taxation

Hair of the dog that bit you: Alan Greenspan wants to solve the debt problem by raising taxes

by Lee on June 9, 2011 2:00 am · Comments/Link

Look who’s got religion. Former Federal Reserve Chairman Alan “Easy Money” Greenspan, supposedly an economist of Randian persuasion, thinks the debt and deficit are out of control and the only way to solve the problem is with higher taxes.

“The fact that I am in favor of going back to the Clinton tax structure is merely an indicator of how scared I am of this debt problem that has emerged and its order of magnitude,” he said.

The marginal tax rates fell in the early 2000s under former President George W. Bush, who instituted sweeping cuts that last year were renewed in a deal between President Barack Obama and congressional Republicans.

But the rates, particularly those on Americans earning more than $200,000 a year, have been the focus of intense debate and are considered in peril depending on how next year’s elections go. Congressional Democrats see higher taxes as a key to raising revenue to close the budget gap.

That sound you hear is Ayn Rand turning over – nay, spinning – in her grave.


Source: CNBC

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Taxing your way to recovery AKA digging your way out of the hole you’re standing in

by Lee on June 1, 2011 13:35 pm · Comments/Link

We’re not taking sides in this fight. Really we’re not. Fact is, we don’t think it matters much if the geniuses in Washington, DC raise taxes or lower taxes or cut spending or increase spending. The structural imbalances already built into the system are about to overwhelm any insignificant actions that may be taken by the midgets and their minions.

That being said, what makes anyone think that increasing an already staggering level of taxes will make a whit of difference? You can stand in the doorway if it makes you feel safer, but when the Richter Scale hits 9.9 the house is going to fall down and take you with it.

Nevertheless, the Wall Street Journal reports that some folks in Congress think a 62% tax bracket is the solution to a problem they won’t even acknowledge:

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Government Handouts Now Top Tax Revenues, First Time Since the Great Depression

by Mark on April 21, 2011 10:07 am · 4 comments

It hasn’t happened since the Great Depression, but we now find ourselves in a situation where the U.S. government is handing out more benefits to households than they are taking from them in taxes. If your first thought is that, of course, that’s because we aren’t taxing those damn rich people enough, please leave now, you’re causing a foul smell on my blog.

Elizabeth MacDonald of Fox News has penned a clear piece of work today that presents the big picture problem of just how far off-track our once proud capitalist America has gone.

In 2010, households were taxed $2.2 trillion, but raked in $2.3 trillion of goodies, from the usual big ticket programs like Social Security, Medicare and Medicaid, to one-time programs like stimulus spending, to supporting illegal aliens, to thousands of absurd giveaways you probably don’t even know about like millions of cell phones free from the government for the poor and illegal. An estimated 59% of the 308.7 million Americans get at least one federal benefit, according to the Census Bureau, based on 2009 data.

What’s really disturbing is that the handouts have been growing, and people are becoming more and more addicted to their programs. Get a load of this statistic: since 2007, 79% of household growth is attributed to government cash handouts. Just to be clear, yes, I am talking about the United States of America, not Europe who is now going in the other direction.

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Obama’s Deficit Speech a Disgrace, Shallow, Hyper-Partisan, Demagogic and Deeply Dishonest

by Mark on April 14, 2011 7:59 am · 1 comment

I’ve been absent from posting the last few days because, among other things, I’ve been busy putting together my taxes, a completely unproductive task that takes many days to a week or two to complete each year. Imagine my joy yesterday as I was going through my records, cursing the government, when our Campaigner-in-Chief came on TV to tell us how we can Win the Future by raising taxes on “the rich.”

As usual, President Obama’s speech had little of substance, was full of contempt and surprise, surprise, class warfare. Obama, who’s always in campaign mode, was probably at his best in a long time because he’s found a fight he truly can sink his teeth into — taxation versus spending cuts — with the issue so clear, at the fortuitous time of the kickoff of his reelection drive.

I tried to post something after watching it, but I filled with so much hate (yes, that is the proper word) for this man that could not get the right words out. Later on, I tuned into watched my favorite segment of the day on cable news, Bret Baier’s Special Report’ All Star Panel. In particular, I tune in for Charles Krauthammer. Once again, he didn’t disappoint. In describing Obama’s deficit speech, Krauthammer took the words out of my mouth, but so much more eloquently:

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Singapore Gets It: Lowers its Already Low Taxes

by Mark on March 31, 2011 6:48 am · Comments/Link

While the U.S. managed to not raise its federal income tax rates this time around, taxes and fees are rising across the country in states and cities. And you know more is on the way. Meanwhile, the already low-tax country of Singapore is lowering taxes again. It didn’t take protests in the streets to get it done either, the government thought it was the smart thing to do. Sovereignman.com has the details:

Individual income tax rates, which are already among the lowest in the developed world, are being cut. For example, income in the range of S$80,000 to S$120,000 (S$ is the Singapore dollar… this is roughly $65,000 to $95,000 USD) will now be taxed at a marginal rate of just 11.5%, down from 14% before.

For companies, corporate profits below S$100,000 (roughly $80,000 USD) under the old rate schedule were not taxed. This is still the case… and one of the reasons why Singapore is such an attractive draw to entrepreneurs– because, for a startup, those initial profits are incredibly important.

The next S$200,000 in profits (roughly $160,000 USD) used to be taxed at 8.5%. This has been cut to 6.8% under the new scheme, so the effective tax rate on roughly the first $240,000 USD is only 4.5%. Pretty reasonable.

The next S$194,118 in profits (roughly $154,000 USD) used to be taxed at 17%; this has now dropped to 13.6%… and finally, all profits above S$494,118 (about $392,000 USD) are taxed at 17%.

As corporate profit tax schemes go, this is incredibly low. A company with roughly $400,000 (USD) in profits would have an effective tax rate of just 8%, and a company with $1 million (USD) in profits would pay an effective tax rate of just 13.5%.

Singapore has also made new allowances in how businesses can deduct expenses through the “Product and Innovation Credit (PIC) Scheme.” The PIC Scheme allows businesses to deduct up to 400% of the actual expense for things like research and development, design, acquisition of intellectual property rights, etc.

Does any reader live in Singapore, or visited? We like to hear more.

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Catepillar Looks to Leave High-Tax State of Illinois

by Mark on March 29, 2011 8:30 am · 1 comment

Actions have consequences. Raising taxes is an action. Raising taxes have consequences.

People and companies are fleeing high tax states like California and New York. The latest high profile company considering making a move is Illinois-based Caterpillar. CEO Doug Oberhelman is looking at the recently enacted tax increases, and offers from other low-tax states wooing them, and thinking, WTF, why should we stay here and lose billions of dollars for our shareholders.

Note how clueless Governor Pat Quinn is: he says Caterpillar and others should stay in the state “for the children.” It’s their responsibility to overpay the union teachers.

Here’s a discussion on it at Fox Business Network:

Caterpillar is not alone.

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Is Nothing Sacred? Now They Want to Tax Toilet Paper

by Mark on March 24, 2011 7:01 am · 1 comment

Lawmakers keep trying to make it hard and harder to go number two. First we get 2-flushes-required low-flow toilets shoved down our throats, and now a toilet paper tax is on the table.

[Omaha] Mayor Jim Suttle went to Washington Tuesday flush with ideas for how federal officials could help cities like Omaha pay for multibillion-dollar sewer projects.

Among the items on his brainstorming list: a proposal for a 10-cent federal tax on every roll of toilet paper you buy.

Based on the four-pack price for Charmin double rolls Tuesday at a midtown Hy-Vee, such a tax would add more than 10 percent to the per-roll price, pushing it over a buck.

Where do ideas like this come from? In this case, the state of whacky ideas, Oregon.

The idea came from a failed 2009 House measure by an Oregon congressman to help cities and the environment.

“I heard about it and said, ‘Well, this is simple. Let’s put it on the table,’” said Suttle. “It doesn’t mean I endorse it.”

He doesn’t endorse it, but he’ll take the money from it if passes.

Source: Omaha.com

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Obama Loves Him Some Taxes: budget resurrects rejected tax increases

by Mark on February 14, 2011 16:46 pm · Comments/Link

Hold on just a gash darn minute. President Obama has been taking credit for extending the tax cuts. AP Reports It’s all lip service, as usual. In his new budget, released today, he resurrects them for “the wealthy” (those who create jobs).

The plan unveiled Monday includes tax increases for oil, gas and coal producers, investment managers and U.S.-based multinational corporations. The plan would allow Bush-era tax cuts to expire at the end of 2012 for individuals making more than $200,000 and married couples making more than $250,000. Wealthy taxpayers would have their itemized deductions limited starting in 2012, including deductions for mortgage interest, charitable contributions and state and local taxes.

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Peter Schiff: Funding Tax Cuts Through Debt Make Problems Worse

by Mark on December 8, 2010 12:35 pm · Comments/Link

According to Peter Schiff, the extension of the current federal income tax structure is a good thing, but without government spending cuts, we’re funding it through more debt. We’re going to face the same old problems, and share the same future as Ireland, but in a bigger way. The sovereign debt crisis is coming, whether it’s in six months of two years, it’s coming to the U.S.

http://www.youtube.com/watch?v=cKi6uoDZpYU

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