Understanding taxes (if that is possible?)

Unfortunately taxes are a necessary part of life. Generally speaking we don’t like paying them. But we do. Every year we file our income taxes – state & local, as well as pay city, county, social security, fica, etc. The list is exhaustive. Our current tax plan but into place under President Bush is set to expire soon so whatever the new President puts into place will affect us all greatly.

First I would like to point out that when talking about the current budget deficit critics are quick to blame the Bush tax cuts for the so-called wealthy for the deficit. In reality this is not the case. Revenue is the highest it has ever been. The cuts on capital gains taxes has brought dramatic increases in federal revenue. Truly. The increase in the deficit has to do with being in a war and government spending having increased by over 30%. It is highly inaccurate to blame the tax cuts for this situation.

Both plans have plenty in them to make you question what is the better choice. As well, there are exhaustive views and commentaries to support whichever view you support. On paper they seem to not have that much of a difference in the overall economic picture, as mentioned in the clip below.

From – How McCain and Obama will change your tax bill.

Under both plans, all American taxpayers could pay a price for their tax cuts: a bigger deficit. The Tax Policy Center estimates that over 10 years, McCain’s tax proposals could increase the national debt by as much as $4.5 trillion with interest, while Obama’s could add as much as $3.3 trillion.

The reason: neither plan would raise the amount of revenue expected under current tax policy – which assumes all the 2001 and 2003 tax cuts expire by 2011. And neither plan would raise enough to cover expected government costs during those 10 years.

“Distributionally, they’re markedly different. But in terms of their impact on revenue, the two plans are not terribly different,” said Roberton Williams, principal research associate at the Tax Policy Center and the former deputy assistant director for tax analysis at the Congressional Budget Office.

The differences come from how they are put into place and what the ramifications of each would entail.

So here it is:

McCain-

• Keep Tax Rates Low
• Cut corporate tax rate from 35% to 25%
• Allow First-Year Deduction, Or “Expensing”, Of Equipment And Technology Investments
• Establish permanent tax credit equal to 10% of wages spent on R&D
• Ban Internet Taxes
• Ban Cell-phone Taxes
• His most radical adjustment to the tax system which is not being mentioned as much in the tax portion is his health care credit. – “Transforming The Tax Code To Create Greater Equity: The McCain plan transforms the current tax code to provide all American families – including the self-employed and the uninsured – the same tax benefit, a $5,000 refundable tax credit ($2,500 for individuals) that was previously only available to those with employer coverage. Families can use this credit to purchase insurance of their choice, including keeping their current coverage.”
• As well by not raising capital gains taxes the wealthy will continue to invest at a time when it is most needed to help our economy. If those taxes are raised the level of investment WILL drop.

Douglas Holtz-Eakin, senior economic adviser to McCain, notes that many reports does not take into account the spending reforms – such as eliminating earmarks – that are central to McCain’s strategy to support tax relief and help reduce the deficit.

Overall, we would all continue to do well under this plan.

Obama

• Cut taxes for 95 percent of workers and their families with a tax cut of $500 for workers or $1,000 for working couples.
• Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.
• Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of health care and to reward investments in innovation.
• Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms, and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant.

Obama proposes a radical change in the tax system to cut taxes to the bottom “95%” of wage earners. Unfortunately this has major implications as well. It sounds good but there is much more to it. 50% of wage earners do not even pay taxes. So while what he says may be technically factual . . . the plan increases the number of welfare recipients, and extends the poverty trap of poor households.

What it really means is that he is reintroducing a massive increase in the welfare state, costing about $30 billion per year. According to the Center for Data Analysis’ micro-simulation modeling, Obama would increase the number of tax filers who receive a check from government without paying any taxes, including payroll taxes — people filing just to receive a welfare check — by about 10 million. Where will the $30 billion per year come from? From those who are paying taxes, of course. And indirectly from all of us, when the economy is dragged down by higher tax rates on businesses. – from The FoundryBut it does not stop there, raising business taxes, national health care, etc. There are many facets to this plan that will have a trickle down effect. While taxes may go down for the lower income families, companies that are also hit by tax increases will raise prices, lower salary, cut back on jobs which in turn will all effect the very same people that Obama is out to help.

Another good article on Obama’s 95% tax plan

To the surprise of some, even though Senator Obama’s tax plan lowers taxes for the bottom four quintiles, marginal tax rates would fall only for the very lowest-income couples. Taking both income and payroll taxes into account, those at the very bottom of the income distribution would see their effective marginal tax rates fall from 27.4 percent to minus 58.6 percent due to proposed changes to the earned income tax credit and Senator Obama’s new “Making Work Pay” credit.

Most low- and moderate-income couples would see their effective marginal tax rates rise, in some cases, significantly. Indeed, some low- and moderate-income taxpayers will see their marginal rates rise to more than 50 percent.

High-income taxpayers can also expect their effective marginal tax rates to rise—to 47.2 percent-under Senator Obama’s tax plan. This increase is caused by rolling back the 2001 and 2003 reductions in the top two tax rates, curtailing deductions and exemptions at high income levels, and potentially raising Social Security taxes. – The Tax Foundation

Now some commentary:Aside from the overall theory of wealth redistribution, which some may relate to socialist types of theory, that does not help the economy in the long run. There should never be total equality in income. The neurosurgeon and the fast-food worker should not have the same salary. There has always been brackets, or castes if you want to call it that. Equality as a person is not equated to equality in income or possessions. All people are created equal, but it pretty much stops there. We all have different aptitudes and abilities and will work where we are best suited. The driven individual will work hard to become successful and then will be told, “Hey, we need your money to help Tom, he does not have as much as you and you have to share it with him.” That is wealth redistribution. I should not HAVE to give money I work for to someone else because they are not making as much as I am. It does not work.

The definition of “wealthy” to be $250,000 does not allow for areas in our country where while that sounds like an amazing annual income, it is not. California and New York are two prime examples. This article explains it well, better than I can.  – Tax Rates for New Yorkers would top 50% under Obama.


I was talking to someone yesterday who has valid fear of losing his home under the Obama tax plan since he does make $250 in one of those states. He has a family of five and is scared that he will not be able to afford the mortgage he saved for years just to get. As well I spoke to a mother who has lived in a socialist country and said she does not want to go there either, giving examples of the lack of incentive to the worker because they don’t care anymore. While it sounds good to the supposed 95% of the country the other five pump money into the economy to keep it moving, fund most of the governments revenue already, and are the most positioned to give generously.

I am in favor of encouraging and rewarding people to work hard. To earn what they have. Not to blindly give more to them to try and make things more. While a plan might sound good on the surface it deserves to be looked into further to see what the actual ramifications and implications are to all citizens. If we are being fair and equitable, you will remember that that upper five percent helps keep our economy and businesses running. Personally I am a fan of the Fair Tax plan. I hope that one day it comes around as a possibility again.

Look closely at the lines for $111,000 – $226,000 – According to those estimates you will actually fare better under the McCain plan. Curious.

A final thought -

Tax studies have shown that when tax cuts are deficit funded and they’re paid for by raising taxes in the future, “the economy is worse off than if you didn’t cut at all,” Burman said.

A Bit of Joe and Campaign Spending – what an excess

So I just don’t buy the “I am one of you” stuff that Obama tries to perpetuate. He is not your average middle class guy. He lives in a house he paid $1.6 million for. (ok, i know that in california that is still a shack – but in most of the rest of the country that is a big ole nice house)

And just in case you were wondering here are the specs on the house. It is not tiny.

This 3-story, 96-yr-old Georgian is close to the hustle and bustle of Chicago’s South Side. But with 4 fireplaces and a 1,000-bottle wine cellar, you may never want to leave. Sold for $1.65 million in 2005. Upgrade your property when your next-door buddy (before his felony trial, of course) sells you part of his plot!

Will not even touch on the next-door neighbor bit.

So now for relating to the middle class on income- In 2000 the Obama’s income was about $240,000.  By 2006 they were up to a whopping $984,000. Not forgetting in 2005 they passed $1.6 million.

And they don’t appear to be the most charitable as far as their giving of their vast income goes. The max they gave through 2006 was about 6% of their income. So he is not really going out of his way to give to the middle class or to those less fortunate.

So I am not sure I buy that he is really in touch with his constituents. I think he is just as out of touch with reality as you can possibly be. Don’t you just wonder what he would actually think had he been left to form his own opinions?

On the whole Joe the Plumber mess. Just because he got stuck saying something that now the democrats have to cover for.

Barack actually said this,
“It’s not that I want to punish your success. I want to make sure that everybody who is behind you, that they’ve got a chance for success, too. My attitude is that if the economy’s good for folks from the bottom up, it’s gonna be good for everybody. I think when you spread the wealth around, it’s good for everybody.

Nice. So he has not really been spreading his wealth around, but he wants to make sure that the rest of us do. Frankly I would like to spend the next four years just skating through comfortably and hold off on becoming considered “wealthy” until government understands that people who work hard for their money and earn it will share with others. At a higher percentage point than Obama and his family do. Because they will appreciate what it took for them to get there. I don’t understand why it is okay and considered “the right thing to do” to give hand outs to people who are capabale of working and providing for their families. (I understand there are always exceptions to the rule)

But back to Joe, this is my favorite description of the ridiculous assertion by some democrats that Joe the Plumber was a plant.

Ace says………

TEN YEAR REPUBLICAN SCHEME PUTS COVERT “GOPERATIVE” JOE THE PLUMBER IN EXACT HOUSE WHOSE DOOR BARACK OBAMA WAS DESTINED TO KNOCK UPON

I got news for you: Whatever door Obama knocked on, Joe “The Plumber” Wurzelbacher (aka Agent X-88 Delta) would answer. Agent X-88 (and his “son,” the midget French acrobat/psychic assassin “Joey”) lived in all the houses in the neighborhood, each connected to the rest by a series of underground tunnels.

Now on to my campaign spending rant.

He has raised a massive $650 million dollars. What is that about? That is more than both candidates spent combined in the last election! What an indulgent waste. He went back on his pledge to take public financing which McCain stuck with. Combine that with the deep pockets of Hollywood, who are by nature fanatic liberals totally out of touch with reality, and there is no way for McCain to combat that. And frankly he should not have to.

Why does it feel like the vote is for sale?

That whoever can spend the most, sell the most, be the celebrity is going to win?

This is not just a popularity contest. If we were voting for Mr. America that might be one thing. But this is for the president. It is not a game show. Why not actually focus on issues instead of trying to outspend each other and put on a bigger “show”. McCain will never be able to outspend you Mr. Obama and frankly I am glad for that. I would actually be more bothered if my candidate were spending as much as you.

With our country in hard economic times I find it disturbing that you are choosing to use this money to do such ridiculous things like putting ads in video games, buying prime time space the week before the election, etc.

I could come up with some more useful things you could do with $650 million dollars to help your base. The “hurting middle class”. And if you have this thing as wrapped up as your pundits like to think you do, then why are you going to the obscene lengths that you are to spend more money? And take more money from those who are hurting? You don’t need any more money to promote yourself. Give it back. That would show more character than keeping it and squandering it on ads that are unnecessary.

Things to do today

Well, there are a couple of things you can do today for your GOP. Besides making sure you are registered to vote. I know the deadline has already passed in some states. But check and make sure. (I would steer clear of registering through ACORN!)

Have you seen the site Team Sarah? It is a large group of men and women who support Palin as Vice President. I just joined and there are currently over 8000 members! Way to go.

Join in over there and show your support.

And today an email went out from the McCain campaign. They are looking for your story. How you are Joe the plumber.

That’s why we want to hear from you and share your story with the American public. It’s simple … make an ad telling us why you are “Joe the Plumber” in 30 seconds and we’ll put the best ad on the air as a TV ad.

Share your story of living the American Dream, working hard, or owning a small business to tell America why you’re standing with John McCain and Sarah Palin. Click here today to learn more and submit your video before Friday, October 24th.

Then help us spread the word about this exciting opportunity – tell your friends to visit JohnMcCain.com/Joe to submit their own video and share their story.

(And follow me on twitter too)

Lies, Slander, Libel – Oh My!

Lies, slander, libel, whatever your choice term is, They are false or malicious claims that may harm someones reputation. – Taken from Wiki.

Have you noticed it is more likely to be called slander or a lie if it is against whichever candidate you support?

I think the McCain and Obama camps have both been guilty of this. And complaining about the other one, is like the pot calling the kettle black.

(And please know that is not a racial slur here. If the saying could have been called the kettle orange I would have said it. But it is a very old saying with no malice or prejudice.)

It is not just slander because you don’t like what they are saying or they are denying what is being said. If you do read about these topics you will find there is some truth being purported as lies.

Read fact checking websites. Find reliable sources to back you up. Emphasis on reliable.

If you hear something you feel is questionable, research it yourself, from more than one place. Your source for news cannot be the same place all the time, every time. There is little room for denying that there is a bias on each and every media outlet. The spin is rampant.

All of them.

I personally think as a whole they tend to sway to the left. Except that FOX sways to the right. So there is no big surprise that I watch Fox. But I do watch CNN. I read news on CNN, MSNBC, FOX, Factcheck, local newspapers. I look at multiple sources and weigh out the answers.

It is my responsibility and right to make up my own mind. To do that I have to be educated. Not in the school sense, but I have to know what the issues are, read about candidates stances, check out stories as they come to light.

Place a basic litmus test on them and determine validity before you jump to conclusions. You might be surprised at the answers when you seek them.

You shall know the truth and the truth shall set you free.
How applicable.
How simple.
How true.

Just remember that your worldview is different from your neighbors. Each is shaped by so many different facets of life and personal values and beliefs. No matter how much you might try to convince me I am wrong. You won’t. It does not jive with my perception of right and wrong. I understand that about others too. It does not make me happy, but I don’t expect us all to think and believe the same things without controversy. If you choose to just believe and jump on the bandwagon you are just as bad as the lie you choose to perpetuate.

Personally, I think that some of the places they are going with smearing in this campaign are just going too low. And ultimately irrelevant.

Accusing Palin of lying about her baby? How absurd!
Implications and accusations against John McCain as a POW?

Obama and Biden have been subject to criticism that I find unfair and irrelevant as well. I find some of the Obama issues to be more issues with association and credibility. I do believe that you are ultimately who you have out with.

McCain and Palin are not racist, extremists spreading lies and hatred. Each camp thinks they are the ones that should win. Why can’t they focus on what THEY can offer and not bashing what the other guy does? Talk about themselves. I am tired of hearing hate speech all the time. Can’t you share the benefits of your guys plan instead of bashing personally all those who do not agree with you?

McCain is correcting people. There are extremists on both sides. Just take a peek at the DailyKos to see the far left extremists. There are also people who are just ignorant and don’t know any better. Not that there is an excuse for that, but McCain is also not responsible for their lack of knowledge.

I am pretty sure that there are plenty of people booing and yelling nasty stuff about Bush, McCain, and Palin at Obama rallies, but you are not hearing about that. Wonder why that is?

I can’t put my finger on it, but there is something about Obama that I just don’t trust, and that goes beyond just simply disagreeing with his political views.

I wish the corruption in our election process could end and we could simply focus on critical important issues instead of trying to best each other.

Looking forward to the last debate. Let’s hope we all get through with as little mud-slinging as possible.

QOTD

Ok.

So last night both Obama and McCain made reference to “letters” they had sent warning of all kinds of things. Well, that is just exciting guys. You sent a letter.

So does that mean that I will be able to say one day,

“I sent a letter to Boxer, Eshoo, and the Finance Committee warning against the Bailout Bill and that it should not be signed and they did it anyway?”

I just want to know if I get to use that in my campaign too.

I have a sense of humor too . . .

Just to show that I have a great, smashing sense of humor, I am linking to a few hilarious videos from some of my favorite people, the guys over at JibJab. I loved their videos during the last election. I can’t decide if This Land or Second Term were my favorite! I still enjoy watching them and they crack me up. I love good satire.

I tried a few days ago to post one but could not get it to work, then I found then on youtube.This is the one I was looking for and I just think it is cute. I have found some more that I think are funnier, but this one is the one I was trying to post.

Now granted these are not the ones that I wanted to share but they made me laugh. I am a big, huge fan of High School Musical. I am looking forward to the premiere of HSM 3 later this month. Imagine my surprise to see that they have taken a dance scene from the movie and “jib-jab”ed it. You can even have your choice of presidential candidate!

Here is the McCain/Palin version:

And for the Obama/Clinton crew:

And finally, the one about the campaign.

Hope you at least watch one and then head over to JibJab to see the rest!