|
|
 |
|
|
|
|
TAXES: This is the “FEAR CARD”!
Every time I see a politician who wants to scare the hell out of
everyone, they use this subject! They do it over and over again! Even worse, they make
this sound worse than death!
Think
of the following words: “road”, “bridge”, “health care”, “research”,
“policeman”, “fireman”, “security”, “veterans”, “education”, ”defense”
and “social security”.
Do
any of these words scare you? Of course not! It is simply a matter of perception. Every one of those words represents an element our taxes support.
The other thing politicians, and in particular Republican politicians, like to scare you with are deficits.
To listen to them, you would think they had nothing to do with the deficits this country is facing!
The deficits President Obama is being accused of creating, were inherited from President Bush either directly (his
budget) or indirectly (his activities set in motion).
I have already commented on the size of the United States
Budget and how difficult it is to change in the short term.
I have already commented on the fact that most of our deficits were created by Republican Presidents.
In the event you missed that, I will repeat the chart here.
Deficits created By President
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | | | | | | | | | | | | | | Surplus | | | | | | | | | | | | | | Surplus | | Receipts | Outlays | (or) | | | | | | | | | | | Fiscal | | | (or) | | % | % | Deficit % | House | Senate | Dem Pres | Rep Pres | | | | | | President | Year | Receipts* | Outlays* | Deficit* | GDP* | of GDP | of GDP | of GDP | Majority | Majority | Deficits | Deficits | | | | | | | | | | | | | | | | | | | | | | | | J. Carter-D | 1978 | 400 | 458.7 | -59.2 | 2,217.00 | 18 | 20.7 | -2.7 | D | D | -59.2 | | | | | | | | 1979 | 463.3 | 504 | -40.7 | 2,500.70 | 18.5 | 20.2 | -1.6 | D | D | -118.4 | | | | | | | | 1980 | 517.1 | 590.9 | -73.8 | 2,726.70 | 19 | 21.7 | -2.7 | D | D | -159.1 | | | | | | | | 1981 | 599.3 | 678.2 | -79 | 3,054.70 | 19.6 | 22.2 | -2.6 | D | D | -232.9 | | | | | | | R. Regan-R | 1982 | 617.8 | 745.7 | -128 | 3,227.60 | 19.1 | 23.1 | -4 | D | D | | -128 | | | | | | | 1983 | 600.6 | 808.4 | -207.8 | 3,440.70 | 17.5 | 23.5 | -6 | D | D | | -335.8 | | | | | | | 1984 | 666.5 | 851.9 | -185.4 | 3,840.20 | 17.4 | 22.2 | -4.8 | D | D | | -521.2 | | | | | | | 1985 | 734.1 | 946.4 | -212.3 | 4,141.50 | 17.7 | 22.9 | -5.1 | D | D | | -733.5 | | | | | | | 1986 | 769.2 | 990.4 | -221.2 | 4,412.40 | 17.4 | 22.4 | -5 | D | D | | -954.7 | | | | | | | 1987 | 854.4 | 1,004.10 | -149.7 | 4,647.10 | 18.4 | 21.6 | -3.2 | D | D | | -1104.4 | | | | | | | 1988 | 909.3 | 1,064.50 | -155.2 | 5,008.60 | 18.2 | 21.3 | -3.1 | D | D | | -1259.6 | | | | | | | 1989 | 991.2 | 1,143.80 | -152.6 | 5,400.50 | 18.4 | 21.2 | -2.8 | D | D | | -1412.2 | | | | | | G. HW Bush-R | 1990 | 1,032.10 | 1,253.10 | -221 | 5,735.40 | 18 | 21.8 | -3.9 | D | D | | -1633.2 | | | | | | | 1991 | 1,055.10 | 1,324.30 | -269.2 | 5,935.10 | 17.8 | 22.3 | -4.5 | D | R | | -1902.4 | | | | | | | 1992 | 1,091.30 | 1,381.60 | -290.3 | 6,239.90 | 17.5 | 22.1 | -4.7 | D | R | | -2192.7 | | | | | | | 1993 | 1,154.50 | 1,409.50 | -255.1 | 6,575.50 | 17.6 | 21.4 | -3.9 | D | R | | -2447.8 | | | | | | B. Clinton-D | 1994 | 1,258.70 | 1,461.90 | -203.2 | 6,961.30 | 18.1 | 21 | -2.9 | D | R | -436.1 | | | | | | | | 1995 | 1,351.90 | 1,515.90 | -164 | 7,325.80 | 18.5 | 20.7 | -2.2 | R | R | -600.1 | | | | | | | | 1996 | 1,453.20 | 1,560.60 | -107.4 | 7,694.10 | 18.9 | 20.3 | -1.4 | R | R | -707.5 | | | | | | | | 1997 | 1,579.40 | 1,601.30 | -21.9 | 8,182.40 | 19.3 | 19.6 | -0.3 | R | R | -729.4 | | | | | | | | 1998 | 1,722.00 | 1,652.70 | 69.3 | 8,627.90 | 20 | 19.2 | 0.8 | R | D | -660.1 | | | | | | | | 1999 | 1,827.60 | 1,702.00 | 125.6 | 9,125.30 | 20 | 18.7 | 1.4 | R | D | -534.5 | | | | | | | | 2000 | 2,025.50 | 1,789.20 | 236.2 | 9,709.80 | 20.9 | 18.4 | 2.4 | R | D | -298.3 | | | | | | | | 2001 | 1,991.40 | 1,863.20 | 128.2 | 10,057.90 | 19.8 | 18.5 | 1.3 | R | D | -170.1 | | | | | | | G. W. Bush-R | 2002 | 1,853.40 | 2,011.20 | -157.8 | 10,377.40 | 17.9 | 19.4 | -1.5 | R | R (VP) | | -2605.6 | | | | | | | 2003 | 1,782.50 | 2,160.10 | -377.6 | 10,808.60 | 16.5 | 20 | -3.5 | R | R (VP) | | -2983.2 | | | | | | | 2004 | 1,880.30 | 2,293.00 | -412.7 | 11,499.90 | 16.4 | 19.9 | -3.6 | R | R (VP) | | -3395.9 | | | | | | | 2005 | 2,153.90 | 2,472.20 | -318.3 | 12,237.90 | 17.6 | 20.2 | -2.6 | R | R (VP) | | -3714.2 | | | | | | | 2006 | 2,407.30 | 2,655.40 | -248.2 | 13,015.50 | 18.5 | 20.4 | -1.9 | R | R (VP) | | -3962.4 | | | | | | | 2007 | 2,568.20 | 2,730.20 | -162 | 13,667.50 | 18.8 | 20 | -1.2 | R | R (VP) | | -4124.4 | | | | | | | 2008 | 2,523.64 | 2,978.46 | -454.82 | 14,441.42 | 17.6 | 20.5 | -2.9 | D | D | | -4579.2 | | | | | | | 2009 | 2,757.32 | 3,998.20 | -1,240.88 | 14,301.52 | 15.1 | 28.0 | 12.9 | D | D | | -5820.1 | | | | | | B. Obama-D | 2010 | 2,381.20 | 3,591.20 | -1,210.00 | 14,729.35 | 15.8 | 24.4 | 8.5 | D | D | -1,380.1 | | | | | | | | | | | | | | | | | | | | | | | | | Total Deficits | | | | | | | | | | | $1,380.1 | $5,820.1 | | | | | | | | | | | | | | | | | | | | | | |
As shown in the chart, the Democratic Presidents created $1 trillion, three hundred eighty billion dollars
in deficits in the past 30+ years while the Republican Presidents created $5 trillion, eight hundred twenty billion dollars in deficits during the same
period!
THIS IS NOT A POLITICAL
STATEMENT…
IT IS FACT!
|
|
|
Deficits and taxes go hand in hand. They
are both very important to all of us but particularly important to our children and grandchildren!! That
is why you need to understand what is going on in this area.
As with so many other things, you have been getting some very distorted and incorrect
information on a daily basis. I will do everything possible to keep this section as interesting as I can;
I realize this subject can put people to sleep! No matter; this is very important to you!!
There are generally seven different types of taxes as follows:
1. Income Taxes: Taxes paid out by anyone who earns
an income, by any means, and are paid to the Federal and most State Governments. 2. Property Taxes: Taxes paid by anyone who owns property such as land, a home or commercial real estate and are paid to
the State or County Governments. Licensing fees on cars, recreational vehicles and watercraft are
property taxes as well. 3. Consumptive Taxes: Taxes on the sales of items that
are subjected to being used by either an individual or business. Fishing or hunting
licenses are also a tax. Toll road fees and travel fees also fit this category. 4. Payroll Taxes: These taxes are taken out by the businesses before income is distributed to the individual.
These are commonly called "FUDA" and "FICA" and businesses need to match a certain amount of these
payroll taxes. These taxes fund Social Security, Medicare, and other similar programs.The
first four types of taxes generally apply to most working people. The 5th type of tax may apply
to you if you are a small business person depending on how you choose to have your business taxed. 5. Corporate
Taxes: All business structures pay taxes on the income made in that particular business. 6.
Capital Gains Taxes: These taxes are paid on investments that have appreciated and usually these investments have been sold. Examples would be stocks, bonds,
and real estate. Unlike other income sources, most losses can be used to offset gains and thus reduce the
federal income tax. This is type of tax can be managed to a great degree by the taxpayer. The
tax payer decides when to sell an investment. The taxpayer can choose not to sell the investment
if the tax environment is unsatisfactory. They can simply wait until they find the environment more
satisfactory. 7. Inheritance or Estate Taxes: This is the only tax that can happen because of a death. Significant
amounts of money can be passed on with no tax consequence. Life insurance is often used to offset inheritance
taxes because it is generally not taxable.
Few people relish paying taxes, but everyone enjoys having good roads, schools, and services.
You, the working people, are generally not getting any special treatment because
your taxes are deducted from your pay. It is just that simple! You pay your taxes!
|
|
|
I wish I could say that about everyone but I cannot. It is just not true!
The Swiss bank, UBS, is under pressure by the IRS to disclose the accounts of
52,000 Americans believed to be avoiding taxes on billions of dollars of income. The bank has agreed to
disclose the accounts of 4,450. This is in conjunction with an amnesty program recently announced by the
IRS for delinquent tax payers. (Interesting how an amnesty program for tax evasion is available for the
very rich but the working people and the immigrants get no such amnesty).
Why are rich people and Republicans always crying about paying taxes?
Why are you
listening to them? Why are you agreeing with them? Why
are you following them?
Who the hell do these
people think they are? They will say it was their hard work that earned their fortune! Yeah right! MOST OF THEM WERE BORN ON THIRD BASE AND THINK THEY HIT A TRIPLE! (Their father or grandfather made them who they are!) Let me prevent being misunderstood. If you got a jump start on life and have worked very hard
ever since to maintain what you received, I salute you! If you have maintained some degree of sensitivity to the
less fortunate than you, I then salute you again! If however, you are an elitist ass, then you are the one who
thinks they hit a triple!
On this notion of an individual’s hard work creating their fortune.
Some very rich people disagree with this concept! Let me cite two of these people and what
they said.
(These
comments were made in rejecting George W. Bush’s attempt to repeal the Estate Tax in 2006. Source: Beacon.)
NOTE; only the richest 2% of U.S. families currently pay any estate tax at all.
Mr. William H. Gates (father of Bill Gates) is one of the people.
Mr. Chuck Collins (cofounder of “United for a Fair Economy and Responsible Wealth”), and the great-grandson
of meat packer Oscar Mayer, is the other person. Incidentally, he gave away his substantial inheritance
at the age of twenty-six
Gates and Collins argue that individual wealth is a product not only of hard work
and smart choices but of the society that provides the fertile soil for success. They don’t subscribe to the
“Great Man” theory of wealth creation but contend that society’s investments, such as economic development,
education, health care, and property rights protection, all contribute to any individual’s good fortune. We could be facing the future that Teddy Roosevelt feared—where
huge fortunes amassed and untaxed would evolve into a dangerous and permanent aristocracy. What about all those small families that would lose the farm? Gates and Collins expose the fallacy of this
argument, pointing out that this is largely a myth and that the very same lobbies and politicians who are crying “cows”
have opposed other legislation that would actually have helped small farmers. Weaving in personal narratives, history,
and plenty of solid economic sense, Gates and Collins make a sound and compelling case for tax reform, not repeal!
Regarding their quote of what Teddy Roosevelt feared, I think we are almost at
the “permanent aristocracy” stage!
Have you ever thought about how much of our taxpayer money has been spent on basic science and medical research?
Money provided to universities as grants to support this research.
What about
the government research facilities and all of their discoveries?
What about
the internet?
What about
the Defense Departments investment in research covering all sorts of things? It is really quite endless.
Yes, in theory, we all have the opportunity to capitalize on these expenditures
and create our own empire. That is theory!
You see
the act of creating a new business or enterprise is not all that hard if you have the money and a safe place to fall!
It is quite a different story if you risk everything you have and
could find you and your family living in your car, if you still had one!
Remember
what I said about being born on third base and thinking you hit a triple!! The fact
of the matter is this.
We need to pay:
. for wars if we intend to wage them!
. for the defense of the the world if that is what we want to do! . to help our less fortunate citizens! . to keep our society civil! . to take care of our elders! . to have insurance for everyone! .
to keep our infrastructure safe!
If you are fortunate enough to make millions in our society, then you should be
willing to help pay your share!
George Bush and the Republicans cut the Capital Gains
Tax to 15%. That is ridiculous!
If you want to cut
Capital Gains Tax on something; cut it for the pension funds of the working people!
For the rest of you investors and speculators, a Capital Gains tax of 30% or even
40% would help you pay your share to support this society! If that is too much for all gains, then do it
for everything over $500,000.00.
I have included two tables below;
. the first is the income
and taxes for the years 2001 – 2003 for
the various income groups; . the second
is the same but covers the period 2004 - 2006.
The tables also show (at the bottom of each) the total capital gains
income realized for the period and the capital gains tax paid on that income.
|
|
|
Table
1 – Income & Taxes Paid By All Groups 2001 – 2003
2001-2003 GROSS INCOME w/Capital Gains
| | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted | Alloc
Capital | % OF | Total Inc. | | Number Of | Avg
| | Income Range | Gr Income | Gains Income | Total | w/Cap Gains | | Returns | Income | | 1 to $25,000 | 1,856,367,373 | 0 | 0 | 1,856,367,373 | | 178,367,681 | $10,408 | | $25,001
to $100K | 9,157,741,064 | 0 | 0 | 9,157,741,064 | | 179,099,401 | $51,132 | | $100K to $200K | 3,394,187,538 | 0 | 0 | 3,394,187,538 | | 25,770,445 | $131,709 | | $200K to $500K | 1,703,716,677 | 400,652,815 | 42.5610% | 2,104,369,492 | | 5,925,854 | $355,117 | | $500K
to $1.0M | 709,119,527 | 166,759,379 | 17.7147% | 875,878,906 | | 1,048,441 | $835,411 | | $1.0M to $10.0M | 1,126,629,589 | 264,942,712 | 28.1446% | 1,391,572,301 | | 525,218 | $2,649,514 | | $10/0M or more | 463,536,499 | 109,007,094 | 11.5797% | 572,543,593 | | 18,271 | $31,336,194 | | Total
| 4,003,002,292 | | *********** | | | | | | | | | | | | | | | 2001-2003 TAXES PAID | | | | | | | | | | | | | | | | Total Taxes | Allocated | % OF | Total Tax. | Effective | Number Of | Avg
Tax | | Income Range | Paid | Cap Gains Tax | Total | w/Cap Gains | Tax Rate | Returns | Paid | | 1 to $25,000 | 61,579,652 | 0 | 0 | 61,579,652 | 3.3172% | 178,367,681 | $345 | | $25,001
to $100K | 843,767,792 | 0 | 0 | 843,767,792 | 9.2137% | 179,099,401 | $4,711 | | $100K to $200K | 523,746,961 | 0 | 0 | 523,746,961 | 15.4307% | 25,770,445 | $20,324 | | $200K to $500K | 380,066,756 | 62,897,268 | 37.86% | 442,964,024 | 21.0497% | 5,925,854 | $74,751 | | $500K
to $1.0M | 191,332,616 | 31,663,645 | 19.06% | 222,996,261 | 25.4597% | 1,048,441 | $212,693 | | $1.0M to $10.0M | 317,980,641 | 52,622,634 | 31.68% | 370,603,275 | 26.6320% | 525,218 | $705,618 | | $10/0M or more | 114,486,960 | 18,946,453 | 11.40% | 133,433,413 | 23.3054% | 18,271 | $7,303,016 | | Total
| 1,003,866,973 | | | | | | | | | | | | | | | | 2001-2003 CAPITAL GAINS | | | Gains Realized | 941,362,000 | | | Taxes Paid | 166,130,000 | | | | | | | | | | | | |
Capital Gains Effective Tax Rate: 17.64%* All amounts are in thousands except “Avg. Income”
Table 2– Income & Taxes Paid By All Groups 2004 – 2006
| | 2004-2006 GROSS INCOME w/Capital Gains | | | | | | | | | | | | | | | | | | | | | | | | Adjusted | Alloc
Capital | % OF | Total Inc. | | Number Of | Avg
| | Income Range | Gr Income | Gains Income | Total | w/Cap Gains | | Returns | Income | | 1 to $25,000 | 1,777,952,320 | 0 | 0 | 1,777,952,320 | | 174,858,909 | $10,168 | | $25,001
to $100K | 9,729,724,735 | 0 | 0 | 9,729,724,735 | | 186,847,761 | $52,073 | | $100K to $200K | 4,325,222,902 | 0 | 0 | 4,325,222,902 | | 32,634,359 | $132,536 | | $200K to $500K | 2,360,827,986 | 732,097,732 | 36.8347% | 3,092,925,718 | | 8,207,450 | $376,844 | | $500K
to $1.0M | 1,048,199,646 | 325,048,919 | 16.3545% | 1,373,248,565 | | 1,546,957 | $887,710 | | $1.0M to $10.0M | 1,914,533,289 | 593,700,806 | 29.8714% | 2,508,234,095 | | 858,629 | $2,921,208 | | $10/0M or more | 1,085,682,863 | 336,672,543 | 16.9393% | 1,422,355,406 | | 39,409 | $36,092,147 | | Total
| 6,409,243,784 | | *********** | | | | | | | | | | | | | | | 2004-2006 TAXES PAID | | | | | | | | | | | | | | | | Total
Taxes | Allocated | % OF | Total Tax. | Effective | Number
Of | Avg Tax | | Income Range | Paid | Cap Gains Tax | Total | w/Cap Gains | Tax Rate | Returns | Paid | | 1 to $25,000 | 47,946,094 | 0 | 0 | 47,946,094 | 2.6967% | 174,858,909 | $274 | | $25,001
to $100K | 755,657,949 | 0 | 0 | 755,657,949 | 7.7665% | 186,847,761 | $4,044 | | $100K to $200K | 574,054,992 | 0 | 0 | 574,054,992 | 13.2723% | 32,634,359 | $17,591 | | $200K to $500K | 475,663,642 | 98,689,202 | 33.6616% | 574,352,844 | 18.5699% | 8,207,450 | $69,979 | | $500K
to $1.0M | 250,253,316 | 51,921,774 | 17.7099% | 302,175,090 | 22.0044% | 1,546,957 | $195,335 | | $1.0M to $10.0M | 463,671,409 | 96,201,091 | 32.8130% | 559,872,500 | 22.3214% | 858,629 | $652,054 | | $10/0M or more | 223,484,841 | 46,367,934 | 15.8155% | 269,852,775 | 18.9722% | 39,409 | $6,847,491 | | Total
| 1,413,073,208 | | | | | | | | | | | | | | | | 2004 - 2006 CAPITAL GAINS | | | Gains Realized | 1,987,520,000 | | | Taxes
Paid | 293,180,000 | | | | | | | | | | | | |
Capital
Gains Effective Tax Rate: 14.75%*
All amounts are in thousands except “Avg. Income”
Source: www.presidency.ucsb.edu/data/budget.php
Tax Foundation, Treasury Department
http://www.irs.gov/individuals
I have taken the liberty to distribute
the total Capital Gains Income realized, in each year, based on the percent of total income each income range received.
I did not allocate Capital Gains income or taxes to the income groups from $1 to $200,000. Example:
In 2001-2003, the $200K to $500K group received a total of $1,703,716,677 in income which is 42.56% of the total income for
that year of $4,003,002,292. I then took 42.56% of the $941,362,000 received in Capital Gains which is
$400,652,815 and added that amount to that group’s income giving that group and income of $2,104,369,492. It is recognized this is not a statistically valid method to spread the Capital Gains Income for many reasons:
1. Capital Gains
income has a major bias toward the higher earnings groups because they own the capital instruments so I only used the $200K
and higher groups.
2. Capital Gains
income has no real relationship
to ordinary income levels. However, I felt it was necessary to allocate some amount of Capital Gains income
to each group because it must be included to even begin to determine any kind of effective tax rate each is paying.
Since Capital Gains are taxed at 15%, it decreased the effective tax rate being paid by the higher income levels.
Either way, the effective tax rate of higher income levels is too low as it is.
|
|
|
Lets take a look at the Capital Gains for 2001- 2003 and 2004 – 2006. It is interesting
to see the impact of Capital Gains and in particular, how the Bush tax cuts impacted the taxes various people pay.
2001 - 2003 Capital Gains Realized: $941,362,000,000 2001 - 2003 Capital Gains
Tax Paid: $166,130,000,000
2004 - 2006 Capital
Gains Realized: $1,987,520,000,000 2004 - 2006 Capital Taxes Paid:
$ 293,180,000,000
Note the significant difference in the gains realized in the two periods.
$941,362,000,000 in 2001-2003 and $1,987,520,000,000 in 2004-2006.
Now look at the Capital Gains Taxes paid in the same two periods. This is a clear example of how the wealthy
in our society can control the taxes they pay and when. Remember, capital gains only occur when an investment
is sold. In this case, the Bush Capital Gains tax cut went into effect in 2004. I did not have to
tell you that; you could see it by simply looking at the numbers!
Table 3 contains a more detailed
look at these Tax Cuts.
This table reflects the impact
of the Bush tax cuts on individuals in the various income groups.
Table 3 – Who benefited by the Bush tax cuts?
| | Impact of Bush 2001 - 2003 Tax Cuts On Various Income Groups | | |
1 | 2 |
3
4 5
6 | 7 | | | | All
tax cuts | | Total | % | % | | | % of | Except
Cap Gains | Cap Gains | Income Tax | Total Income | Share of | | Adj. Gross Income | Filers | & Dividends | & Dividends | Cut | Tax Cut | taxcuts
| | | | | | | | | | Less than $50K | 70.6% | $425 | $10 | $435 | 2% | 5.3% | | $50-$100K | 20.6% | $1,588 | $68 | $1,656 | 4% | 10.4% | | $100-$200K | 6.8% | $3,357 | $268 | $3,625 | 8% | 13.5% | | $200-$500K | 1.5% | $5,599 | $1,489 | $7,088 | 27% | 16.9% | | $500K-$1 million | 0.3% | $16,988 | $5,491 | $22,479 | 32% | 11.1% | | $1-$10 million | 0.1% | $59,216 | $25,450 | $84,666 | 43% | 25.4% | | $10 million plus | 0.03% | $521,905 | $497,463 | $1,019,369 | 95% | 17.3% | | | | | | | | | | | | | | | | |
Source: Internal Revenue Service
and ITEP Tax Model, April 2006.
Note the significant difference in the tax cuts realized
between the income groups; it is obvious who benefited from these tax cuts. The tax payers in the
less than $50,000.00 a year income range represent 70% of the tax payers and they managed to get a 2% benefit from this
tax cut. You can see, as the income increases, so does the benefit. That
is exactly what has been happening everywhere from income to wealth!
In additon to everything you have seen thus far, I will give you two more examples to help you understand what is
actually going on. Consider this:
The deficits we have and the taxes we pay are scary because too many businesses and wealthy people
to not pay their share!
Here are just a couple of recent situations we know; imagine
the ones we don’t know!
BUSINESS RIP OFF.
An act was passed in 2003
(Bush of course) called the Homeland Investment Act. This act would allow American Corporations to repatriate
(bring) profits back from overseas locations to the United States and only have to pay a tax rate of 5.25% for a limited period
of time rather than the normal 35% rate. The law specifically said the money could not be used to raise
dividends or to repurchase shares. It was supposed to spur investment in America, building plants, increasing
research & development, and creating jobs.
The Bureau of
Economic Analysis researchers were able to calculate that $300 billion in overseas profit was repatriated by American companies
in 2005. That amount was five times the normal amount of repatriations.
The most detailed
analysis of what actually happened has estimated what happened to the $300 billion companies brought back from foreign subsidiaries.
About 92 percent of it went to shareholders, mostly in the form of increased share buybacks and the rest through increased
dividends. Only 8% went where it was supposed to go; to create jobs, etc.
To summarize all
this: The companies paid $15.7 billion in taxes at the 5.25% rate
on the $300 billion brought back. Without the special act, they would have had to pay $105 billion in tax.
Based on the law, the $15.7 billion in tax collected at the
special 5.25% rate, was supposed to be used to create jobs, etc. However, given the fact that 8% of the
$300 billion was used properly and 92% of the $300 billion was not used properly the companies pulled a big rip off!
The following is a basic summary of what happened vs. what should have happened!
Companies brought
back $300 billion.Companies paid
$15.7 billion in taxes on the $300 billion at the special 5.25% rate.Companies used $24 billion properly and $276 improperly! Companies should have paid $1.2 billion in tax on the $24 billion
used properly and $24 billion in tax on $276 billion not used properly or a total of $25.2 billion in tax.
Instead, they ripped us taxpayers off by $9.5 billion!!
I still have not found out who went to jail! To
read the entire story, following web address can be used.
INDIVIDUAL RIP OFF.
The U.S. Justice Department of the Obama Administration, sued the Swiss Bank USB
AG as part of an effort to sue them for not disclosing the bank accounts of approximately 52,000 Americans suspected of evading
U.S. Income Taxes.
To settle this
law suit, USB agreed to pay $780 million in penalties and disclose the accounts of 4,450 Americans suspected of hiding assets.
In conjunction
with this effort, the IRS came up with a leniency program whereby those who came forward voluntarily would not have to go
to jail but they would have to pay back taxes and interest for a minimum of six years plus penalties of 20 to 25 percent on
income either undisclosed or understated.
Although sizeable, the payments represent
a discount on the 50% penalties that the IRS otherwise imposes for non-disclosure. (Interesting how these
wealthy people get some amnesty while wage earners and immigrants get no such amnesty).
Again, to read some of the details, you can use the following web addresses:
Let me close this section with
the following comment:
You can turn your TV on right now and you will hear Republicans howling about
the deficit they created and screaming for more tax cuts which will simply benefit them and all their rich friends plus continue
to make their deficit even worse!!
I do not want to even get into the Bank and Wall Street bail outs. They
made it necessary because of their greed and pandering to all the special interests!!
Don’t misunderstand me here;
both parties are guilty of pandering to special interests.
We need to dump this
“party system” and implement “term limits” if we ever expect to get a government that works.
Again, I do not know what will happen to Health Care Reform in the end.
I do know, I watched the worst example of government in action as I watched the party of “NO” (in particular
the Senate) do exactly that, say “NO”! The last count I heard was over 100 bills are backed up in the Senate!
It is obvious to me, our system is free and great but it may have considerable
problems trying to compete in the new world we have coming at us!
We have the BRIC nations (Brazil, Russia, India, and China) advancing rapidly; they, however, do not
have the same paralyzed governments we have. When they want to get something done, they do it!
If we continue to sit and argue
and get nothing done, they will bury us! Not militarily but economically! Is it our intent to wait until that
day and then try to take it away from them! Good luck with that!
CLICK HERE TO RETURN TO THE HOME PAGE
CLICK HERE TO GO TO THE NEXT PAGE
|
|
|
|