With the State of the Economy in doubt and with numerous reports on various newstations reporting different numbers, we felt it necessary to update people on those reported numbers
WHO PAYS TAXES IN THE US:
- Top 1% pay 37% of all taxes
- Top 5% pay 57% of all taxes
- Top 10% pay 68% of all taxes
- Top 20% pay 85% of all taxes
- Bottom 50% pay 3% of taxes
- Bottom 25% pay no taxes
The top 5% percent pay 57% of all taxes and spend 30%. 80% of smallbusiness owners make 250,000+ a year. If expanding the numbers to include the top 20%, 22 million families or those earning over 120,000, pay for 65% of all taxes in the U.S. The 1st source above shows numbers from 1995 when Clinton was in office and at 39.6% matches obama's proposed budget announcement for 2011.
More on the affluent Tax Bill
I believe it may be time, if talking about taxes, to debate the FAIR TAX plan in forums around the country. The fair tax essentially eliminates any kind of tax including inheritance and death taxes and brings back transparency to the whole process as income earners will see a gross paycheck return for the first time in their lives. The tax would only be applied to consumption which automatically lets the buyer know what they are being taxed for and for how much. This will also control spending by some to more reasonable levels and get people to live within their means. Common sense tells you that when you are in debt, you must save. Currently we're being told to spend and that we would then be taxed for it in 18 months. Essentially business would currently be hiring new workers, expanding their programs and then be inable to writeoff any expenses + pay higher taxes. So any gains made, will quickly be washed away. Where's the common sense here? Who is going to attempt to grow their business with that kind of a plan? Whos' going to open up more offices, stores when the money spent on doing so will be washed away? This latest move by our president is truly revolting and flies in the face of prosperity. 10 pros and cons of the fair tax.
18 months from now, Obama will repeal deductions. This is a serious contradiction to his stimulus bill. Anyone, regardless of party affiliation should be worried about this latest move. This is common sense gone awry.
It is ludicrous to punish success and reward failure. This also stifles ingenuity and innovation. Why would anyone attempt to better themselves, as in doing so once that status is attained,only to get taxed to death for those accomplishments. I don't care what party affiliation you have, it just makes absolutely no sense. But we all know why this is happening, at least those who follow politics do. This is to award the lobbyists and constituants who helped vote democrats into congress and the senate. But republicans are just equally as guilty as they did nothing in stopping the 9000 earmarks in the latest proposed bill. It's politics as usual in congress and that is one constant that is apparently not changing. This is no time to play politics, and these old games should be done away with for the good of the country. Term limits need to be brought back into place to keep career minded politicians on track with their fiduciary duties, to work for their country's citizens, not their future in politics. With terms limits more things get done as every senator would feel urgency to deliver on promises.
For those who weren't aware, one of the biggest affiilates to Citigroup, Smith and Barney left weeks ago and joined another entity. With Singapore's prime minister approving the nationalizing measure of one of the biggest banks in the world, bank of america may follow. How does this affect you? It won't , your dollars are still insured with the FDIC(Up to $250,000 Now) but if you held stock with either banks, you are hurting right now.
They are now apparently also going after those who hold assets in banks in switzerland. Guess every dollar counts at this point.
Here's the problem with the current budget; 80% of tax payers or those earning 250k or more are small business owners. The taxes incurred on them will be passed down to the employees working for those business owners. So this ideal that lower income earners will not get taxed is a lie. Wages for associate managers and those in secondary leading roles will decrease, especially if the minimum wage gets increased as obama suggested he was going to try to do once in office. A small tax credit has been given to those who earn less than 75,000 but should not offset the total amount lost across the board.
The biggest possible future problems consist of impending inflation, which may occur when everyone spends their money at the same time once the economy shows sparks of life in a year (+/-).
Right now a possible depression can be contributed by the following; taxes on businesses, over-regulation of business, and import taxes. Unfortunately with that said, we're going down that road once again. On a positive note, if there is one, and there is: The U.S is looking better than most countries around the world. Japan is in terrible shape, and the european union is having problems with eastern countries asking for bailouts as Hungary recently did. Germany however, said no, and this may be repeated again in the near future. Protectionism in Europe is certainly growing and a Global Deal may be on the books as UK"s Gordon Brown proposed but highly unlikely to be taken into consideration.
CURRENT BILLS DO THE FOLLOWING:
- A family (2 or more) making $250,000+ would see an $11,600 tax increase
- A family (2 or more) making $120,000 would see a $6000 tax increase
- A family(2 or more) making $76,000 would see an $800 tax reduction
- A Family(2 or more) making $36,000 would see a $1200 tax reduction
- A single Individual making $36,000 would gain a $400 tax credit
- A couple making $36,000 would gain a $800 tax credit ***
- Add $714 Billion dollars to the baseline budget.
- add $13 a week for those earning 250k o less, after which it wil be $8/wk
- Housing plan to help 9 million home ownersTax credits would go to offset costs past down from small busineses owners.*** - increased to 1000 and made permanent
Analysis: War on the top 30% of the economy. End of prosperity.
PROPOSED ENERGY BILL: (more)
$300 Billion dollar tax on anyone who uses the following services:
- Heating Oil
- Natural Gas
Obviously this proposed bill makes the notion Obama made last year, that noone making less than 250k not being taxed, as false.
OBAMA'S NEW BUDGET PLAN: (Complete Plan)
- 3.5 TRILLION Dollar Total Budget
- $989 Billion in new taxes (over 10 yrs, starting in 2011)
- 2.6 Trillion borrowed in 2009
- 1.1 Trillion will be borrowed in 2010
- 3.6 Trillion will be spent in 2010
- Saves 300 Billion in interest on the national debt
- 1.5 Trillion in savings for winding down the Iraq War
- Would bring deficit down to 537 Billion by 2013
- Would tax small business owners 40-50% in 2010
Those making 250k or more: (Total - $636 Billion over 10 years)
- $118 Billion towards a Capitol Gains Hike (starts in 2011)
- $338 Billion towards the expiration of the Bush Tax Cuts
- $179 Billion towards eliminating itemized deduction
Businesses:(Total - $353 Billion over 10 years)
- $5.3 Billion excise tax on Gulf of Mexico oil and gas
- $210 Billion towards internation enforcement and other tax reforms
- $62 Billion to repeal deduction for tertiary inejectants
- $24 Billion towards tax carried-interest as income
- $5 Billion to codify "economic substance doctrine"
- $3.4 Billion to repeal expensing of tangible drilling costs
- $49 milion to repeal massive loss exception for interests in oil natural gas
- $889 million to eliminate advanced earned income tax credit
- $17 Billion to reinstate Superfund taxes
- $1 Billion increase to 7 years geological and geophysical amortization periods
- $13 Billion to repeal manufacturing tax deduction for oil and natural gas co's
- $61 Billion to repeal LIFO
- $3.4 Billion to repeal expensing of tangible drilling costs
- $634 Billion(over 10 years) to be set aside in a reserve fund for changes in health care system
- 250k+ - 39.6%
- NASA'S Budget to increase to 18.7 Billion from 16.3 Billion
- Those donating all their income to charity would still be taxed over it.Obama's Hope: For the deficit to halve by 2013.BUDGET SUMMARY TABLE (Caution: this may boggle your mnd)
STATE OF THE ECONOMY
- Unemployment: 7.6% (rose .4% from jan) Largest increase in white adult men (+2.5% since 3q 2008)
- Currently 11.62 Million people are unemployed in the U.S
- Avg 30 yr fixed: 5.06%
- Avg Home Prices: -18.3% (lowest ever)
- Median Home Value: 170,300 (lowest since q3, 2003)
- Avg Home Sales in Jan: -5.3%
- Economy Contraction: -6.2% (over 3 months) worst ever
- Nation's Current Debt: 10.9 Trilion+
- EArnings have gone up $1.88 since 3q 2008)
- Dow Jones (6763) Lowest since 1997. Went down 299.64 points today (3.2.09)
- Dow Jones down 38% since September 2008.
- 2.2 Trillion in wealth lost in Dow Jones in 2009
- S&P down 11% to 700.82 in february (2nd worst since 1933)
- 30 Trillion Dollars in Stock Losses since Q1 2008. (7 Trillion was lost from q3 2007-q1 2008)
- 4 Trillion Dollars lost in Housing values since 2006. (23%)
- Exports fell at an annual rate of 23.6%, down from 19.7% (sharpest fall since 1970)
- Bill Bernanke has estimated the recession to continue into 2010, w/possibility of recovery
- Avg Nation Gas Price - $1.92/gallon
- Consumer spending down 4.3% in Q4 2008 (biggest fall since Q2 1980)
- Warren Buffet net worth - 49 Billion (from 89 Billion in q1 2008) - Proclaimed "Worst economy on record"
- 1 out of 5 homeowners in under water(ows money to lender)
- 1 out of 8 homeowners is in forceclosure or negotiations
- 1.3 Trillion inherited from Bush(not verified)
- 274,399 Foreclosures in January
- There are currently 11.620.000 Million people unemployed
- 20% of all teenagers are currently unemployed
- There are currently 47 million people without health insurance
- 2.4 Trillion is spent each year on healthcare
- MGM Grand - 13 Billion in debt
- 4.4 Million jobs have been lost since December 2007
- 50% of all jobs have been lost in the last 4 months alone
- New home construction up 22% since January 2009
- Home construction down 48% since February 2008_______________
- Singapore: Down 35%
- Taiwan: Down 43%
- Japan: Down 46%
HAPPENINGS AROUND COUNTRY:
- $12.5 Billion tax increase
- Cuts $14.8 Billion in spending (8.6 Billion in education alone)
- $5.4 Billion in loans
- Receives $7.8 Billion in stimulus funds
- Currently has a $42 Billion deficit_______________BAILOUTS
- 45 Billion to BofA (10.28.08)
- 45 Billion to CitiGroup (10.28.08)
- 40 Billion to AIG (11.25.08)
- 30 Billion to AIG II (3.2.09) (61.7 Billion in revenue loss - Largest in U.S history)
- 25 Billion to JP Morgan (10.28.09)
- 25 Billion to Wells Fargo (10.28.09)
- 14.284 Billion to GM (12.29.08)
- 10 Billion to Morgan Stanley (10.28.08)
- 10 Billion to Goldman Sachs (10.28.08)
- 7.579 Billion to PNC (12.31.08)
- 6.599 Billion to U.S Bancorp (11/14/08)
- 5.5 Billion to Chrysler (1.2.09)
- 5 Billion to GMAC (12.29.08)_______________
- BANK BAILOUT 3: Proposed 750 Billion in added bailout money for banks
- AIG asking for an additional 30 Billion (3/17/09)
- GM II , Ford, Six Flags, Station Casinos, Univision, Rite Aid, Visteon
- Hidden bailout for GE?_______________
TEA PARTY REVOLTS: (40 cities took part on 9/27/09)
- San Diego, California (9/28/09)
- Sarasota (9/28/09)
- New York, NY (9/28/09)
- Wichita (9/27/09)
- Atlanta, Georgia (9/27/08)
- Los Angeles, CA (9/27/07)
- Chicago, Illinois
- $1.75 Trillion deficit (12.3% GDP) - (was 21.5% of GDP in 1945)
- If unchanged, will add 3.7 Trillion to debt in 20 months.
- If unchanged, would add 4.7 Trillion to national debt by 2013
- If unchanged, would add 7 Trillion to national debt by 2019 (3x as much as bush added in 8 yrs)_______________TAKEOVERS
- 36% vested interest into citigroup
- "stress tests" will be applied on the nation's largest 20 banks.
- Catholic Hospitals?
- Bank of America?_______________LINKS
Educate yourself to the numbers and the history of these recessions and you will be in better position to know how to compensate for the lack of common sense being employed in washington as Economics 101 says that taxes put on companies are trickled down to the consumer with higher prices on goods and services.