jet Owners and Oil Companies should pay their fair share” of the tax burden. The fact that the top 10% of Income Tax payers already pay 70% of the Income Tax, and the bottom 47% pay no Income Tax makes no difference to them, because who pays the tax is not what they mean by “fair”. What they mean by fairness is sameness. In other words, everyone should have the same amount of goods and services. Unfortunately, the only way to achieve sameness is to lower everyone to the least common denominator. All socialist philosophy works that way in practice. The problem is that it doesn't work. It requires that the means of production be eventually transferred to the state. And all work be performed for the state, and that compensation be equal for everyone. That is what the War on Prosperity is designed to do. Rather than echo John F. Kennedy's proclamation that a rising tide lifts all boats, the Obama regime has decided to lower all boats to the bottom to achieve equality. Unfortunately we will be equally poor and disenfranchised. This philosophy fails to take human nature into account. Humans are by their nature competitive, and some will always rise above others. The difference between free market capitalism and socialism is that the latter requires force for the elite to rise to and maintain their power, while the former requires ingenuity.

No wonder those on the left see the Tea Party as terrorists. They ARE terrified. As more and more of the American public figure out what the left is up to, the left begins to lose their ability to further enslave them. Just as King George viewed Madison, Jefferson, Washington, and Paine as revolutionaries, so must the Washington elite view the Tea Party. The Tea Party wants the same thing that those early patriots did, freedom from tyranny!

Where Does the Buck Stop?

Last night we heard the President of the United States once again take to the microphone and lecture us about the debt crisis. While I listened very carefully to what he said, I was saddened. It was little different from many speeches he has given recently with no plan, no new information, and very little truth.

There was a time in America when we were proud of the leader of our country. There was a time when, rightly or wrongly, we trusted what he said. There was a time when we could tell our children to be inspired by his words, to look up to him and aspire to the quality of his character.

It is no longer that time. Our country has a serious problem. We are spending our children into indentured servitude, slavery as it were. We are digging for them a hole from which they will find it impossible to extract themselves. Everyone knows this, it is self-evident.

A man with integrity, with strength of character, a man of leadership, would take bold action. He would acknowledge the elephant in the room and recognize that when one finds one's self at the bottom of a deep hole, the wise course is to stop digging.

What did we hear from our President last night? First of all, blame Bush. Nothing new here. Second, scare people. He once again threatened senior citizens by offering to withhold their Social Security checks. The problem is that threat is an outright lie, and designed only to maintain a hold on his power, and to urge us to let him make the hole deeper with a backhoe, rather than a shovel. How am I to teach my daughter the value of honesty when the President of the United States knows very well that he cannot stop the Social Security payments, even if he wanted to. There are 2.6 trillion dollars of treasury notes in the Social Security trust fund. Those treasury notes are already there, and are not affected by the debt ceiling. Mr. Obama knows that they can be negotiated in order to pay our seniors, and that the law requires him to do so.

He threatens default on our debt, when he also knows full well that there is more than enough money coming into the treasury on a monthly basis to service our debt, pay our soldiers, and cover our most pressing obligations.

There is no integrity in this man. He is concerned with his own political future, period. How can I point to the Office of the President of The United States, and tell my daughter how great this country is? How can I talk about the principals which made America the most desirable place in the world to live, when we have such a blatant ego-maniacal liar for our leader?

He has offered no plan. He has obstructed every sensible plan offered. He has stood squarely in front of every effort of business to grow our economy, from denying permits for oil and coal exploration, to blocking manufacturing plant expansion, to taxing tanning salons out of business.

So we should hand him a larger shovel, a mechanized shovel with which to bury us and our posterity? Should we allow this man to heap further debt upon the heads of our children while continuing to limit their opportunities for the future? Should we sell our children into never ending servitude to a government whose leader cannot muster up the intellectual honesty to admit he might be wrong about anything?

I say NO! I say not while I still have the ability to speak for the lovely young woman who is my daughter! This is my country. I earned the money the federal leviathan extracts from my pocket every two weeks. It is NOT your money Mr. President. I do NOT agree to make the payments on the debt you wish to incur on behalf of my daughter and me. Many brave souls gave their lives to extract themselves and their descendants from the yoke of Tyranny and if it becomes necessary, many more will. If the buck will not stop with you Mr. President, then I say the buck stops here, with me and mine!

Stop the Senate from Handing a Blank Check to Obama!

Well, folks, I am sorry to report that the fix is in. The Senate, in back room dealing, appears to be prepared to hand President Obama a blank check to spend our children's as of yet unearned money any way he pleases, to the tune of an additional 2.5 TRILLION dollars.

I listened to John McCain yesterday on the Sean Hannity show, and he all but said as much! Mr. Hannity was asking repeatedly about cut, cap and balance, and McCain said he was going to fight for it, but then consistently argued for the McConnell plan. He barley gave lip service to cut, cap and balance, and got angry when Hannity pressed him about the McConnell plan. McCain said it was a last resort, but then continued over and over again to argue it's merits. Heaven help us!

In making my calls to Senate offices yesterday afternoon, my impression did not change. Republican staffers with whom I spoke, seemed to be hedging when I brought up the McConnell plan and my opposition to it. The Democrats staffers just gave me the “yeah, yeah I'll pass your message on” routine.

McCain told Hannity that his office had been flooded with calls from seniors who were frightened by the Obamascare campaign. The fact that the Administration could not stop social security checks from going out, even if they wanted to, because of the way the Social Security Administration's computers are programed, didn't get in McCain's way. Our only course has to be action!

If these Senators' offices are overwhelmed with calls from concerned citizens like you and me, we might have a slim chance of beginning to free our children from the slavery and tyranny being foisted upon them by our so-called representatives.

Given the fact that ICE is busily shutting down blogs and seizing domain names, I don't know how long we will have the opportunity to speak in opposition to this Administration's ongoing power grab and usurpation of the rights with which we were endowed by our creator!

I urge anyone who is interested in freedom, in life, liberty, and the pursuit of happiness to call as many Senators as possible and voice strong opposition to Senator McConnell's plan to hand over a blank check to the President, so he can spend as many of our children's hard earned dollars as he chooses! Do it today! Do it now! Time is running out for our beloved nation!

Akaka, Daniel K. - (D - HI)

(202) 224-6361

Web Form: akaka.senate.gov/email-senator-akaka.cfm

Alexander, Lamar - (R - TN)

(202) 224-4944

Web Form: alexander.senate.gov/public/index.cfm?p=Email

Ayotte, Kelly - (R - NH)

(202) 224-3324

Web Form: ayotte.senate.gov/?p=contact

Barrasso, John - (R - WY)

(202) 224-6441

Web Form: barrasso.senate.gov/public/index.cfm?FuseAction=ContactUs...

Baucus, Max - (D - MT)

(202) 224-2651

Web Form: baucus.senate.gov/contact/emailForm.cfm?subj=issue

Begich, Mark - (D - AK)

(202) 224-3004

Web Form: begich.senate.gov/public/index.cfm?p=EmailSenator

Bennet, Michael F. - (D - CO)

(202) 224-5852

Web Form: bennet.senate.gov/contact/

Bingaman, Jeff - (D - NM)

(202) 224-5521

Web Form: bingaman.senate.gov/contact/

Blumenthal, Richard - (D - CT)

(202) 224-2823

Web Form: blumenthal.senate.gov/contact/

Blunt, Roy - (R - MO)

(202) 224-5721

Web Form: blunt.senate.gov/public/index.cfm/contact

Boozman, John - (R - AR)

(202) 224-4843

Web Form: boozman.senate.gov/public/index.cfm/e-mail-me

Boxer, Barbara - (D - CA)

(202) 224-3553

Web Form: boxer.senate.gov/en/contact/

Brown, Scott P. - (R - MA)

(202) 224-4543

Web Form: scottbrown.senate.gov/public/index.cfm/emailscottbrown

Brown, Sherrod - (D - OH)

(202) 224-2315

Web Form: brown.senate.gov/contact/

Burr, Richard - (R - NC)

(202) 224-3154

Web Form: burr.senate.gov/public/index.cfm?FuseAction=Contact.Conta...

Cantwell, Maria - (D - WA)

(202) 224-3441

Web Form: cantwell.senate.gov/contact/

Cardin, Benjamin L. - (D - MD)

(202) 224-4524

Web Form: cardin.senate.gov/contact/

Carper, Thomas R. - (D - DE)

(202) 224-2441

Web Form: carper.senate.gov/contact/

Casey, Robert P., Jr. - (D - PA)

(202) 224-6324

Web Form: casey.senate.gov/contact/

Chambliss, Saxby - (R - GA)

(202) 224-3521

Web Form: chambliss.senate.gov/public/index.cfm?p=Email

Coats, Daniel - (R - IN)

(202) 224-5623

Web Form: coats.senate.gov/contact/

Coburn, Tom - (R - OK)

(202) 224-5754

Web Form: coburn.senate.gov/public/index.cfm/contactsenatorcoburn?p...

Cochran, Thad - (R - MS)

(202) 224-5054

Web Form: cochran.senate.gov/email.html

Collins, Susan M. - (R - ME)

(202) 224-2523

Web Form: collins.senate.gov/public/continue.cfm?FuseAction=Contact...

Conrad, Kent - (D - ND)

(202) 224-2043

Web Form: conrad.senate.gov/contact/webform.cfm

Coons, Christopher A. - (D - DE)

(202) 224-5042

Web Form: coons.senate.gov/contact/

Corker, Bob - (R - TN)

(202) 224-3344

Web Form: corker.senate.gov/public/index.cfm?p=ContactMe

Cornyn, John - (R - TX)

(202) 224-2934

Web Form: cornyn.senate.gov/public/index.cfm?p=ContactForm

Crapo, Mike - (R - ID)

(202) 224-6142

Web Form: crapo.senate.gov/contact/email.cfm

DeMint, Jim - (R - SC)

(202) 224-6121

Web Form: demint.senate.gov/public/index.cfm?p=ContactInformation

Durbin, Richard J. - (D - IL)

(202) 224-2152

Web Form: durbin.senate.gov/public/index.cfm/contact

Enzi, Michael B. - (R - WY)

(202) 224-3424

Web Form: enzi.senate.gov/public/index.cfm/contact?p=e-mail-senator...

Feinstein, Dianne - (D - CA)

(202) 224-3841

Web Form: feinstein.senate.gov/public/index.cfm?FuseAction=ContactU...

Franken, Al - (D - MN)

(202) 224-5641

Web Form: franken.senate.gov/?p=contact

Gillibrand, Kirsten E. - (D - NY)

(202) 224-4451

Web Form: gillibrand.senate.gov/contact/

Graham, Lindsey - (R - SC)

(202) 224-5972

Web Form: lgraham.senate.gov/public/index.cfm?FuseAction=Contact.Em...

Grassley, Chuck - (R - IA)

(202) 224-3744

Web Form: grassley.senate.gov/contact.cfm

Hagan, Kay R. - (D - NC)

(202) 224-6342

Web Form: hagan.senate.gov/?p=contact

Harkin, Tom - (D - IA)

(202) 224-3254

Web Form: harkin.senate.gov/contact.cfm

Hatch, Orrin G. - (R - UT)

(202) 224-5251

Web Form: hatch.senate.gov/public/index.cfm/contact?p=Email-Orrin

Heller, Dean - (R - NV)

(202) 224-6244

Web Form: heller.senate.gov/contact_form.cfm

Hoeven, John - (R - ND)

(202) 224-2551

Web Form: hoeven.senate.gov/public/index.cfm/email-the-senator

Hutchison, Kay Bailey - (R - TX)

(202) 224-5922

Web Form: hutchison.senate.gov/?p=email_kay

Inhofe, James M. - (R - OK)

(202) 224-4721

Web Form: inhofe.senate.gov/public/index.cfm?FuseAction=Contact.Con...

Inouye, Daniel K. - (D - HI)

(202) 224-3934

Web Form: inouye.senate.gov/Contact/ContactDKI.cfm

Isakson, Johnny - (R - GA)

(202) 224-3643

Web Form: isakson.senate.gov/contact.cfm

Johanns, Mike - (R - NE)

(202) 224-4224

Web Form: johanns.senate.gov/public/?p=ContactSenatorJohanns

Johnson, Ron - (R - WI)

(202) 224-5323

Web Form: ronjohnson.senate.gov/public/index.cfm/contact

Johnson, Tim - (D - SD)

(202) 224-5842

Web Form: johnson.senate.gov/public/index.cfm?p=Contact

Kerry, John F. - (D - MA)

(202) 224-2742

Web Form: kerry.senate.gov/contact/

Kirk, Mark - (R - IL)

(202) 224-2854

Web Form: kirk.senate.gov/?p=contact

Klobuchar, Amy - (D - MN)

(202) 224-3244

Web Form: klobuchar.senate.gov/emailamy.cfm

Kohl, Herb - (D - WI)

(202) 224-5653

Web Form: kohl.senate.gov/contact.cfm

Kyl, Jon - (R - AZ)

(202) 224-4521

Web Form: kyl.senate.gov/contact.cfm

Landrieu, Mary L. - (D - LA)

(202) 224-5824

Web Form: landrieu.senate.gov/about/contact.cfm

Lautenberg, Frank R. - (D - NJ)

(202) 224-3224

Web Form: lautenberg.senate.gov/contact/routing.cfm

Leahy, Patrick J. - (D - VT)

(202) 224-4242

Web Form: leahy.senate.gov/contact/

Lee, Mike - (R - UT)

(202) 224-5444

Web Form: lee.senate.gov/public/index.cfm/contact

Levin, Carl - (D - MI)

(202) 224-6221

Web Form: levin.senate.gov/contact/

Lieberman, Joseph I. - (ID - CT)

(202) 224-4041

Web Form: lieberman.senate.gov/index.cfm/contact/email-me-about-an-...

Lugar, Richard G. - (R - IN)

(202) 224-4814

Web Form: lugar.senate.gov/contact/

Manchin, Joe, III - (D - WV)

303 HART SENATE OFFICE BUILDING WASHINGTON DC 20510

(202) 224-3954

Web Form: manchin.senate.gov/contact_form.cfm

McCain, John - (R - AZ)

(202) 224-2235

Web Form: mccain.senate.gov/public/index.cfm?FuseAction=Contact.Con...

McCaskill, Claire - (D - MO)

(202) 224-6154

Web Form: mccaskill.senate.gov/?p=contact

McConnell, Mitch - (R - KY)

(202) 224-2541

Web Form: www.mcconnell.senate.gov/public/index.cfm?p=contact

Menendez, Robert - (D - NJ)

(202) 224-4744

Web Form: menendez.senate.gov/contact/

Merkley, Jeff - (D - OR)

(202) 224-3753

Web Form: merkley.senate.gov/contact/

Mikulski, Barbara A. - (D - MD)

(202) 224-4654

Web Form: mikulski.senate.gov/contact/

Moran, Jerry - (R - KS)

(202) 224-6521

Web Form: moran.senate.gov/public/index.cfm?p=e-mail-jerry

Murkowski, Lisa - (R - AK)

(202) 224-6665

Web Form: murkowski.senate.gov/public/index.cfm?p=Contact

Murray, Patty - (D - WA)

(202) 224-2621

Web Form: murray.senate.gov/email/index.cfm

Nelson, Ben - (D - NE)

(202) 224-6551

Web Form: bennelson.senate.gov/contact-me.cfm

Nelson, Bill - (D - FL)

(202) 224-5274

Web Form: billnelson.senate.gov/contact/index.cfm

Paul, Rand - (R - KY)

(202) 224-4343

Web Form: paul.senate.gov/?p=contact

Portman, Rob - (R - OH)

(202) 224-3353

Web Form: portman.senate.gov/contact_form.cfm

Pryor, Mark L. - (D - AR)

(202) 224-2353

Web Form: pryor.senate.gov/public/index.cfm?p=ContactMe

Reed, Jack - (D - RI)

(202) 224-4642

Web Form: reed.senate.gov/contact/contact-share.cfm

Reid, Harry - (D - NV)

(202) 224-3542

Web Form: reid.senate.gov/contact/index.cfm

Risch, James E. - (R - ID)

(202) 224-2752

Web Form: risch.senate.gov/public/index.cfm?p=Email

Roberts, Pat - (R - KS)

(202) 224-4774

Web Form: www.roberts.senate.gov/public/index.cfm?p=EmailPat

Rockefeller, John D., IV - (D - WV)

(202) 224-6472

Web Form: rockefeller.senate.gov/contact/email.cfm

Rubio, Marco - (R - FL)

(202) 224-3041

Web Form: rubio.senate.gov/public/index.cfm/contact

Sanders, Bernard - (I - VT)

(202) 224-5141

Web Form: sanders.senate.gov/contact/

Schumer, Charles E. - (D - NY)

(202) 224-6542

Web Form: schumer.senate.gov/Contact/contact_chuck.cfm

Sessions, Jeff - (R - AL)

(202) 224-4124

Web Form: sessions.senate.gov/public/index.cfm?FuseAction=Constitue...

Shaheen, Jeanne - (D - NH)

(202) 224-2841

Web Form: shaheen.senate.gov/contact/

Shelby, Richard C. - (R - AL)

(202) 224-5744

Web Form: shelby.senate.gov/public/index.cfm/emailsenatorshelby

Snowe, Olympia J. - (R - ME)

(202) 224-5344

Web Form: snowe.senate.gov/public/index.cfm/contact?p=email

Stabenow, Debbie - (D - MI)

(202) 224-4822

Web Form: stabenow.senate.gov/?p=contact

Tester, Jon - (D - MT)

(202) 224-2644

Web Form: tester.senate.gov/Contact/index.cfm

Thune, John - (R - SD)

(202) 224-2321

Web Form: thune.senate.gov/public/index.cfm/contact

Toomey, Patrick J. - (R - PA)

(202) 224-4254

Web Form: toomey.senate.gov/?p=contact

Udall, Mark - (D - CO)

(202) 224-5941

Web Form: markudall.senate.gov/?p=contact

Udall, Tom - (D - NM)

(202) 224-6621

Web Form: tomudall.senate.gov/?p=contact

Vitter, David - (R - LA)

(202) 224-4623

Web Form: vitter.senate.gov/public/index.cfm?FuseAction=Contact.Con...

Warner, Mark R. - (D - VA)

(202) 224-2023

Web Form: warner.senate.gov/public/index.cfm?p=Contact

Webb, Jim - (D - VA)

(202) 224-4024

Web Form: webb.senate.gov/contact.cfm

Whitehouse, Sheldon - (D - RI)

(202) 224-2921

Web Form: whitehouse.senate.gov/contact/

Wicker, Roger F. - (R - MS)

(202) 224-6253

Web Form: wicker.senate.gov/public/index.cfm?FuseAction=Contact.EMa...

Wyden, Ron - (D - OR)

(202) 224-5244

Web Form: wyden.senate.gov/contact/

Fixing the Deficit All by Myself

In the current debt ceiling and deficit talks, one of the major things missing is talk about growth. If Mr. Obama is so intent on raising revenue, he could do it all by himself. Taxing oil companies seems to be high on his priority list. All he has to do to generate more revenue from both oil and coal producers is to let them produce!

According to Fineberg Research in 2006, the Federal Government collects about $0.47 for every barrel of oil produced in the US. With approximately two trillion barrels of oil proven, but untapped oil, that represents almost a trillion dollars of untapped revenue. The oil isn't being produced due largely to regulation from the EPA and the Obama administration. In addition to the direct revenue from the “evil” oil companies, this untapped reserve also represents thousands and thousands of jobs. These jobs are not just directly in the oil fields, but would be created by supporting the new oil field hires. They all would have more money to spend on consumer items, a boon for the local economies where the oil is located, and a boon for the unemployment rate.

I'm going to lose points with this one, I know, but here goes. The National Marijuana market is estimated to be about 100 Billion dollars per year. It is rather silly to argue about the health risks of Marijuana, when alcohol is perfectly legal and is the third leading cause of lifestyle related deaths behind tobacco and obesity. The revenue derived from legalizing it would be significant, not enough to solve the deficit problem, but again it would create thousands of jobs, and people who work pay taxes. Farmers, farm machinery manufacturers, and merchants would all benefit from its legalization.

Get the NLRB and other regulators to back off. Boeing is trying to create thousands of high-paying jobs in manufacturing, but Obama's NLRB is stopping them. This is a real shame, especially since aircraft are one of our major exports.

Repeal Obamacare and save $1.2 trillion instantly! In addition to the instant savings, this one measure alone would release trillions of dollars in pent up capital. Business would feel more confident about expanding their operations, and entrepreneurs would feel more confident about going into business. The tanning tax alone has already cost 24,000 jobs and closed 3100 small businesses.

Growing GDP by just 5% per year would add $100 billion to the revenue stream, and an unemployment rate of 6% would more than double that!

Yes, Medicare, Medicaid and Social Security need to be addressed, soon, and with common sense. But there are solutions to our deficit problems which should be implemented with all due haste, and none of them have to do with changing the depreciation rate on private jets!

Dirty Little Secret About the Budget

The US Government cannot pay it's bills. The credit card is maxed out. The Administration, Wall Street, and many of the Democrats in the House and Senate are begging for a credit limit increase on our collective Visa card known as the debt ceiling.

The Republican party, particularly the Tea Party wing, are insisting on very real budget cuts without tax increases, before they will consider any debt limit increase. In addition, they are demanding an amendment to the Constitution that requires a balanced budget. Why this insistence on cuts and other measures to be sure of lower spending prior to allowing the government to borrow more money? Because the one thing Congress, and especially this Administration, never does is spend less money. The Democrats are telling everyone that the must have tax increases on the “Rich” in addition to spending cuts to begin to bring our budget into balance. The “millionaires and billionaires” must pay their fair share and share some sacrifice they tell us. There are several problems with this statement, however. First of all, they are not really talking about millionaires and billionaires. There isn't enough money there. What they are talking about is wage earners who make over $200,000 per year filing separately, or $250,000 if filing jointly. According to the IRS, in 2008 3.4 million taxpayers reported adjusted gross incomes between $200,000.00 and $500,000.00.

According to the IRS, in 1992, the top 20% of wage earners paid 65% of the income tax. In 2001, when the top rate was 39.5% the top 10% of wage earners paid 64% of the income tax, and in 2008 when the top rate was 35%, the top 10% of wage earners paid 70% of the tax. The threshold for this 10% is an adjusted gross income of $113,799.00 per year. That is not what I would call excessively rich. The interesting thing about this is that the bottom 50% pay 3% of the tax, meaning that the other 40% of taxpayers with adjusted gross income between $33,048.00 and $113,798.00 pay 27% of the total income tax collected by the IRS. The percentage of tax paid by the bottom 50% has been steadily DECREASING since 2001. Federal Revenues have fluctuated from 2.0 trillion to 2.56 trillion in the years 2005 through 2010, peaking at 2.56 trillion in 2007, and dropping to 2.16 trillion in 2010. Spending, however, has steadily increased from 2.4 trillion per year in 2005 to 3.8 trillion per year estimated in 2011. The question we REALLY need to be asking, is where has that extra TRILLION dollars per year since 2008 gone?


The dirty little secret is this, in 2008 we were told that we had to pass a temporary stimulus package of nearly a trillion dollars to keep the unemployment rate below 8%. The money, we were told, would be spent on “shovel ready” projects which would put people back to work. Since then the unemployment rate peaked at over 10%, dropped down to 8.9% and has now risen back to 9.2%. Real economic growth has stagnated at a meager 1.8%, and our national debt has grown to nearly 15 trillion dollars, or 102% of GDP.

The secret is that this stimulus money isn't temporary. While the democrats claim that they can't cut the budget without throwing grandma out into the street, or starving children with autism or some such other gut wrenching evil, the fact is that 861 billion dollars is simply an increase in spending in several programs over the 2007 levels. (data obtained from the Government Printing Office). The level of spending was too high then. Granted some of the increase is in Medicare, Medicaid, Social Security and Unemployment benefits, and those programs must be addressed, but I don't recall too many stories in the national press about folks starving in the streets in 2007. Government spending equals power in Washington DC, and those folks are loath to give up any power, so the spending, and the borrowing from our children and grandchildren continues unabated.

Serious Blog Alert! Our Government's Purse is Full Enough!

Our government does not tax too little, it spends too much.

In response to a “call congress” campaign to voice objection to a debt limit increase without a balanced budget amendment, real significant cuts in spending, and no tax increases, I received several standard “tax the evil rich” responses. In one response, a friend of mine stated that per capita GDP has increased throughout the economic meltdown. While it is true that GDP increased in 2007 and 2008, all be it at a very slow pace, GDP actually dropped in 2009 according to the Bureau of Economic Analysis. That being said, this “tax the rich” philosophy beg the questions how much is enough, and who is it that you consider rich? Leaving aside the fact that if you confiscated the ENTIRE wealth of the fifty richest people in the US (many of whom are democrats by the way i.e. Gates, Buffett, Ellison, Bloomberg, Page, Brin, Soros, Perelman, etc.), you get about 650 billion dollars (figures from Forbes Magazine). That is not even enough to make up half the deficit in this year's budget.

The current top rate for wage earners is 35% which cuts in at $379,150.00 of taxable income. My dear friend states that this is the lowest rates have been since shortly after the great depression. The fact is, however, that in 1992, the top rate was 31%. Be that as it may, let's explore this idea of taxing the rich some more. In 1992, the top 20% of wage earners paid 65% of the income tax. In 2001, when the top rate was 39.5% the top 10% of wage earners paid 64% of the income tax, and in 2008 when the top rate was 35%, the top 10% of wage earners paid 70% of the tax. The threshold for this 10% is an adjusted gross income of $113,799.00 per year. That is not what I would call excessively rich. The interesting thing about this is that the bottom 50% pays 3% of the tax, meaning that the other 40% of taxpayers with adjusted gross income between $33,048.00 and $113,798.00 pay 27% of the total income tax collected by the IRS. The percentage of tax paid by the bottom 50% has been steadily DECREASING since 2001. Federal Revenues have fluctuated from 2.0 trillion to 2.56 trillion from 2005 through 2010, peaking at 2.56 trillion in 2007, and dropping to 2.16 trillion in 2010. Spending, however, has steadily increased from 2.4 trillion/year in 2005 to 3.8 trillion/year estimated in 2011. The question we REALLY need to be asking, is where has that extra TRILLION dollars per year since 2008 gone? In 2009, 2010, and projected for 2011, we have spent an EXTRA trillion dollars more per year that we did in all the years gone before. Even under George Bush, who spent money like a drunken sailor, mostly on war toys, we weren't spending at anywhere close to the rate we are now. Were children starving in 2008? Were old people going without food, clothing and housing in 2008? I don't remember that. I don't remember autistic children starving in the street in 2008, do you?

So where did the money go? 28 billion dollars of it went to GE for high speed rail no one will ride. 0.5 billion for cash for clunkers, 10.6 billion for first time home buyers, 9.2 billion for child tax credits (one reason the bottom 50% pay a smaller share of the tax), 186 billion for grants to states to fund pensions, Medicaid and unemployment, 82 billion to the Department of Education and National Science Foundation (shrimp on treadmills program), 25 Billion to the Department of Energy and the Environmental Protection Agency, the list goes on and on. Of the 2.4 million jobs the administration has claimed to have “saved or created” each job cost $278,000.00 in stimulus money to create or save. That is a fairly expensive way to create and save jobs, which brings me to corporate taxation.

The current corporate tax rate is 35%. When a corporation is creating a budget for coming years, one thing it must take into account is its tax liability. Along with the costs of labor, raw materials, fixed operating costs and the like, they also estimate their tax liability. When a corporation decides how much to charge for its product or service, it must take its tax liability into account. If taxes go up, the price of the good or service goes up accordingly. That means the only thing increasing corporate tax rates, or capital gains rates for that matter, does is pass that tax on to the consumer. When tax rates are unreasonably high in comparison to rates in another state or another country, it provides an incentive for a corporation to move to another state or country. Please take note of the mass exodus of companies from New York, Michigan and California and the gain in Texas. We currently have the second highest corporate tax rate in the world, which explains why GE, our President's favorite corporation, moved much of its operations offshore, and paid NO corporate tax in 2010.

With all that said, it becomes clear that we do not tax too little, we spend too much. The only result we will get from raising top tax rates, is that we will shift an even higher burden on to those carrying 70% of the weight now, and diminish economic activity, pushing corporations overseas, and putting increasing strain on an overwhelmingly thin job market. With 9.1% unemployment, and REAL unemployment (including those who have given up looking) over 15%, the last thing that makes sense from an economic point of view is increase the burden on those who are carrying the bulk of the weight now. Anyone who has a sound background in market economics will say the same thing.

Finally, President Obama attacked private jet owners, saying they should lose the tax break that his administration gave them early in his term. This “break” allows a company to depreciate the cost of an airplane, or improvements to an airplane, over a period of five years instead of seven. For those of you without a background in accounting, depreciation is expensing a purchase over a period of time. If a company leases a car, for example, the monthly lease payment is an expense, and is subtracted from the company's income before tax is calculated on that income. If the company purchased the car instead of leasing it, the price of the car, minus it's expected value after seven years, has to be divided by the number of years (seven in this case) and 1/7th of that value is expensed from each year's income before tax is calculated. The only thing changing the length of depreciation for an airplane does is make the company either less likely to buy or refurbish an airplane, or extend the period of time in between such purchases. The reason the depreciation period was shortened in the first place, was to save airplane manufacturing jobs by encouraging companies to trade their planes in faster. Now we want to slow down the turnover of airplanes and put those jobs in jeopardy?

There is no clearer example of this kind of thinking as when George Herbert Walker Bush went along with the luxury tax in 1990. The reasoning was the same. It went like this; “When people are hurting, and need jobs, why shouldn't the rich pay a little more. They are buying yachts and other luxury items, like diamond rings, and we ought to put an extra tax on those items.” Against his better judgment Bush 41 went along with congress on that one. The actual effect though, as one might guess, is that “rich” people quit buying yachts, or bought them offshore. The net effect was that revenues went down, and 200,000 people who worked in the boat building industry lost their jobs. Ultimately it cost Bush the 1992 election.

If you still think “tax the rich” is a good idea, I would encourage you to read anything by Allan Meltzer, Professor of Economics at CMU, Milton Friedman, Nobel Prize winner in Economic Science and Professor of Economics at the University of Chicago, or Ayn Rand for that matter. Rather than take money from the folks in this country who work hard, create business, and create employment for the rest of us just so we can give it to other folks to see what happens when a shrimp gets some exercise, we ought to stop the excessive spending. We should fix our long term problem of unfunded liabilities for Medicaid, Medicare, and Social Security in a way that protects our seniors, and insures our safety net exists long into the future. That way we can let business get back to work doing what they do best, which is grow our economy!