Wednesday, July 07, 2010

Bush Tax Cuts Were Not Just for the Wealthy

I was reminded earlier today of what the tax implications maybe for the implementation of the Health Care Bill from earlier this year. By this excerpt of the bill


(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee's gross income (excluding the value of contributions to flexible spending arrangements).

In Lakewood's Division of Tax, I would bet they will be looking at that grossed up number to squeeze extra money out of every tax payer and every business entity in the City. When you look at it on an individual basis it may not be a lot of money, then add 10 - 20,000 tax payers it all of the sudden becomes something of boon to the budget bottom line.

Then along with that bit of information comes an article from SmartMoney.com regarding how the cost of the expiration of the Bush Tax will not only affect the wealthy, but it will affect every level of the tax paying public.


"You may have been led to believe that only individuals in the top two brackets will face higher federal income taxes when the Bush cuts go bye-bye. Not true! Unless Congress takes action and President Obama goes along, rates will go up for everyone -- not just a sliver of the wealthiest Americans. The current six rate brackets of 10%, 15%, 25%, 28%, 33% and 35% will be replaced by five new brackets with the higher rates of 15%, 28%, 31%, 36% and 39.6%. Just a few months ago, it seemed like a safe bet that Congress would make a fix to keep the existing 10%, 15%, 25% and 28% rate brackets to help out lower and middle-income folks..."

As you can see, those in the 10% tax bracket will move up to 15% and the rest will move up 3-4%. The question is, will those currently in the 15% tax bracket remain there or will they be hammered moving up to the 28% bracket.

Correct me if I am wrong didn't Obama campaign on the theory of no new income tax increases in the lower income brackets. Seems to me that is not going to be a promise he can hold if he and the Democrats allow the Tax cuts to expire.

Here is the money quote from the article:


"The Bush tax cuts don't just offer tax relief to the wealthiest Americans. They offer it to just about anyone who pays federal income taxes. Their scheduled demise next year will raise the tax bill of nearly every taxpayer, unless Congress makes changes and the president jumps on board."

Sunday, July 04, 2010

"When in the Course of human events..."

                                           IN CONGRESS, JULY 4, 1776

The unanimous Declaration of the thirteen united States of America


When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.


We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. — Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.


He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.

He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.

He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their Public Records, for the sole purpose of fatiguing them into compliance with his measures.


He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.


He has refused for a long time, after such dissolutions, to cause others to be elected, whereby the Legislative Powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.

He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.

He has obstructed the Administration of Justice by refusing his Assent to Laws for establishing Judiciary Powers.

He has made Judges dependent on his Will alone for the tenure of their offices, and the amount and payment of their salaries.

He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.

He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.

He has affected to render the Military independent of and superior to the Civil Power.

He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:


For quartering large bodies of armed troops among us:


For protecting them, by a mock Trial from punishment for any Murders which they should commit on the Inhabitants of these States:


For cutting off our Trade with all parts of the world:


For imposing Taxes on us without our Consent:


For depriving us in many cases, of the benefit of Trial by Jury:


For transporting us beyond Seas to be tried for pretended offences:


For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies


For taking away our Charters, abolishing our most valuable Laws and altering fundamentally the Forms of our Governments:


For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.


He has abdicated Government here, by declaring us out of his Protection and waging War against us.


He has plundered our seas, ravaged our coasts, burnt our towns, and destroyed the lives of our people.


He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation, and tyranny, already begun with circumstances of Cruelty & Perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.


He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.


He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.


In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince, whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.


Nor have We been wanting in attentions to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.


We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these united Colonies are, and of Right ought to be Free and Independent States, that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. — And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

 John Hancock

New Hampshire:

Josiah Bartlett, William Whipple, Matthew Thornton

Massachusetts:

John Hancock, Samuel Adams, John Adams, Robert Treat Paine, Elbridge Gerry

Rhode Island:

Stephen Hopkins, William Ellery

Connecticut:

Roger Sherman, Samuel Huntington, William Williams, Oliver Wolcott

New York:

William Floyd, Philip Livingston, Francis Lewis, Lewis Morris

New Jersey:

Richard Stockton, John Witherspoon, Francis Hopkinson, John Hart, Abraham Clark

Pennsylvania:

Robert Morris, Benjamin Rush, Benjamin Franklin, John Morton, George Clymer, James Smith, George Taylor, James Wilson, George Ross

Delaware:

Caesar Rodney, George Read, Thomas McKean

Maryland:

Samuel Chase, William Paca, Thomas Stone, Charles Carroll of Carrollton

Virginia:

George Wythe, Richard Henry Lee, Thomas Jefferson, Benjamin Harrison, Thomas Nelson, Jr., Francis Lightfoot Lee, Carter Braxton

North Carolina:

William Hooper, Joseph Hewes, John Penn

South Carolina:

Edward Rutledge, Thomas Heyward, Jr., Thomas Lynch, Jr., Arthur Middleton

Georgia:

Button Gwinnett, Lyman Hall, George Walton

Monday, June 28, 2010

THE CLOSING OF ST. JAMES IN LAKEWOOD

After attending this Parish for nearly 11 years and been a Parishioner for most of that time, this past weekend the Community of St. James said Farewell.

Saturday consisted of the Bishop saying the mass, although he was greeted by protesters:

Then on Sunday it was time for the Community to say goodbye one final time. It was nice to see that the Church was filled to overflow capacity.


As the Mass ended Fr. John had everyone process out row by row shaking the hands or hugging Deacon Jim Stewart and Danny Bryan.







Then it was time to say goodbye to Fr. John, Deacon Jim and Deacon Danny.


Fr. John Weigand
                                                               Deacon Jim Stewart

It was a beautiful day to say goodbye, but, it was bitter sweet. I am not sure which parish my wife and I will join going forward, but, it may take some time before I am comfortable again.

Thursday, May 06, 2010

This County is in Such Good Hands



To answer you Jimmie, the reason nothing positive is happening in town is because of your leadership or in this case the lack of it.

Tuesday, March 23, 2010

Congressman Paul Ryan on the Real Cost of Healthcare Reform

Its not a pretty picture,  which shows that we will all be paying the premiums, but also the taxes to cover the costs.



Based on everything I have read, there will be a lot more people paying a higher cost in taxes then they figured. The key theme is, I have yet to hear if there is some buffer as to when the taxes begin. Mostly you hear its the single person making $200,000 a year or a married couple making 250,000 paying an additional 6% or more in taxes. It also includes taxing on investments. So essentially, unless I have missed that certain nugget of information, then you begin to pay for this at dollar one. Not at a later dollar amount after the pre-tax benefits come out like the (401K).

One other bitch I have about this is, for the last several years I have set money aside for a Health Savings Account all monies taken out pre-tax. Now, under the new law, that money becomes taxable income, even if I don't use and just leave it in the bank.

So unless there are some changes, more people are going to have to pay in, then anyone is letting on. Perhaps when the law is viewed in a greater clarity some of these issues will be resolved, but, so far from the early readings and analysis, I don't think that will happen.

We may be spending the next four years tweaking this bill to get it good in the short term, but it will need some major work to achieve anything close to what Obama and the Democrats are saying it will do for Americans.

From Politico

Monday, March 22, 2010

Best breakdown of some of the issues of the Healthcare Bill

This is the best breakdown of some of the myths attibuted by Obama and the Democrats with the facts right next to it. Wish I seen this sooner.























 
Go read Jane Hamsher's piece that accompanies this chart.

Wednesday, March 17, 2010

Obama Trying to Sell Healthcare to America




Based on watching this, Obama would have made a very good trial attorney, specifically a Plaintiff's lawyer.

He can say nothing while talking a lot.

Don't be fooled, he doesn't know everything that is in the bill and he wants the Slaughter rule to be used.

He wants to say in 2012 or at some point down the line, I didn't get a lot done or solve many problems, but I got Healthcare passed.

Ladies and Gentlmen, meet Obama's Legacy.

All done in the first 500 days of his Presidency.

Kucinich To VOTE FOR HEALTHCARE BILL

Doesn't like the bill, but will vote for it.

More later

UPDATE

Cleveland Plain Dealer report asked is there was a Quid Pro Quo - Kucinich fenced the question away. Leaves me to believe that he did get something in return.

UPDATE II

Still going to work towards Single Payer system.


"Bill is still flawed"
"Looking at the Bill as it is not as he wants it"

UPDATE III - PRESS CONFERENCE OVER

Some more quotes from Rep Kucinich:

A defining moment as to moving off of square one to get healthcare;

Its about creating jobs, keeping people in their homes - need to move off debate to get on with other items.

Was asked again if there was a regulatory deal like the Louisiana Purchase or a Nebraska deal for the 10th District or Ohio, he said no, this change in vote is "taking a more historic movement of moving the contry forward"


When asked about the way the Healthcare bill is being moved through congress he said "Doesn't like much about this process"

Final message from Kucinich - Doesn't want the Obama Presidency ruined because of Healthcare legislation.

Thursday, March 04, 2010

Downsizing the Federal Government

Saw this article by Chris Edwards listing six reasons to downsize the government and in light of the Obama's attempt to increase the size of the government and quite possibly the debt via the debacle known as the healthcare plan, I thought it quite timely.

1. Additional federal spending transfers resources from the more productive private sector to the less productive public sector of the economy. The bulk of federal spending goes toward subsidies and benefit payments, which generally do not enhance economic productivity. With lower productivity, average American incomes will fall.
 
2. As federal spending rises, it creates pressure to raise taxes now and in the future. Higher taxes reduce incentives for productive activities such as working, saving, investing, and starting businesses. Higher taxes also increase incentives to engage in unproductive activities such as tax avoidance.

3. Much federal spending is wasteful and many federal programs are mismanaged. Cost overruns, fraud and abuse, and other bureaucratic failures are endemic in many agencies. It’s true that failures also occur in the private sector, but they are weeded out by competition, bankruptcy, and other market forces. We need to similarly weed out government failures.

4. Federal programs often benefit special interest groups while harming the broader interests of the general public. How is that possible in a democracy? The answer is that logrolling or horse-trading in Congress allows programs to be enacted even though they are only favored by minorities of legislators and voters. One solution is to impose a legal or constitutional cap on the overall federal budget to force politicians to make spending trade-offs.

5. Many federal programs cause active damage to society, in addition to the damage caused by the higher taxes needed to fund them. Programs usually distort markets and they sometimes cause social and environmental damage. Some examples are housing subsidies that helped to cause the financial crises, welfare programs that have created dependency, and farm subsidies that have harmed the environment.

6. The expansion of the federal government in recent decades runs counter to the American tradition of federalism. Federal functions should be “few and defined” in James Madison’s words, with most government activities left to the states. The explosion in federal aid to the states since the 1960s has strangled diversity and innovation in state governments because aid has been accompanied by a mass of one-size-fits-all regulations.



 
One thing that I have always thought that once you begin to take out more money from the citizenry, then there is always less for them to make purchases and thereby creating an economy or in the current climate no economy.
But, it seems to me that at every level of government they just can't seem to understand that.