Tax Hikes Are Coming, If Obama Gets His Way

Tax Hikes Are Coming, If Obama Gets His Way

May
17th, 2011

Dr. John A. Sparks

President Obama is now openly proposing tax increases on at least two
important fronts as part of his “solution” to the growing debt crisis.

The president’s favorite approach is to talk about the “wealthiest
Americans.” In his speech on April 13, he proclaimed that he will do away with
the “Bush tax cuts” for the rich as soon as he has the opportunity. Just a week
later, April 21, he said that wealthier taxpayers like him should be willing to
pay “a little bit more” to prevent various social programs for the elderly and
the young from being cut. Of course, this is his way of preparing high-earning
Americans for a jump in their federal income tax rates. Apparently, he believes
that they are not currently doing their part or paying their fair share.

Listening to President Obama talk, one would think that the present federal
income tax system is a flat-rate system where everyone, no matter what their
income, pays at the same rate. Of course, the current system is, and has been
for a long time, a steeply graduated tax system where the highest earners pay at
the rate of 35 percent on the topmost portion of their earnings while low
earners pay at the rate of 10 percent. Now, Mr. Obama wants to push the highest
rates even higher, to near 40 percent. President Obama believes, perhaps
rightly, that soaking the rich will not hurt him politically.

But the president is targeting more than the wealthiest. In fact, in his
desperation, he is apparently now prepared to impose heavier tax burdens on
middle-income Americans as well. How? In a recent speech he stated that he wants
to raise the “cap” on Social Security. The cap on Social Security taxes works
this way: If an employee earns more than the cap (currently, $106,800) in a
given tax year, Social Security taxes are not deducted from the amount
of earnings over the cap. So, for example, if an employee earned $126,800 in
2010, he would pay 6.2 percent in Social Security taxes on the first $106,800,
or $6,621.60. The employer would also pay 6.2 percent. On the overage—the
$20,000 of income beyond the cap—neither the employee nor the employer would pay
any Social Security tax.

However, if President Obama has his way and the cap is raised by….

Read
more
.

Save America; Get Outraged

Save America; Get Outraged

April 8th, 2011

Don Feder, GrassTopsUSA.com

Where’s the outrage?
Given what Barack Obama is doing to the Constitution, the economy and our
future, the American people should be up in arms (metaphorically speaking, civility-hysterics
take note). Citizens should be marching on Washington with pitchforks and
flaming brands in hand (also a metaphor).
Every city should see demonstrations to make the most raucous Tea Party rally
look like Sunday night in Pierre, South Dakota.
Instead, it’s a mental fog as usual. Hey, the unemployment rate is now
(barely) below 9 percent! Wasn’t that a cold winter? Gee, I wonder what zany,
drug-induced thing Charlie
Sheen
will do next?
So, while America burns, we fiddle with our iPhones and talk about the
upcoming HBO series about vampire bootleggers and Borgias duking it out in
Camelot.
Other than Tea Party activists, the public seems supremely unperturbed by
Obama’s relentless assault on America. The president’s March 21-27 approval
rating was 45 percent. At the same point in their first terms, Clinton’s
approval rating was only three points higher – Reagan’s three points lower. Both
were re-elected, you may recall.
It’s true that since Obama occupied the White House, his
party’s stock
has taken
a nose-dive
– a net
loss
of 9 governorships, 7 Senate seats, and 60 House seats. But there’s no
guarantee that trend will continue.
The leader of the party that whines incessantly about the influence of money
in politics has announced he’ll spend $1 billion to win re-election….
Read more.

Thanksgiving: An Economics Lesson

Thanksgiving: An Economics Lesson

November 24th, 2010

Dr. Mark W. Hendrickson, FloydReports.com

Every   fall in my Econ 101 course, during the last class period  before we  part  for Thanksgiving, I share a lesson from early American  history.  It is  particularly timely, because it deals with those we  credit with  the  first American Thanksgiving, the Pilgrims of Plymouth  Colony.

Upon   arriving in New England, the Pilgrims shared “their meat,  drink,   apparel and all provisions” in common. As inevitably happens  under   collective ownership, the incentive to work disappeared. The grim   result  was food shortages, hunger, starvation; indeed, half of those   who  sailed on the Mayflower perished.

With  the colony’s  survival in question, the survivors reintroduced  the  principle of  private property. Each family was assigned a plot of  land.  They  adopted the apostle Paul’s dictum, “if any would not work,  neither   should he eat” (II Thessalonians 3:10). Thereafter, food  production   soared and the Pilgrims prospered.

The  political-economic lesson  here is obvious, and I won’t belabor  it.  Instead, let’s consider  another important lesson imparted by this   historical episode: We  humans need to be challenged.

Read more.

Cartoon of the Day: Obama’s Plan to Drown the Rich

1,300 Prison Inmates Get $9 Mil In Homebuyer Tax Credits

1,300 Prison Inmates Get $9 Mil In Homebuyer Tax Credits

Do the crime, get below prime. What’s good enough for Chris Countrywide Dodd is good enough for America’s convicts. One home was used by 67 different people to claim a tax credit. Someone call Stimulus cop, Sheriff Joe Biden, $26.7 miliion is a big effin’ deal!

Nearly 1,300 prison inmates wrongly received more than $9 million in tax credits for homebuyers despite being locked up when they claimed they bought a home, a government investigator reported Wednesday. 

The investigator said 241 of the inmates were serving life sentences.

In all, more than 14,100 taxpayers wrongly received at least $26.7 million in tax credits that were meant to boost the nation’s slumping housing markets, said the report by J. Russell George, the Treasury Department’s inspector general for tax administration.