I came across a book (a series of articles really) written by members of “The Progressive Ideas Network”. The following paragraph is from the Forward of that book:
“For the past three decades, America has become a more precarious place for most of its citizens. Government has done less, when it should have done more. As corporations have ceased to provide reliable jobs, wages, health care, or retirement security, government has failed to step into the vacuum. As women as well as men have joined the workforce in large numbers, government policy has failed to address the needs of children and families. As carbon-based energy has become less reliable and more of a menace to the planet, government has failed to help develop alternatives. And as government has defaulted on these and other pressing challenges, people have tended to give up on the promise of democracy.”
So what is their answer to these “pressing challenges”? That’s right! MORE GOVERNMENT!
Again a quote from “Thinking Big”:
“The best thing about Thinking Big is the way it connects the dots. Larry Mishel and Nancy Cleeland discuss how government is indispensable to redeeming an economy of shared prosperity. If government can pull America back from the brink of depression, the same public investment so urgently needed for macroeconomic purposes can also make the economy fairer and more secure.”
Their answer to the problem of governments, repeated, failure to improve even a single aspect of American life, is to increase the size and scope of that same, failed, government; they believe that “government is indispensable”!
My fellow Americans, I’m here to tell you, your founding fathers created a governmental structure, in the very heart and soul of the constitution they produced, that, in fact, mandates that same government must be dispensable!
“There is not in the whole science of politicks a more solid or a more important maxim than this--that of all governments, those are the best, which, by the natural effect of their constitutions, are frequently renewed or drawn back to their first principles” – James Wilson one of many of the “forgotten” founding fathers!
http://www.heritage.org/Research/Reports/2009/06/Justice-Law-and-the-Creation-of-the-American-Republic-The-Forgotten-Legacy-of-James-Wilson
We have reached such a point in history. It is time to draw back and renew our country’s direction. We’ve been lulled to sleep by a concerted effort by the left to move public opinion and even morality in the direction of communism and godlessness. A process described by Joseph Overton in 1960 and referred to as "The Overton Window" and it's being used to change the way you think!
http://en.wikipedia.org/wiki/Overton_window
The left has been in an all-out, full frontal attack on the American way of life ever sense the very conception of communism! They have set as their goal to infiltrate the highest levels of our government and military. They’ve moved to change the very history books our children read so as to paint history in a “progressive light”. They, regularly, seek to undermine our morality through the slow but assured progress of the entertainment industry. What is considered “PG-13” today, could very well have been considered pornographic just a generation ago. They seek to eliminate God from our government, our schools and eventually from our churches ( many have already kicked him out ).
You, your family and your way of life have been under attack since before you were likely even born. It is time, America, to wake up. It’s time to stand up. It’s time to fight!
If you don’t ( or can’t ) believe me that you and your way of life is under attack, you must read this:
http://www.rense.com/general32/americ.htm
It is a list of 45 declared goals for the communist take over of America. It was written in 1963, 3 years before this writer was born.
Many of you likely saw the very popular movie “The Matrix”. In it, the primary character Neo is given a choice, take the red pill and learn the secrets of the matrix, take the blue pill and go back to his existence as he knows it. Thankfully, for the betterment of all mankind the hero, Neo, takes the red pill and finds that he’s been living in what is in essence a dream world made up of a computer generated “Matrix”. He finds that he, and the rest of the human race, is no more than a power supply for a group of futuristic machines that had long ago taken over and now needed a source of energy. Humans were placed, side by side row upon row stacked one on top of the other and all connected directly to the power grid and of course the matrix. Men had become the power source for machines that ruled the world.
Tonight, when you get home from your 9-5 job and you hit that little remote tucked up under the sun visor of your car, before you pull into your garage pause for a moment and consider this article. Take a look at your street? Is it not row upon row of cubicles stacked one upon the other? The majority of Americans live on their 100’x130’ little slice of the American pie! In their 3 Bedroom 2 Bath home with 2.5 kids a dog and a cat. Many, if not most, don’t even know the last name of the person who lives 2 doors down (many not even the guy next door). We’ve become batteries for the political machine. We go to work, pay our taxes and all the while we’re sleeping! Our taxes are the energy they need to keep us under their control! It is a system designed to keep you ( the power source ) in line ( or on line ).
The Matrix is a system, Neo. That system is our enemy. But when you're inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save. But until we do, these people are still a part of that system and that makes them our enemy. You have to understand, most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it. -- Morpheus
I know what you're thinking, 'cause right now I'm thinking the same thing. Actually, I've been thinking it ever since I got here: Why oh why didn't I take the BLUE pill? -- Cypher
It’s time to wake up America! It's time to take your medicine, it's time for THE RED PILL!
My thoughts on the state of our union; and other things that matter to me.
Tuesday, June 29, 2010
Monday, June 28, 2010
Tax & Spend Economics NEVER work!
You have wants and desires, things you’d love to do, places you’d love to see and things you’d love to own. But, you have a small, nagging problem. Your income does not quite live up to your desires and so, like so many Americans, you’ve run up a huge personal debt. Suddenly, you find that you’ve lost your income and cannot pay the minimum monthly payments on your credit cards; what do you do? The answer is simple right! You get a new credit card! As long as you have plastic there’s not a care in the world you can’t “swipe” away! Really? How long do you think that will last? I can tell you, it lasted about 30 or 40 years and the jig is up, the party is over and the piper want’s his dough!
Now the Tax & Spend Liberal/Socialist/Progressive/Communist in Washington DC want you to believe this same lie they have been feeding the American public for generations! Let’s see if this really makes any sense!
They want you to believe that if you allow them to take a larger portion of YOUR pay check ( you know, the one you no longer have because there are no jobs! ) and allow them to “re-distribute” it as they see fit, then the economy will magically be revived! Does this make any sense at all? Do you think 100% of the money they take from YOUR income goes to help the needy and the poor? Please? It goes to pay for the people working in government jobs!
You have 10% of the US population, who want jobs, who can’t find them. What does this tell you about the other 90%? That’s right! They have jobs! 90% of the people in America, who want or need a job, have one. Granted, it may not be the best job ever but it’s and income and a source of self-worth, accomplishment and self-reliance that no form of hand out, government program or welfare state could ever hope to give its people!
Now, the Tax & Spenders claim the problem is no-one is buying anything, this is what is meant by “the economy is bad”. If you don’t buy another 57” TV for the bathroom, or that new video game console for the RV (I hate camping without my Xbox!) or the new washer and dryer for mom, “manufactures” have nothing to manufacture because no one is buying their wears! So what you need, are people who have an income; more importantly, disposable income. That’ right, you either need people who have a little extra each month ( and are willing to spend it ) or, you sell them on the idea that “it’s not how much it cost, it’s how much are the monthly payments!” But if they have a little left over each month to spend, why would you think that reducing that amount ( by taking it in the form of an income tax ) would help bolster the economy? That's ludicrous!
So the problem is reduced to this, 10% of the people have no income and can therefore not afford to be regular consumers of goods. 90% of the people have jobs, but most of them are in such deep debt that they’ve begun to cut back on their own personal “Deficit Spending”! At least this is what we are being told!
Now the fact of the matter is, if you go down to any mall in America, you’ll still get a decent workout on your walk from the far end of the parking lot! The restaurants still have 20 and 30 minute waits on a Tuesday night! Why? Because 90% of Americans have jobs and some small amount of disposable income!
So the Lib’s answer to the problem is this, let’s take more of the disposable income from the 90% of the Americans who have jobs and give it to the 10% who do not! So now, the 90% have less disposable income and the 10% have more disposable income but still no jobs! Why? Because you haven’t changed the overall supply of real money! It does not matter one bit WHO spends the money only that there is money to spend! Remember we said that not 100% of your tax dollars are going to make it to the 10% who could use it; they are going to go to pay for the bureaucracy that will distribute it! Let’s do some quick math as an example; we will use ridiculously small numbers to make the problem easier to understand.
Let’s reduce the American population to 100 people; 90 of whom have jobs and 10 that do not.
Further, let’s use $50,000 as the median income. Also, let’s use a small 4 level tax structure as the current tax rate ( God only knows the country could use a flat tax!) and say that there are those who pay 0%, 10%, 20% and 30% respectively based on their income. So we have something like this:
Income 0 – 24,999 Tax = 0%
Income 25,000 – 49,999 Tax = 10%
Income 50,000 – 99,999 Tax = 20%
Income 100,000 & Up Tax = 30%
Now the 10 people who are currently un-employed will obviously fall into the 0% tax rate.
Let’s say that 50% of the people are in the 25K – 50K 10% bracket and 35% are in the 50K – 99K 20% bracket leaving the top bracket to the remaining 5% of our 100 people. That breaks down like this:
10 people who pay Zero in Federal Income Tax. Let’s call this group “The Poor”
50 people who pay 10% Lets’ call this group “Low Income”
35 people who pay 20% Let’s call this group “Middle Class”
5 people who pay 30% Let’s call this group “The Rich”
Let’s use some “median” incomes to do some additional math and figure out how the Federal Government will make its income.
10 People pay $0.00 per year
50 People make on average $37,500 per year times 10% = $3,750 per person or $187,500
35 People make on average $75,000 per year times 20% = $15,000 per person or $525,000
5 People make on average $300,000 per year times 30% = $90,000 per person or $450,000
Now, what sorts of things do we notice from this example?
The first thing that jumps out at me is that the Federal Governments highest source of income is coming from the 35% of people in “The Middle Class”! Notice, too, that the Federal Government has an income of $1,162,500!!! WHAT THE $#&!? You are telling me that “The Rich” make $300,000 and the Federal Government makes $1,162,500! Who’s making the REAL MONEY? Come on people WAKE UP!
Further, we can see that 60% of the people fall into either “The Poor” or “Low Income” categories, thus 35% of the people are paying the most for the “social programs” that address the needs of “The Poor” and the “Low Income” groups.
Next, I notice that each person’s “total tax burden” exponentially increases with their increase in income! The Middle Class pay, nearly, five times as much, actual money per person, as the “Low Income” group. The top 5% of the people are paying nearly as much as the 35% of the people in the middle class combined and are paying six times as much, per person, as “The Middle Class”! So the entire, American, population of 100 people has exactly $303,750 in “spendable” income while The Federal Government has $1,162,500! Um, excuse me? Are you telling me that $1,162,500 is given to “The Poor” as spendable income? Of course NOT! Where does that money go? One of the dirty little secrets is, a growing number of Bureaucrats are in that “Middle Class” and an alarming number of them are in “The Rich” group! That’s where the VAST MAJORITY of your tax dollars go, to pay for Federal Jobs ( and the ridiculously lavish pension plans they come with).
But I digress! The point was to show that it does not matter “who” spends the disposable money but rather that the total amount of disposable money gets increased! So let’s have a look at that, shall we?
Our groups were:
The Poor: who have Zero disposable income
Low Income: who have $37,500 - $3,750 = $33,750 in “spendable” income
Middle Class: who have $75,000 - $15,000 = $60,000 in “spendable” income
The Rich: who have $300,000 - $90,000 = $210,000 in “spendable” income
So in our math example we have the Federal Government taking in a total of $1,162,500 per year in income taxes.
Now the Libs want to increase income taxes on “The Rich”, so let’s say they do just that! They increase the tax burden on the top 5% from 30% to 40%. It’s only 10% right? They can afford it! After all they are rich!
So now our numbers work out like this:
10 People pay $0.00 per year
50 People make on average $37,500 per year times 10% = $3,750 per person or $187,500
35 People make on average $75,000 per year times 20% = $15,000 per person or $525,000
5 People make on average $300,000 per year times 40% = $120,000 per person or $600,000
And our list of “spendable” money looks like this:
The Poor: now have divided among them the additional $30,000, taken from “The Rich”.
Low Income: who have $37,500 - $3,750 = $33,750 in “spendable” income
Middle Class: who have $75,000 - $15,000 = $60,000 in “spendable” income
The Rich: who have $300,000 - $120,000 = $180,000 in “spendable” income
So now we have a total “spendable” income of:
The Poor: $30,000
Low Income: $33,750
Middle Class: $60,000
The Rich: $180,000
Total = $303,750
HEY, WAIT ONE DOG GONE MINUTE! That is the EXACT same amount of money that was available to be spent BEFORE we stole from the rich to give to the poor!
What if, instead of increasing taxes, we focused on creating jobs! Even jobs in the Low Income bracket of $37,500. What would happen if we took just ½ of the unemployed and got them all jobs making $37,500 a year?
You do the math, but the short answer is this, 5 people would now have an additional $30,000 a year in spendable income; increasing the “economy” by $150,000 of “spendable” income! The Federal Government would gain and additional $18,750 in revenue ( in the form of income taxes on the newly created jobs) that could then be distributed to the few people who are left without a job, primarily because they are un-employable for one reason or another (mental or physical illness for example).
I hope this, rather long example has proven to you that the answer to our current financial woes is NOT to TAX and SPEND but rather to reduce taxes on those who create jobs, so they have more disposable income to hire new employees! This would have the additional benefit of creating greater demand for goods and services, further fueling the need for workers and so on and so on. If you have more people working, you have more people buying and if more people are buying, you need more people working to produce the stuff to buy! It’s all quite simple when you take a moment to think about it!
Thank you for taking a moment to think about it! Now, go out in November and vote for congressional candidates who understand these simple truths!
Now the Tax & Spend Liberal/Socialist/Progressive/Communist in Washington DC want you to believe this same lie they have been feeding the American public for generations! Let’s see if this really makes any sense!
They want you to believe that if you allow them to take a larger portion of YOUR pay check ( you know, the one you no longer have because there are no jobs! ) and allow them to “re-distribute” it as they see fit, then the economy will magically be revived! Does this make any sense at all? Do you think 100% of the money they take from YOUR income goes to help the needy and the poor? Please? It goes to pay for the people working in government jobs!
You have 10% of the US population, who want jobs, who can’t find them. What does this tell you about the other 90%? That’s right! They have jobs! 90% of the people in America, who want or need a job, have one. Granted, it may not be the best job ever but it’s and income and a source of self-worth, accomplishment and self-reliance that no form of hand out, government program or welfare state could ever hope to give its people!
Now, the Tax & Spenders claim the problem is no-one is buying anything, this is what is meant by “the economy is bad”. If you don’t buy another 57” TV for the bathroom, or that new video game console for the RV (I hate camping without my Xbox!) or the new washer and dryer for mom, “manufactures” have nothing to manufacture because no one is buying their wears! So what you need, are people who have an income; more importantly, disposable income. That’ right, you either need people who have a little extra each month ( and are willing to spend it ) or, you sell them on the idea that “it’s not how much it cost, it’s how much are the monthly payments!” But if they have a little left over each month to spend, why would you think that reducing that amount ( by taking it in the form of an income tax ) would help bolster the economy? That's ludicrous!
So the problem is reduced to this, 10% of the people have no income and can therefore not afford to be regular consumers of goods. 90% of the people have jobs, but most of them are in such deep debt that they’ve begun to cut back on their own personal “Deficit Spending”! At least this is what we are being told!
Now the fact of the matter is, if you go down to any mall in America, you’ll still get a decent workout on your walk from the far end of the parking lot! The restaurants still have 20 and 30 minute waits on a Tuesday night! Why? Because 90% of Americans have jobs and some small amount of disposable income!
So the Lib’s answer to the problem is this, let’s take more of the disposable income from the 90% of the Americans who have jobs and give it to the 10% who do not! So now, the 90% have less disposable income and the 10% have more disposable income but still no jobs! Why? Because you haven’t changed the overall supply of real money! It does not matter one bit WHO spends the money only that there is money to spend! Remember we said that not 100% of your tax dollars are going to make it to the 10% who could use it; they are going to go to pay for the bureaucracy that will distribute it! Let’s do some quick math as an example; we will use ridiculously small numbers to make the problem easier to understand.
Let’s reduce the American population to 100 people; 90 of whom have jobs and 10 that do not.
Further, let’s use $50,000 as the median income. Also, let’s use a small 4 level tax structure as the current tax rate ( God only knows the country could use a flat tax!) and say that there are those who pay 0%, 10%, 20% and 30% respectively based on their income. So we have something like this:
Income 0 – 24,999 Tax = 0%
Income 25,000 – 49,999 Tax = 10%
Income 50,000 – 99,999 Tax = 20%
Income 100,000 & Up Tax = 30%
Now the 10 people who are currently un-employed will obviously fall into the 0% tax rate.
Let’s say that 50% of the people are in the 25K – 50K 10% bracket and 35% are in the 50K – 99K 20% bracket leaving the top bracket to the remaining 5% of our 100 people. That breaks down like this:
10 people who pay Zero in Federal Income Tax. Let’s call this group “The Poor”
50 people who pay 10% Lets’ call this group “Low Income”
35 people who pay 20% Let’s call this group “Middle Class”
5 people who pay 30% Let’s call this group “The Rich”
Let’s use some “median” incomes to do some additional math and figure out how the Federal Government will make its income.
10 People pay $0.00 per year
50 People make on average $37,500 per year times 10% = $3,750 per person or $187,500
35 People make on average $75,000 per year times 20% = $15,000 per person or $525,000
5 People make on average $300,000 per year times 30% = $90,000 per person or $450,000
Now, what sorts of things do we notice from this example?
The first thing that jumps out at me is that the Federal Governments highest source of income is coming from the 35% of people in “The Middle Class”! Notice, too, that the Federal Government has an income of $1,162,500!!! WHAT THE $#&!? You are telling me that “The Rich” make $300,000 and the Federal Government makes $1,162,500! Who’s making the REAL MONEY? Come on people WAKE UP!
Further, we can see that 60% of the people fall into either “The Poor” or “Low Income” categories, thus 35% of the people are paying the most for the “social programs” that address the needs of “The Poor” and the “Low Income” groups.
Next, I notice that each person’s “total tax burden” exponentially increases with their increase in income! The Middle Class pay, nearly, five times as much, actual money per person, as the “Low Income” group. The top 5% of the people are paying nearly as much as the 35% of the people in the middle class combined and are paying six times as much, per person, as “The Middle Class”! So the entire, American, population of 100 people has exactly $303,750 in “spendable” income while The Federal Government has $1,162,500! Um, excuse me? Are you telling me that $1,162,500 is given to “The Poor” as spendable income? Of course NOT! Where does that money go? One of the dirty little secrets is, a growing number of Bureaucrats are in that “Middle Class” and an alarming number of them are in “The Rich” group! That’s where the VAST MAJORITY of your tax dollars go, to pay for Federal Jobs ( and the ridiculously lavish pension plans they come with).
But I digress! The point was to show that it does not matter “who” spends the disposable money but rather that the total amount of disposable money gets increased! So let’s have a look at that, shall we?
Our groups were:
The Poor: who have Zero disposable income
Low Income: who have $37,500 - $3,750 = $33,750 in “spendable” income
Middle Class: who have $75,000 - $15,000 = $60,000 in “spendable” income
The Rich: who have $300,000 - $90,000 = $210,000 in “spendable” income
So in our math example we have the Federal Government taking in a total of $1,162,500 per year in income taxes.
Now the Libs want to increase income taxes on “The Rich”, so let’s say they do just that! They increase the tax burden on the top 5% from 30% to 40%. It’s only 10% right? They can afford it! After all they are rich!
So now our numbers work out like this:
10 People pay $0.00 per year
50 People make on average $37,500 per year times 10% = $3,750 per person or $187,500
35 People make on average $75,000 per year times 20% = $15,000 per person or $525,000
5 People make on average $300,000 per year times 40% = $120,000 per person or $600,000
And our list of “spendable” money looks like this:
The Poor: now have divided among them the additional $30,000, taken from “The Rich”.
Low Income: who have $37,500 - $3,750 = $33,750 in “spendable” income
Middle Class: who have $75,000 - $15,000 = $60,000 in “spendable” income
The Rich: who have $300,000 - $120,000 = $180,000 in “spendable” income
So now we have a total “spendable” income of:
The Poor: $30,000
Low Income: $33,750
Middle Class: $60,000
The Rich: $180,000
Total = $303,750
HEY, WAIT ONE DOG GONE MINUTE! That is the EXACT same amount of money that was available to be spent BEFORE we stole from the rich to give to the poor!
What if, instead of increasing taxes, we focused on creating jobs! Even jobs in the Low Income bracket of $37,500. What would happen if we took just ½ of the unemployed and got them all jobs making $37,500 a year?
You do the math, but the short answer is this, 5 people would now have an additional $30,000 a year in spendable income; increasing the “economy” by $150,000 of “spendable” income! The Federal Government would gain and additional $18,750 in revenue ( in the form of income taxes on the newly created jobs) that could then be distributed to the few people who are left without a job, primarily because they are un-employable for one reason or another (mental or physical illness for example).
I hope this, rather long example has proven to you that the answer to our current financial woes is NOT to TAX and SPEND but rather to reduce taxes on those who create jobs, so they have more disposable income to hire new employees! This would have the additional benefit of creating greater demand for goods and services, further fueling the need for workers and so on and so on. If you have more people working, you have more people buying and if more people are buying, you need more people working to produce the stuff to buy! It’s all quite simple when you take a moment to think about it!
Thank you for taking a moment to think about it! Now, go out in November and vote for congressional candidates who understand these simple truths!
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