Free Markets, Free People

Taxation

It’s tax day … sorry, I’m not in the mood

After considering the check being written by me to the scumbags that run this joint, I’m not in a particularly good mood.  They’ll waste it as we all know.  There are millions, if not billions of items or programs or, well you name it, that government has no business even being near that they’re up to their rear ends in.  And, as we’ve said a million times, government’s have no money … they can only tax it or borrow it.  At this very moment, while they’re taking an obscene percentage of what I worked very hard to make last year, they’re planning on borrowing even more to spend on crap like this and tell us it’s “necessary.”

Anyway, this is as good as it gets today.

See you tomorrow.

~McQ

Obama’s Orwellian budget claim in pictures

Orwellian, in that his claim is as follows:

President Obama is marketing his new budget by saying it has “more than $2 in spending cuts for every $1 of new revenue.” Is this true?

In a word, no.

In fact, his spending increases and advertised spending cuts cancel each other out—leaving only a massive tax increase.

Here’s a graphical representation of the point:

Yeah, I know … big surprise.

A politician lied again.

Wow.

~McQ

Obama budget proposal should be DOA

Apparently President Obama is sure his newest budget proposal is so good there’s no room or need for negotiation.  Or so a senior White House official says:

“We don’t view this budget as a starting point in the negotiations. This is an offer where the president came more than halfway toward the Republicans,” a senior administration official told reporters Tuesday, speaking on condition of anonymity to detail the forthcoming document.

“So this is our sticking point,” the official said. “And the question is: are Republicans going to be willing to come to us to do serious things to reduce our deficits?”

Obama is proposing a $3.78 trillion dollar budget.  Estimated tax revenues for 2014 are  $3.22 trillion.  Yet, this is being touted as a “budget cutting” budget and the White House claims it is exactly what the Republicans have wanted.

What … another deficit?

By the way, I don’t want “reduced deficits”.  I want NO deficit.  I.e. any budget that begins with an amount higher than the estimated tax revenues for the year is Dead On Arrival.

And that’s precisely the declaration this budget (like all the other budgets Obama has submitted) deserves.

DOA.

~McQ

Damned “Southernomics”

In light of Michal Lind’s fantasy about the South, another indicator of how wrong he is:

State Farm, the nationally-known insurance chain headquartered in Bloomington, Illinois, has apparently had its fill of “The Land of Lincoln’s” confiscatory taxes.  The 800 million dollar company is reported to have purchased “substantial workspace” in the Dallas, Texas area. The giant insurance firm’s workers are being kept in the dark reportedly to avoid “alarming them”; but is it their workers or the State of Illinois they would like to keep in the dark about this move? If this doesn’t signal State Farm’s coming dash out of Illinois’s clutches, what could it mean?

A knowledgeable Dallas real estate insider has called this impending move “a major business relocation” of record-breaking proportions. The numbers involved are approximately 2.5 million square feet of workspace and thousands of workers. No company in Dallas’ history has made a move this large.

Texas isn’t the only state State Farm is running to. There has also been a report that it has leased office space in Atlanta. The combined amount of both new locations roughly equals the 3.5 million square feet it has in Bloomington.

Why?

These moves should come as no surprise to anyone.  In spite of (or maybe because of) raising its corporate and personal income tax rate by 67% in 2010, Illinois has seen its credit rating fall and its deficit raise.  A review of the tax structure in Georgia shows the personal and corporate income tax is 4% as compared to Illinois’ 6.25%.

Texas has no personal or corporate income tax.

But, you know, the South has just replaced physical slavery with economic slavery – and all those Texans and Georgians who will benefit from employment with State Farm after the move know that only too well, don’t they? /sarc

I’m sure the taxes are just part of the reason.  Most likely the complete business atmosphere in the South is more likely the draw.  A welcome mat instead of a outstretched hand have to be appealing.  The same thing is happening in a number of northern states – the difference being the fiscal mess of today coupled with the difference in Blue state remedies vs. Red state remedies has started to turn a trickle exiting Blue states into a flood.

~McQ

Another country from which to “learn”

The question, as posed earlier concerning Britain and France, is will we?

Electricity prices are rising in Germany – and citizen with a low-income are suffering particularly. They are at risk of fuel poverty. 10 to 15 percent of Germans are now struggling to pay their energy bills. 600,000 households have the electricity turned off every year.

Remember, Germany ran scared after the Fukushima disaster and dumped nuclear power (because, you know, German has so many earthquakes and tsunamis).  They then went “green”.  Result?  See above?

Other result?

The CEOs of manufacturing industries are warning that production in Germany is at risk because of low energy prices in the United States. The energy prices there are now only a third of those in Germany. “Many industrial companies are planning to build new factories in the U.S. and not in Europe because of low energy prices there,” said Gisbert Rühl, chief of steel trader Kloeckner. “We are now reacting to this development and plan new business units in the United States.” To move production to the U.S. is especially attractive for companies in energy-intensive industries such as steel and aluminium or chemistry.

That would seem to be good news for us, no?

Well, it should be … except for the Democrats plan to raise taxes on the oil companies.  And Obama’s new wave of regulations.  Oh, and the Obama desire to see fuel prices “skyrocket”, ably aided by his Secretaries of Energy and the Interior.  And the EPA.

Etc.

~McQ

Tax on the rich? Boy it didn’t take long to spend that, did it?

Remember, this “tax fairness” was something which was going to solve our fiscal problems, if you listened to the left’s claim that is.  However, reality is fairly brutal and usually doesn’t much pay attention to rhetoric based in lies and stupidity.  Case in point:

Congress is poised to clear the final $50 billion chunk of emergency aid for Superstorm Sandy relief Monday — and in one vote, it will have used up all the new tax money President Obama won by raising rates on the wealthy in the “fiscal cliff” deal.

The “cliff” … well they’re busily engaged in trying to see if they can kick the can nearer the edge and, by the way, make the “cliff” a little higher while they do that by raising the debt limit … again.

Meanwhile, let’s talk about immigration, gun bans and whatever else our “leaders” can think of to distract us from this pending disaster.

‘Kay?

~McQ

Just in cased you missed it, our problem STILL isn’t revenue

I continue to be stunned by the apparent willingness of all involved on the left to whistle past the graveyard when it comes to understanding what our fiscal governmental problem is and how to fix it.  Here … let’s try a picture:

Oh, look … it’s spending.  Specifically, spending on entitlements and interest on the money we’ve borrowed to do so.  And what are we talking about cutting?  The military, of course.  Because, you know, it is in the blue slice of the pie.  Make sense?

Pac Man’s revenge.  By 2050, he will have swallowed all of the blue.

But, hey, it’s “absurd” to argue about raising the debt limit. By the way, does anyone remember when Sen. Obama declared that raising the debt limit signaled a failure in leadership?

Ahem …

~McQ

And now the “rich” will pay…

I hate to say “I told you so”, but it isn’t just the rich who will be paying increased taxes. And what should be clear to anyone with the I Q of a turnip, is that this will cost people their jobs.

The compromise called for taxes to rise to 39.6% from 35% on personal income above $400,000. In a 2011 study, the Treasury Department found that raising taxes on incomes over $500,000 would affect roughly 750,000 small businesses organized as S-Corps, partnerships and other small entities.

Of course, you remember the Democrats claiming that this wouldn’t affect small businesses. Well, that was a flat out lie. But then we live in an era of lies which, if there political apparently, we’re willing to overlook. While most of us are. I just had to be one of those who isn’t.   Not that Democrats are the only political liars, but they seem to be the most prolific and the most blatant. Especially when it comes to budget, deficit, and financial matters. They are the quintessential “snake oil” salesman.

And they have sold us are huge bottle of snake oil.

Couple these tax increases with the Obamacare taxes that kicked in on the 1st, and you have two reasons for 750,000 small businesses not to hire. And you can bet none of them will go over 50 employees, and some may even reduce staff to get under that number.

These are your “rich”. They happen to be the “rich” would generate jobs, or what have, if they hadn’t been hit by two new taxes this year.

Your government at work.

~McQ

“Fiscal cliff deal”: 41:1 tax increase to spending cuts. Great job! [update]

In case you’re looking for an “fiscal cliff” bottom line, here it is in one sentence.

According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.

If there’s any good news in this “compromise” bill, it is that the Democrats will get their tax on the rich, and it will make absolutely no difference in the debt.

As we’ve been saying for years, it’s not a revenue problem, it is a spending problem.

In  fact going over the fiscal cliff is not been avoided, the chasm has just been deepened. Or said another way, the can has been firmly kicked down the road.

The word of the day?

“Disgust”.

UPDATE: In case you were wondering what this means in nice round numbers in terms of debt:

The fiscal cliff deal approved by Congress will increase deficits over the next decade by close to $4 trillion, according to the Congressional Budget Office.

Like I said, in full sarcasm mode, “great job!”

~McQ