Let’s Talk Taxes
After listening to the State of the Union speech, it is obvious that the President is relying on class warfare and hoping that the electorate does not fully understand taxes. First of all, no one understands the tax code to include those people who write the laws and those people in the Internal Revenue Service who are expected to enforce the rules. The administration and the left continue to preach that the rich do not pay their fair share of taxes. Warren Buffet and other rich people are quoted as saying that they do not pay enough taxes. Why then has Warren Buffet continued to fight the IRS about a billion dollars in back taxes? If he thinks that he does not pay enough, then pay the billion dollars. I’m sure that Warren Buffett does not prepare his own taxes but rather has a platoon of accountants to search for every possible opportunity to pay the least amount that is legal. If he was serious he could fill out a form and not claim any deductions. Former President Clinton is another one who states that he does not pay enough taxes. Then why does he create various funds to protect his holdings from taxes?
Federal income taxes are the major source of revenue for the government. The social security withholding taxes pay for the social security system and until now there has been an excess that was used to reduce the federal deficit. Capital gains taxes are currently at 15% and are charged on the sale of property or investments. That is the major income for both Buffett and Romney. These are the major taxes that fund the government.
Each time that tax rates are reduced, the money increases to the federal coffers. When capital gains are reduced there is incentive to sell assets to make a profit and reinvest in other enterprises. President Clinton cut the capital gains taxes and the money poured into the federal coffers. That is why he now claims credit for the balanced budget. When income taxes are reduced, the economy grows because there is more incentive to gamble since the return is higher. Companies grow and new buildings and companies are created. It is always so no matter where it is tried. When President Bush reduced the taxes, revenues to the federal government grew by 44% four years later and the deficit was reduced by 57%. When President Reagan reduced taxes, the economy doubled.
Not that long ago, a study was taken in this country about the maximum tax rate that should be applied. The results shocked those taking the study. The rate was 25% for all inclusive taxes. Rich, poor, male, female, and all races came up with the same figure. When taxes are raised, investors move their money and investments other places where they can make a decent profit. If anyone had a choice of earning more money in one area as opposed to another one and everything else was balanced, one would probably choose more money. Businesses do the same. Several states have added extra taxes on millionaires and the millionaires have moved. They not only did not get more revenue, they got less. Companies do the same. We do not have a revenue problem, we have a spending problem and those footing the bill are tired of paying it.
Colonel Don Myers
USMC (ret.)
OBAMA THE ILLEGAL, MUSLIM, LIAR, HAS ALREADY READY VIOLATING THE FIRST ADMENDMENT AND THE BILL OF RIGHTS. WHEN IT COMES WHICH ALL OF THE ATHEIST CLAIM. HE KNOW WANTS CATHOLIC HOSPITALS AND OTHER CATHOLIC INFIRMARIES TO GIVE OUT BIRTH CONTROL, AND ABORTATIONS. HE IS PLAYING WITH FIRE. IF THIS ILLEGAL GOES BACK IN HISTORY, MOST WARS WERE STATED OVER RELIGION. THIS ILLEGAL, MUSLIM, LIAR AND A LOT OF CATHOLICS VOTED FOR THIS ILLEGAL. THEY BETTER WAKE UP, REMEMBER THE OLD CLIQUE IS WHEN THE CAME FOR THE MY GUNS I SAID NOTHING, WHEN THEY CAME FOR THE CATHOLICS I SAID NOTHING AND WHEN THEY CAME FOR THE JEWS IT WAS TO LATE. WAKE UP AMERICA YOU ARE SELLING YOUR FREEDOMS AND YOUR COUNTRY AND YOUR CHILDRENS AND GRAND CHILDREN DOWN THE DRAIN TO A BUNCH OF COMMUNISTIC SOCIALISTIC DEMOCRATS AND SOME REPUBLICANS ALSO WHO HIDE BEHIND THEIR PARTY.
LET THE ELECTORATE WHO INTRUSTED THIS GREAT COUNTRY TO AN ILLEGAL, MUSLIM, LIAR. READ THE HEALTH CARE BILL AND THEY WILL SEE HOW THE DEMOCRATS HID PROVISIONS THAT WILL NOT ONLY RAISE THEIR TAXES BUT WHEN IT COMES TO SELLING THEIR HOMES. IN 2012 IF YOU SELL YOUR HOME YOU WILL BE CHARGED A 2 % TAX. HEALTH CARE FOR ILLEGALS, IF YOUR LOVE ONE GETS CANCER A BOARD OF DOCTORS DETERMINE IF TREATMENT IS NECESSARY. THE MIDDLE CLASS WILL BE GETTING SCREWED AND THE PEOPLE WHO PELOSI SAID YOU CAN BECOME WHAT EVER YOU WANT. PS ALL OF YOU SENIORS BETTER WAKE UP TO THE CUTS IN MEDICARE AND YOU WILL BE GOING TO HOSPICE IF YOU BECOME ILL. YOU CAN THANK ALL OF YOUR LYING SOCIALISTIC DEMOCRATS FOR THIS. READ THE HEALTH CARE BILL AND IF YOU DON’T KNOW WHERE TO GET IT WRITE YOUR CONGRESSMEN WHO WILL BE EXEMPT FROM THIS BILL. WAKE UP AMERICA, REMEMBER BARNEY FRANKS AND CHRIS DODD FROM CONN. HE LEAD YOU TO THIS ECONOMY WITH THE PIE HOLE FROM MASS. BARNEY FRANKS WHO ALONG WITH CHUCK SCHUMER AND THE PELOSI AND OTHER DEMOCRATS FANNIE AND FREDDIE WAS STRONG. GOD HELP AMERICA
You have only to look as far as the U.K.. Many of their wealthy leave the country (“tax exiles”) to live & conduct business elsewhere.
The New capital gains tax rate is now 20% as of this year. Please see Wikipedia chart for capital gains tax rates 2012. The chart has a history of capital gains and income tax rates for 2003-2013. For someone who ran on a platform of “I will not raise taxes on anyone making $250,000 or less”, I noticed that everyone in the lowest tax bracket will be paying 5% more in income taxes this year that is in addition to taxing the gains back to income tax for a moment so a person in WA makes a min wage of just over $9.00 per hr say they work full time 40hr per week times 52 weeks in working year = $9 x 2040 hrs= $18,260 gross income x 5% = $913 extra taxes. Now this doesn’t include any ductions however last time I checked it is a 33.33% increase in income tax on the poorest workers in America. Educate voters on that. To all reading this please talk with a tax accountant about the new tax laws for this year you may have noticed money missing from your paycheck already.
Low income earners do not pay any taxes. There may be withholding but they get their money back PLUS an alread share of “redistribution”. I’m personally aware of low income people getting as much $10K back but they have to file for it.
Bill Turbo Tax doesn’t show your figures to be accurate from Wikipedia and I trust a tax preparer more than a site that can be changed by anyone. The real issues is that income tax isn’t fair tax as there are too many ways to avoid paying taxes including acting through the Black Market that is around 1 T dollars. The Fair Tax gives the poor and low income a break while collect tax based on what people consume. It protects the poor and low income, encourages savings, and eliminates the loopholes to avoid paying the income tax.
God bless you Colonel, so simple yet complete as far as taxes are concerned, but only half the story, people who want to raise taxes are not concerned with budgets, they are concerned with POWER and CONTROL.