Posts tagged taxes

John Stossel – Stop Subsidizing The Rich (Video)

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Source: http://www.againstcronycapitalism.org

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John Stossel – Stop Subsidizing The Rich (Video)

 

Taxpayers will be the ones to rebuild this house. (Which should never have been built in the first place.)

Taxpayers will be the ones to rebuild this house. (Which should never have been built in the first place.)

 

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How does money move between the States and Feds?

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How does money move between the States and Feds?

 

1-11-2014 1-58-40 PM

 

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Published by NextNewsNetwork

Constitutional scholar Dr. Edwin Vieira sits down with Gary Franchi and answers the question… How does money move between the States and Feds?

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You want your tax break (or credit) extended? Better give to the right congresspeople

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Source: http://www.againstcronycapitalism.org

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You want your tax break (or credit) extended? Better give to the right congresspeople

 

US Capitol For Sale (Washington, DC)

 

This is a nice little game (and revenue stream) for Congress. Tax breaks and tax credits come up for renewal every year and the beneficiaries of these favors cue up to throw campaign dollars and other gifts at the feet of Washington politicians – every year.

It’s crony capitalist genius. Why write something permanently into the code and only get paid once when Congress can turn political favors into a subscription service?

Remember the old adage. Never kill a sheep. Shear it over and over.

(From The Washington Free Beacon)
 
“If the past is prologue, some—but not all—of these provisions will be extended, but we will not know until much later in 2014 which ones will be extended, whether they will be extended with modifications, how long they will be extended, whether the extension will be retroactive and who will be stuck “paying” for any such extension,” they wrote. “Still, despite the history of on-again, off-again extensions, it is risky to assume that any particular provision will be extended simply because it has been extended in the past.”

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.
 
 

How Will The Economy Improve In 2014 If Almost Everyone Has Less Money To Spend?

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Source: http://theeconomiccollapseblog.com

By Michael Snyder

How Will The Economy Improve In 2014 If Almost Everyone Has Less Money To Spend?

 

Piggybank-Photo-by-Damian-OSullivan-300x199Is the U.S. consumer tapped out?  If so, how in the world will the U.S. economy possibly improve in 2014?  Most Americans know that the U.S. economy is heavily dependent on consumer spending.  If average Americans are not out there spending money, the economy tends not to do very well.  Unfortunately, retail sales during the holiday season appear to be quite disappointing and the middle class continues to deeply struggle.  And for a whole bunch of reasons things are likely going to be even tougher in 2014.  Families are going to have less money in their pockets to spend thanks to much higher health insurance premiums under Obamacare, a wide variety of tax increases, higher interest rates on debt, and cuts in government welfare programs.  The short-lived bubble of false prosperity that we have been enjoying for the last couple of years is rapidly coming to an end, and 2014 certainly promises to be a very “interesting year”.

Obamacare Rate Shock

Most middle class families are just scraping by from month to month these days.

Unfortunately for them, millions of those families are now being hit with massive health insurance rate increases.

In a previous article, I discussed how one study found that health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.

Most middle class families simply cannot afford that.

Earlier today, I got an email from a reader that was paying $478 a month for health insurance for his family but has now received a letter informing him that his rate is going up to $1,150 a month.

Millions of families are receiving letters just like that.  And to say that these rate increases are a “surprise” to most people would be a massive understatement.  Even people that work in the financial industry are shocked at how high these premiums are turning out to be…

“The real big surprise was how much out-of-pocket would be required for our family,” said David Winebrenner, 46, a financial adviser in Lebanon, Ky., whose deductible topped $12,000 for a family of six for a silver plan he was considering. The monthly premium: $1,400.

Since Americans are going to have to pay much more for health insurance, that is going to remove a huge amount of discretionary spending from the economy, and that will not be good news for retailers.

Get Ready For Higher Taxes

When you raise taxes, you reduce the amount of money that people have in their pockets to spend.

Sadly, that is exactly what is happening.

Congress is allowing a whopping 55 tax breaks to expire at the end of this year, and when you add that to the 13 major tax increases that hit American families in 2013, it isn’t a pretty picture.

This tax season, millions of families are going to find out that they have much higher tax bills than they had anticipated.

And all of this comes at a time when incomes in America have been steadily declining.  In fact, real median household income has declined by a total of 8 percent since 2008.

If you are a worker, you might want to check out the chart that I have posted below to see where you stack up.  In America today, most workers are low income workers.  These numbers come from a recent Huffington Post article

-If you make more than $10,000, you earn more than 24.2% of Americans, or 37 million people.
 
-If you make more than $15,000 (roughly the annual salary of a minimum-wage employee working 40 hours per week), you earn more than 32.2% of Americans.
 
-If you make more than $30,000, you earn more than 53.2% of Americans.
 
-If you make more than $50,000, you earn more than 73.4% of Americans.
 
-If you make more than $100,000, you earn more than 92.6% of Americans.
 
-You are officially in the top 1% of American wage earners if you earn more than $250,000.
 
-The 894 people that earn more than $20 million make more than 99.99989% of Americans, and are compensated a cumulative $37,009,979,568 per year.

It is important to keep in mind that those numbers are for the employment income of individuals not households.  Most households have more than one member working, so overall household incomes are significantly higher than these numbers.

Higher Interest Rates Mean Larger Debt Payments

On Tuesday, the yield on 10 year U.S. Treasuries rose to 3.03 percent.  I warned that this would happen once the taper started, and this is just the beginning.  Interest rates are likely to steadily rise throughout 2014.

The reason why the yield on 10 year U.S. Treasuries is such a critical number is because mortgage rates and thousands of other interest rates throughout our economy are heavily influenced by that number.

So big changes are on the way.  As a recent CNBC article declared, the era of low mortgage rates is officially over…

The days of the 3.5% 30-year fixed are over. Rates are already up well over a full percentage point from a year ago, and as the Federal Reserve begins its much anticipated exit from the bond-buying business, I believe rates will inevitably go higher.

Needless to say, this is going to deeply affect the real estate market.  As Mac Slavo recently noted, numbers are already starting to drop precipitously…

The National Association of Realtors reported that the month of September saw its single largest drop in signed home sales in 40 months. And that wasn’t just a one-off event. This month mortgage applications collapsed a shocking 66%, hitting a 13-year low.

And U.S. consumers can expect interest rates on all kinds of loans to start rising.  That is going to mean higher debt payments, and therefore less money for consumers to spend into the economy.

Government Benefit Cuts

Well, if the middle class is going to have less money to spend, perhaps other Americans can pick up the slack.

Or maybe not.

You certainly can’t expect the poor to stimulate the economy.  As I mentioned yesterday, it is being projected that up to 5 million unemployed Americans could lose their unemployment benefits by the end of 2014, and 47 million Americans recently had their food stamp benefits reduced.

So the poor will also have less money to spend in 2014.

The Wealthy Save The Day?

Perhaps the stock market will continue to soar in 2014 and the wealthy will spend so much that it will make up for all the rest of us.

You can believe that if you want, but the truth is that there are a whole host of signs that the days of this irrational stock market bubble are numbered.  The following is an excerpt from one of my recent articles entitled “The Stock Market Has Officially Entered Crazytown Territory“…

The median price-to-earnings ratio on the S&P 500 has reached an all-time record high, and margin debt at the New York Stock Exchange has reached a level that we have never seen before.  In other words, stocks are massively overpriced and people have been borrowing huge amounts of money to buy stocks.  These are behaviors that we also saw just before the last two stock market bubbles burst.

If the stock market bubble does burst, the wealthy will also have less money to spend into the economy in 2014.

For the moment, the stock market has been rallying.  This is typical for the month of December.  You see, the truth is that investors generally don’t want to sell stocks in December because they want to put off paying taxes on the profits.

If stocks are sold before the end of the year, the profits go on the 2013 tax return.

If stocks are sold a few days from now, the profits go on the 2014 tax return.

It is only human nature to want to delay pain for as long as possible.

Expect to see some selling in January.  Many investors are very eager to start taking profits, but they wanted to wait until the holidays were over to do so.

So what do you think is coming up in 2014?

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This article first appeared here at the Economic Collapse Blog.  Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here


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Lobbyists Cheer Boehner and Ryan for Expanding Government in Deal

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Source: http://www.againstcronycapitalism.org

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Lobbyists Cheer Boehner and Ryan for Expanding Government in Deal

 

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There is a clear line which has been drawn in the dirt of Washington DC. On one side there are the lobbyists, the #oldmedia, and the establishment political machines. On the other side are the people calling for a truly smaller government.

The thought that government would shrink, even a government which is as bloated and debt ridden as our own, is beyond the pale for those whose business it is to extract wealth from taxpayers. That’s why the lobbyists in Downtown DC have cheered the budget deal.

Think about it. A large part of K Street has built a career on buying the GOP, and now the Tea Party is just going to take over the place? Who do these small government people think they are anyway? This is “our town.” This is our party, and frankly the party has been rocking for decades. So long as government grows everyone can get a piece for themselves–everyone in Washington DC anyway. Why would anyone want to stop this? Principals are great and all, but we are here to get paid! Principals are for poor people.

And that is what they think.

(From Breitbart.com)
 
Grassroots conservative groups have fired back. Club for Growth has responded by pointing out, “Corporations are some of the biggest seekers of welfare in this country.” Heritage Action for America, meanwhile, has commented, “The fact that K Street is applauding confirms that the deal was bad, and Speaker Boehner’s comments confirm conservatives’ worst suspicions about Washington — that the game is rigged.”

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

Peter Schiff ~ They Bravely Chickened Out

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Source: http://www.europac.net

By Peter Schiff

Friday, December 13, 2013

Peter Schiff ~ They Bravely Chickened Out

 

Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital

Earlier this week Congress tried to show that it is capable of tackling our chronic and dangerous debt problems. Despite the great fanfare I believe they have accomplished almost nothing. Supporters say that the budget truce created by Republican Representative Paul Ryan and Democratic Senator Patty Murray will provide the economy with badly needed certainty. But I think the only surety this feeble and fictitious deal offers is that Washington will never make any real moves to change the trajectory of our finances, and that future solutions will be forced on us by calamity rather than agreement.

There can be little doubt that the deal resulted from a decision by Republicans, who may be still traumatized by the public relations drubbing they took with the government shutdown, to make the 2014 and 2016 elections a simple referendum on Obamacare. Given the ongoing failures of the President’s signature health care plan, and the likelihood that new problems and outrages will come to light in the near future, the Republicans have decided to clear the field of any obstacles that could distract voters from their anger with Obama and his defenders in Congress. The GOP smells a political winner and all other issues can wait. It is no accident the Republican press conference on the budget deal was dominated by prepared remarks focusing on the ills of Obamacare.

Although he had crafted his reputation as a hard nosed deficit hawk, Paul Ryan claimed that the agreement advances core Republican principles of deficit reduction and tax containment. While technically true, the claim is substantively hollow. In my opinion the more honest Republicans are arguing that the Party is simply making a tactical retreat in order to make a major charge in the years ahead. They argue that Republicans will need majorities in both houses in 2014, and the White House in 2016, in order to pass meaningful reforms in taxing and spending. This has convinced them to prioritize short term politics over long term goals. I believe that this strategy is wishful thinking at best. It magnifies both the GOP’s electoral prospects (especially after alienating the energetic wing of their party) and their willingness to make politically difficult decisions if they were to gain majority power (recent Bush Administration history should provide ample evidence of the party’s true colors). Their strategy suggests that Republicans (just like the Democrats) have just two priorities: hold onto their own jobs, and to make their own party a majority so as to increase their currency among lobbyists and donors. This is politics at its most meaningless.  I believe public approval ratings for Congress have fallen to single digit levels not because of the heightened partisanship, but because of blatant cowardice and dishonesty. Their dereliction of responsibility will not translate to respect or popularity. Real fiscal conservatives should continue to focus on the dangers that we continue to face and look to constructive solutions. Honesty, consistency and courage are the only real options.

In the meantime we are given yet another opportunity to bask in Washington’s naked cynicism. Congress proposes cuts in the future while eliminating cuts in the present that it promised to make in the past! The Congressional Budget Office (which many believe is too optimistic) projects that over the next 10 years the Federal government will create $6.38 trillion in new publicly held debt (intra-governmental debt is excluded from the projections). This week’s deal is projected to trim just $22 billion over that time frame, or just 3 tenths of 1 percent of this growth. This rounding error is not even as good as that. The $22 billion in savings comes from replacing $63 billion in automatic “sequestration” cuts that were slated to occur over the next two years, with $85 billion in cuts spread over 10 years. As we have seen on countless occasions, long term policies rarely occur as planned, since future legislators consistently prioritize their own political needs over the promises made by predecessors.

The lack of new taxes, which is the deal’s other apparent virtue, is merely a semantic achievement. The bill includes billions of dollars in new Federal airline passenger “user fees” (the exact difference between a “fee” and a “tax” may be just as hard to define as the difference between Obamacare “taxes” and a “penalties” that required a Supreme Court case to decide). But just like a tax, these fees will take more money directly from consumer’s wallets. The bigger issue is the trillions that the government will likely take indirectly through debt and inflation.

The good news for Washington watchers is that this deal could finally bring to an end the redundant “can-kicking” exercises that have frustrated the Beltway over the last few years. Going forward all the major players have agreed to pretend that the can just doesn’t exist. In making this leap they are similar to Wall Street investors who ignore the economy’s obvious dependence on the Federal Reserve’s Quantitative Easing program as well as the dangers that will result from any draw down of the Fed’s $4 trillion balance sheet.

The recent slew of employment and GDP reports have convinced the vast majority of market watchers that the Fed will begin tapering its $85 billion per month bond purchases either later this month or possibly by March of 2014. Many also expect that the program will be fully wound down by the end of next year. However, that has not caused any widespread concerns that the current record prices of U.S. markets are in danger. Additionally, given the Fed’s current centrality in the market for both Treasury and Mortgage bonds, I believe the market has failed to adequately allow for severe spikes in interest rates if the Fed were to reduce its purchasing activities. With little fanfare yields on the 10 year and 30 year Treasury bonds are already approaching multi-year highs. Few are sparing thoughts for yield spikes that could result if the Fed were to slow, or stop, its buying binge.

So America blissfully sails on, ignoring the obvious fiscal, monetary, and financial shoals that lay ahead in plain sight. I believe that will continue this dangerous course until powers outside the United States finally force the issue by refusing to expand their holding of U.S. debt. That will finally bring on the debt and currency crisis that we have created by our current cowardice.

Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, best-selling author and host of syndicated Peter Schiff Show.


 

Boeing’s crony capitalism in America’s heartland

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Boeing’s crony capitalism in America’s heartland

 

Boeing Business Jet Family K63803

 

Everywhere Boeing goes subsidies follow. Without fail. In defense, in commercial aircraft, it doesn’t matter. It almost appears that subsidies are built fundamentally into Boeing’s business plan.

 

Actually, subsidies are built fundamentally into Boeing’s business plan.

The airline manufacturer even has its own taxpayer subsidized bank in the Export Import Bank of the United States. Sweet!

Not sweet for the taxpayers, but hey who cares about them?

(From The American Spectator)
 
Nixon is urging Missouri lawmakers to adopt a special tax package that would pay Boeing up to $75,000 per job per year — based on annual subsidies of $150 million spread over a minimum requirement of 2,000 jobs. No doubt that will strike some observers as money well spent — given much higher subsidy costs in other areas, such as solar energy, where federal subsidies have exceeded $350,000 per job.
 
Nevertheless, there are good reasons for being strongly opposed to the Boeing package.

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

Abolish The IRS and End Income Tax Legislation Introduced in Congress

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Source: http://freepatriot.org

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Abolish The IRS and End Income Tax Legislation Introduced in Congress

 

Three American Congressman are taking a stand for the citizens of this nation and leading an effort to steer us back in line with the Constitutional government as it was given to us by our founders. It is a large step but one that is sorely needed if we are to ever free ourselves from the shackles of our global government protagonists.

Congressman Jim Bridenstine, R-OK, along with Reps. Ron DeSantis, R-FL., and Thomas Massie, R-KY., has introduced House Joint Resolution 104, “an amendment to the Constitution of the United States to repeal the 16th article of Amendment.”

Among the arguments made in favor of this legislation is a resolution to the conflict which exists between the 16th amendment and the 4th Amendment protections to be secure in our persons, houses, papers and effects from unreasonable searches and seizures. Bridenstine’s contention is that the methodology of IRS seizures and IRS data-mining in the form of intrusive mandatory tax form submissions violate the fourth amendment protections.

Repealing the 16th Amendment would eliminate the personal and corporate income taxes, the estate and gift taxes and the taxes on investment earnings at the federal level.

The process is not difficult but does require some time and the involvement of the states and citizens. There is a simple three-fourths of the states approval threshold which must be met in order to repeal an amendment.

After ratification, there would be a two-year period which is more than enough time in which to determine a replacement revenue system.

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A List Of 23 Famous Obama Quotes That Turned Out To Be Broken Promises Or Cold-Hearted Lies

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Source: http://thetruthwins.com

By Michael Snyder

A List Of 23 Famous Obama Quotes That Turned Out To Be Broken Promises Or Cold-Hearted Lies

 

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How many lies can one president tell and still retain any credibility?  What you are about to see is absolutely astounding.  It is a long list of important promises that Barack Obama has broken since he has been president.  If he had only told a few lies, perhaps the American people would be willing to overlook that.  After all, pretty much all of our politicians our liars.  Unfortunately, many of the lies that Obama has told appear to have been quite cold-hearted in nature.  For example, Barack Obama repeatedly made the promise that “you will be able to keep your health care plan” under Obamacare.  But now we are learning that he knew that this was a lie all along.  Not only that, the Democrats in Congress knew that this was a lie all along too.  In fact, U.S. Senator Kirsten Gillibrand, a Democrat, said the following when she was asked about Obama’s promise to the American people recently: “He should’ve just been specific. No, we all knew.”  You can see video of her making this statement right here.  The truth is that they all knew that millions upon millions of Americans would lose their current health care policies under Obamacare.  They deliberately lied just so that they could get the law passed.

And of course this is far from the only major lie that Obama has told in recent years.  The following is a list of 23 famous Obama quotes that turned out to be broken promises or cold-hearted lies…

#1 “If you like your doctor, you will be able to keep your doctor. Period. If you like your health care plan, you will be able to keep your health care plan. Period. No one will take it away. No matter what.”

#2 “My administration is committed to creating an unprecedented level of openness in government.”

#3 “We agree on reforms that will finally reduce the costs of health care. Families will save on their premiums…”

#4 “I don’t want to pit Red America against Blue America. I want to be the president
 of the United States of America.”

#5 “We’ve got shovel-ready projects all across the country that governors and mayors are pleading to fund. And the minute we can get those investments to the state level, jobs are going to be created.”

#6 “And we will pursue the housing plan I’m outlining today. And through this plan, we will help between 7 and 9 million families restructure or refinance their mortgages so they can afford—avoid foreclosure.”

#7 “I will sign a universal health-care bill into law by the end of my first term as president that will cover every American and cut the cost of a typical family’s premium by up to $2,500 a year.”

#8 “We reject the use of national security letters to spy on citizens who are not suspected of a crime.”

#9 “For people with insurance, the only impact of the health-care law is that their insurance is stronger, better, and more secure than it was before. Full stop. That’s it. They don’t have to worry about anything else.”

#10 “We will close the detention camp in Guantanamo Bay, the location of so many of the worst constitutional abuses in recent years.”

#11 “Allow Americans to buy their medicines from other developed countries if the drugs are safe and prices are lower outside the U.S.”

#12 “We will revisit the Patriot Act and overturn unconstitutional executive decisions issued during the past eight years.”

#13 “Will ensure that federal contracts over $25,000 are competitively bid.”

#14 “We reject sweeping claims of ‘inherent’ presidential power.”

#15 “Will eliminate all income taxation of seniors making less than $50,000 per year. This will eliminate taxes for 7 million seniors — saving them an average of $1,400 a year– and will also mean that 27 million seniors will not need to file an income tax return at all.”

#16 “We support constitutional protections and judicial oversight on any surveillance program involving Americans.”

#17 “If we have not gotten our troops out by the time I am president, it is the first thing I will do.  I will get our troops home, we will end this war.  You can take that to the bank.”

#18 “Will not sign any non-emergency bill without giving the American public an opportunity to review and comment on the White House website for five days.”

#19 “The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation.”

#20 “We have a choice in this country. We can accept a politics that breeds division and conflict and cynicism…. That is one option. Or, at this moment, in this election, we can come together and say, ‘Not this time….’”

#21 “We’ve got to spend some money now to pull us out of this recession. But as soon as we’re out of this recession, we’ve got to get serious about starting to live within our means, instead of leaving debt for our children and our grandchildren and our great-grandchildren.”

#22 “[T]oday I’m pledging to cut the deficit we inherited in half by the end of my first term in office. This will not be easy. It will require us to make difficult decisions and face challenges we’ve long neglected. But I refuse to leave our children with a debt that they cannot repay – and that means taking responsibility right now, in this administration, for getting our spending under control.”

#23 “I, Barack Hussein Obama, do solemnly swear that I will execute the office of president of the United States faithfully, and will to the best of my ability, preserve, protect, and defend the constitution of the United States.”

About the author: Michael T. Snyder is a former Washington D.C. attorney who now publishes The Truth. His new thriller entitled “The Beginning Of The End” is now available on Amazon.com

Image credit: http://thetruthwins.com

 

Central Bank Monetary Cures Cannot Work

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Central Bank Monetary Cures Cannot Work

 

11-9-2013 7-20-19 PM

 

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Published by Peter Schiff

Peter Schiff on CNBC Europe (11/7/2013)
Listen to The Peter Schiff Show
Live Weekdays 10am to noon ET on http://www.SchiffRadio.com

 

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