A progressive’s pot of gold, take # 3.

“Thick” is the name my mom called me when I had the wrong take on something. It still does haunt me. There is no such thing as corporate taxes, corporate subsidies, or corporate welfare; there are only consumer taxes and resulting increased or decreased prices. This regressive government “tax” practice hurts the working poor the most.  Government manipulation of business tax code is one the greatest tools to buy votes and pick and choose winners we unequal Americans face. If we raise taxes to say 50% on the evil Caterpillar Corporation they are forced to raise their prices to meet fiduciary and other responsibilities to their stock holders ( a stock holder like say the teamster pension fund). All is good until Cat sales drop off because their prices are no longer competitive with Komatsu which enjoys a lower tax rate. How do so many Americans not understand business taxes? Easy they equate them to their own taxes when in reality they are two completely different animals. This ignorance is easily taken advantage of by unscrupulous politicians with envy and bigotry used as assistants to drive home the manipulation. If you are dependent on tax payer money that does not give you an excuse to be mislead; you don’t get a pass on ignorance just because you don’t care about private economic activity other than eating its fruit.

Due to human nature and congressional manipulation of the tax code the effective tax rate on the very top evil rich corporations or evil individuals is about 19%. Our tax rates for the evil rich have been as high as 90% and now are at 35% while the effective rate has been fairly stable at 19%. Those pesky humans tend to change their behavior when they feel they are unfairly taxed. However the low end earners within the highest rate like small and medium business find higher taxes stifles job creation as many of these businesses have limited options and pay a higher effective rate. They also struggle with pricing due to far more competition. In order to transfer higher consumer payments to the government many businesses have to cut labor which is their largest expense to maintain needed profit margins (the owner of the business has to pay to send his or her kids to college, to think they don’t use government largess, da nerve).

There is a rather clear example of progressive politicians believing their own propaganda. It may help those who still struggle with their need to remain “thick”. Omnibus Budget Reconciliation Act of 1990 (a Rep. Patrick Kennedy soak the rich scheme).In 1990 there were no luxury excise taxes, all of them having been repealed. Patrick felt the rich who bought aircraft, jewelry and furs over certain prices and yachts costing more than $100,000 should be punished for their ability to buy high end consumer products. In 1990 it was projected that the 1991 revenue yield from new luxury taxes would be $31 million. It was $16.6 million. According to a study done for the Joint Economic Committee, the tax destroyed 330 jobs in jewelry manufacturing, 1,470 in the aircraft industry and 7,600 in the boating industry. The job losses cost the government a total of $24.2 million in unemployment benefits and lost income tax revenues. So the net effect of the taxes was a loss of $7.6 million in fiscal 1991. Needless to say congressmen Kennedy is no longer “thick” why should you be? It is one thing for politicians to use stupidity for their benefit it is quite another thing if politicians believe their own malicious class warfare propaganda. To make up for his transgression Patrick introduced a bill to give the evil rich a 20% tax break if they purchased a yacht. Man you got to love a reformed progressive. I wonder if he had to do a twelve step program.

Good news from a recent IMF report.

If you look solely at the gross domestic output of the U.S. and China using current exchange rates, you wouldn't see this coming. That's because China works hard to undervalue its currency.
The IMF analyzed something different: "Purchasing power parity." Or, the amount people earn and spend in their economies.
Using this yardstick, China's economy is set to zoom from $11.2 trillion this year to $19 trillion in 2016 surpassing the U.S. The U.S. economy will rise as well in that period, but only from $15.2 trillion to $18.8 trillion. The U.S. portion of the world economy drops to 17.7%, which is the lowest in modern times.

Good news for the cause as this recent IMF report also shows Free enterprise, Self reliance and Merit are on the run in the United States to the delight of many.

The IMF report comes a few days after Standard & Poor's sounded a warning shot over America's debt status. The U.S. federal debt has hit World War II levels, and Medicare, Medicaid and other entitlement liabilities not faced during the WW2 correction are five times the annual GDP.  Our five year plan looks for this to be at 6 to 7 times GDP by 2020 to meet the leader’s budgetary goals.

Chinese free enterprise moves of late are working, much to the regret of the faithful. A stiff campaign of propaganda slamming the successful here and abroad should quiet any that might transgress. Federal efforts to socialize the Oil Industry are on schedule and to plan. Our leader has taken the lead on deflecting FED inflationary policy and is searching far and wide for a scapegoat. Rumors of several Oil retailers making profits from their work and effort should make his task an easy one. Keep your chins up, we are winning.
Thanks K. P.

Are unemployment benefits now a Government dependency trap?

Unemployment benefits as we now know have become a political football. Just what it is and how it serves the working class is maybe a little lost. Unemployment is a tax payer funded program of temporary relief for laid off workers or workers who have lost their jobs permanently.  By definition employers help fund unemployment but as is the case with all costs of doing business these cost are passed on to the consumer and can be equated as another regressive government tax. It can be safely said we the people pay for the unemployment checks. Currently we are in debt and the new Government extended unemployment checks are on the backs of future generations. Unemployed workers under current law will receive money for 99 weeks about 2 years which will be extended soon. As most know unemployment was to have a 26 week limit.

 The Socialist country of Denmark once paid unemployment for 5 years but found most did not seek real work until the benefits ended so the socialists reduced the benefit to 4 years and last spring reduced it further to 2 years. Our Nation seems to be heading in the other direction.

There has been and still is some abuse of unemployment benefits in our country. Some seasonal and most construction workers use unemployment as an augmentation employment income, tax payer paid vacation if you will. They know and understand unemployment is part of their work year and unemployment benefits rightly or wrongly have become part of their life style. Many young two income families that have a parent laid off find they are better off with unemployment checks as the daycare and other costs are no longer a burden. A parent at home is a hard thing to give up. A side bar; is the high burden of regressive sales tax, regressive fees, regressive excise taxes, regressive property taxes, regressive consumption taxes, and regressive FICA taxes, forcing both parents to work outside the home?

Some unemployed suffer from depression and grief from their job loss they must seek help. If an area lacks jobs, relocating must be an option. There are also job training programs available. People tend to be healthier more emotionally stable and live longer if they are productive. Sloth is an all too human trap some can find themselves in. My experience has shown me unlike most parents your Government will enable sloth for political purposes. We probably need a debate in this country as to whether unemployment benefits should be a permanent welfare entitlement or a 6 month limited helping hand. There was a time in Mining communities when workers moved on to other areas when the Mine petered out and job opportunities ended (Ghost Towns). Now unemployment, SSI, and welfare keep working age people in place with little or no job prospects, this also holds somewhat true for welfare ghettos in large cities. This may not be a good thing.

Another Social Conundrum?

Some seem to be confused about business taxation. Deflection and deception by some politicians adds to the confusion. Business taxes are regressive government taxes on consumers. Business taxes as a cost of doing business are an expense no different than a utility bill, wages, plant or equipment. Any taxes, like utility bills, are passed on to the consumer and the poor are punished the most by this regressive government taxation practice. It is sold by saying “fat cat businesses” must pay their share and many (including some poor) buy into the propaganda.

When a business pays its employees, the heavy taxes of almost 50% each employee pays must be considered by the employer. Pay to ensure good employee moral. An example would be $12 an hour (governments take about $6 per hour) leaving an employee with $6 an hour. This is a hard thing for business to deal with as the regressive personal taxes paid by the working poor have made life unbearable for many workers. It is not in any businesses interests to have cash strapped employees with personal problems. All regressive taxes (sales, fees, property, consumer, excise, FICA, etc.) must be means tested. As business taxes are inherently regressive they must go. Do not fear progressives those humans who profit from business will still pay.

Some think a tax break for business is welfare. When a local government gives a $10,000 property tax break to entice business activity, it can be looked at as a $10,000 loss by public workers or others vested in the government. Some then attack the tax break as they can only see “their” largess being eroded. This combined with buying into “the evil business propaganda” makes the rancor understandable but bigoted. The reality is if a business takes advantage of the property tax break and the business employs 50 people the tax increase for local coffers would be about $100,000 whether the employees rent or own a home. The $100,000 coming from business income paid to workers, the business is still paying property taxes via employees. Some still can’t see the obvious positive outcome (more jobs and taxes) of business incentive let alone private worker incentive; I guess some have never needed to. Politicians know business taxes are regressive and stifle employment but to hold the faithful they still attack the engine of our American success and many buy into it. The true reason for Business taxes is to hide the real cost of government paid by the worker. The politicians who create such stealth taxes are not necessarily good people, but hey they are politicians who know how to buy votes.

Businesses are not people!!! They do not nor have they ever paid a dime in taxes!!! They are entities that simply employ people who do pay their personal taxes and they collect regressive taxes on behalf of the governments. If all business taxes were the same everywhere in our nation and throughout the world the amount of business taxation would be irrelevant. However their regressive nature would still hurt the poor the most. Business success depends on a fair and even playing field; we all have an interest in this. The rancor and bigotry against the group called “Business” is wrong, as wrong as it would be against any group. All groups have bad apples; we need to get off the bigotry stuff so we can think. I do concede bigotry and propaganda against business “works” in making political hay and getting votes, I just wish some could see past it.

Pity the Fool? Excuse me Mr. Ryan.

A brave Paul Ryan the soon to be pariah from the (progressive) State of Wisconsin has timidly stepped to the plate to strike back at the mountain of Federal Debt. Having heard of the token 4 trillion dollars over ten years cutbacks on Federal outlays, I find Ryan’s proposals way too little way too late. For his actions Ryan will be bloodied by the political hacks from every largess dependent group. All the same hacks that say sacrifices must be made “but” just not by them. If the “third graders” in elementary school were aware of the debt their parents are dumping on them they would write a new bill that would cut 3 or 4 times the amount proposed by Ryan. Then the third graders would tell their parents and grandparents “you have to pay back the allowances you have so greedily stolen from future generations”. Most third graders would also say because Government Party members can vote themselves a check, it doesn’t make it right and this practice must end.

Mr. Ryan will be accused of wanting to starve children, old folks, and middle class leaches. He will be accused of taking crutches from the disabled. He will get the full attack from bigots and class warfare hacks. For what, a token effort to reduce the volume of slop in the trough? He will only succeed at best in angering the entitled dependent slaves to socialist programs and those who profit from enabling the status quo. These same politically dependent slaves who will never do anything to save my grandchildren’s future. As President Obama’s war chest swells to over 1 Billion dollars bolstered by those seeking to buy power for maintaining the status quo, I say good luck with your fool moves Mr. Ryan. I feel we have become a nation were most citizens want a “Government Party” and they enjoy their entitled and dependent status paid for on the backs of their children. Many will say, “how dare you Mr. Ryan mess with this golden egg, stealing from powerless children has worked, is working and the kids protest not”.

I give Mr. Ryan kudos for volunteering to be the victim of the American Dependency Industry; however I will work to have him removed from office for his half hearted uncommitted attempt to save the children. For me committed leaders to save my grandkids future have yet to show up. Half measures will only serve to slow down the slitting of our nations throat and the theft of my grandkid’s future. I guess I would rather have it over quickly by doing nothing like many lefty hacks will propose. At least then the kids can pick up the pieces and start over. Mr. Ryan like many other progressives misjudges the American people seeking the deliverance of our nation from the stealing of children’s money to grease adults for votes through unsustainable socialism. Many wanted Mr. Ryan to hit a home run, his bunt will not do.

Eating our own

The human action of eating ones own can run the gambit of actually eating ones own to nibbling at the fringe of their future. Over the years I have strayed into the fanatical regions of both ends of the political spectrum. The spectrum being from Government control of ones life to Libertarian Freedom and individual responsibility. My dance of life has never helped me find peace as it has led me instead to far more questions than answers. Often I find the range of human politics, beliefs, and culture completely bewildering. As I try to categorize and gain a foothold of understanding a new or different wind of complexity confronts me. I have found the vastness of human behavior contains the greatest mysteries and questions of all. The grappling with physics to me is chump change in comparison.

 Although I do not consider myself very religious I do see and understand the good of being a religious person. I do try very hard to practice the Golden Rule but my endeavor to do this consumes all the religious practice I can handle and I still fail at even this simple idea. I also see the perversion of religion by people caught in the traps of bigotry, group think, dogma, hate and envy and all the horror dispensed. However this is true of any group be it Social Democrats, KKK, PETA, Right wing nuts, Left wing nuts, Middle stove bolts, Political Parties of all persuasions, Religious groups, Racist groups and many other groups. Why do we create so many vastly different sub groups when we are basically the same? We all have fears; does the choice of which fear we fear the most force a group selection and the absence of a particular fear another? Is any association based on fear a good thing or a necessary thing?  It does seem to me there is a wacko side of human nature that can not be put onto any particular group but can roar its ugly head from any idea or belief. One must conclude the negative side of human nature is not removed from the human condition by association. These very associations can add fuel to the fire of human frailty as personal, not necessarily virtuous; beliefs are enhanced by group think. Is our choice to participate in groups the problem? Many Americans participated in and supported mob lynching but very few would choose as an individual to personally lynch someone. At the time most members of the Lynching Group also had associations with a Religious Group, main stream Political Group and maybe a “radical” KKK group.

  As individuals we may respect another’s freedom but as a group is any respect over ridden by group dynamics? Does the forming of groups by necessity cause the destruction of freedom as each seek to one-up the others? Some feel there was a time when the practices of Native Americans were respectful of nature and had a positive group dynamic. I have seen the mass grave where envious Minnesota Sioux are buried when they tried to raid the Mole Lake Chippewa wild rice cash; again I find little comfort in association. Is our need to be part of group an ancient tribal urge, (us/them, win/loose, eat/or be eaten), we cannot control? Do our politicians mine groups by taking advantage of group fear, bigotry, stupidity, envy and other lesser human group dynamics to achieve power? Why are we engaged in stealing our children’s and grandchildren’s money, destroying their freedom and limiting their future opportunity? Is our insecurity that strong? Is this a modern perversion of tribal or group dynamics or the same old story? Have we become so dependent on our Government Masters that we now freely eat our own?

I am by default a part of the Association of Humans the biggest group, the Human Freedom Group and a Religious Group. I still search to understand why the biggest group does not choose freedom even when it is given to them via the blood and sacrifice of others. History shows periods of Freedom are extremely short and frail, Greece, Rome, some Tribes, America? Is it Human nature that condemns us to a world where Liberty is the impossible? Why do we seek with such vigor to trade Liberty for security from a Government? Is our need for a Master so strong we are helpless without one? Do the Masters need a Master? Will we riot when the Masters make necessary changes (cuts to Socialist programs) or will our Masters fearing riots fail us altogether?  Once most Americans supported and protected Freedom now it seems our group divisions and subsequent rancor has set up Freedom first as a gradual victim and now as the fall guy. Are the ups and downs of Freedom with all its vast Human choices, mistakes and beliefs so scary we must control it? Why do so many polish the trailer hitch on their coffin, selfishness, remnants of an ancient afterlife religion?  I know there is an answer to eating ones own; I know it is probably simple and obvious but it eludes me. Is my need to understand a result of Liberty or the residue of its demise? Does not being a rank and file member of a political sub group cause me to have questions and confusion? Do we seek sub groups so we won’t have questions or to answer questions?

 Has the choice to end the life of our suffering Lady Liberty already been decided by our genes? Ahhh genes the ultimate pickle can’t live without them and can’t have Freedom with them. Could this be the answer? No, what about the Masters? In the end aren’t we all capable of being Masters? Does our fear of death or ignoring death trump all and blind us to our actions? Is it time for us to think outside our little group boxes or do our natural human fears trap our thoughts there? What we are doing to future generations is very wrong, there must be an answer as to why and then we must fix it. My Bolshevik Grandfather would say “meidan taytyy tehda se lapsille” (we must do it for the children).