As The Curtain Lifts

I read in this morning’s The Villages Daily Sun that there is a move afoot in Congress to repeal the part of the health care law that requires all businesses to file paperwork on all of their vendors from whom they buy $600.00 goods or services in a year. Small businesses are up in arms because of the expense and massive amount of paperwork required to accomplish this. Democrats and Republicans are both in favor of repealing this section of the health care law.

It was allegedly incorporated originally to collect $19 billion of estimated unpaid taxes. $19 billion to help “pay” for the bill. That the health care bill would pay for itself was just plain incorrect. Now the curtain is being lifted.

Oh, Good. Another Bailout

President Obama announced another bailout. It’s not likely to work, but he has to do something besides blame the “previous administration” for the economy.

Here’s why government spending won’t fix the economy: Government money has to come from somewhere.

  1. Taxes. Taxes come from the economy in the first place, so the net effect of government spending from taxes is zero.
  2. Borrowing. Sure that puts extra money in the economy, but because of the interest, each dollar spent is worth less than a dollar.
  3. Printing. Each extra dollar printed reduces the value of all the dollars already in circulation. Thus, each dollar spent is worth less than a dollar.

Government spending doesn’t create new wealth or extra jobs, it just redistributes money from those who pay taxes (or loan the government money) to those who help politicians get elected. 1I had a little help here from Glenn Beck’s Arguing With Idiots.

Footnotes   [ + ]

1. I had a little help here from Glenn Beck’s Arguing With Idiots.

Federal Income Taxes and You

 The Congressional Budget Office released the following figures: 1Historical Effective Tax Rates: 1979-2005. Released December 2007

 

% of
Population
Approx Annual
Income
% of Tax
Burden Paid
Top 1% $1.3 M or more 38.8%
Top 20% $512 K or more 86.3%
Top 40% $58 K or more 99.4%
Bottom 60% Less than $58 K 0.06%
Bottom 40% Less than $37 K 0.00% 2Many in the category will get money “back” even though they paid no taxes.

 

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Footnotes   [ + ]

1. Historical Effective Tax Rates: 1979-2005. Released December 2007
2. Many in the category will get money “back” even though they paid no taxes.