Presidential Math

The President has made it pretty clear that he wants to solve the fiscal crisis by increasing taxes on the rich.  In my last post I clearly showed that millionaires (people making $250,000 or more), pay over 50% of all personal taxes.  While I totally agree that we definitely are going to need more revenue, more importantly, we need REAL expense reduction.  The government has grown far beyond our ability to pay.  But that will have to wait for another column.

Today's post is to expose the ridiculousness of the President's proposal to raise taxes on the rich.  Again, please remember that if your household makes more than $250,000 a year you are a "millionaire", according to the President.

So the President has proposed raising tax rates on "millionaires" from the current top rate of 36% to 39.6%.  This combined with other changes to the tax code would result in $849 billion in new revenues over 10 years.  What the President and media fail to mention when they quote these figures is that the budget deficit just last year was $1.1 trillion.  So $849 billion over the next 10 years doesn't even cover the deficit this administration created just last year alone.

So instead of playing governmental games with these figures let's look at what this means annually.  The President's own budget for 2013 shows that the government will spend $3.8 trillion and plans to collect $2.9 trillion in revenues.  So much for a balanced budget.  If we stay on budget we will add another $900 billion to the deficit.  So the extra $84 billion that we plan to get from the "rich" in 2013 will only cover a very small portion of the planned deficit.

In fact, in October, the first month of the new fiscal year for the government, the deficit is already $120 billion!!  So we have already exceeded the amount we would have collected from the rich.

We have a spending problem, not a revenue problem.  Until politicians are willing to accept this reality we have no hope of solving our fiscal issues.

Tax the Rich - They Need to Pay their Fair Share

The President and the accomplice media continue to say the solution to all of our fiscal problems is to simply tax the rich.  The President claims the the rich need to pay their fair share.  What the President fails to provide is any facts when he reads from his teleprompter and the media is no better.  There was a time when the media was the great equalizer in this country, they actually investigated stories, dug into details and presented their findings relative to what was being claimed. 

Alas those days are long gone and now it is up to us to do the homework and point out the facts.  While everyone is entitled to their own opinion, they are not entitled to their own facts.

Let's start by examining the constant cry from the President for the rich to pay their fair share.  So first we have to agree on what is considered rich?  If you listen to the President that is hard to tell because in his first campaign, and his first years in office, the rich were considered those making over $1 million a year.  Now it appears as though the definition of millionaires has been changed to those making $250,000 or more.  Just listen to the President, he constantly says millionaires need to pay more in taxes and then you see what he proposes and it is clearly aimed at those making $250,000 or more.  So are we talking about millionaires or not?

Despite the rhetoric of the President, for purposes of this column we are going to assume the rich are defined as those individuals making at least $250,000 per year.  So, how much in taxes does this group pay?  To find this out one simply needs to go to IRS.GOV.  There are a number of tables you can view that show detailed tax data.

In 2009, the last year for which detailed data is available, people with Adjusted Gross Income of $250,000 or more paid $434 billion in taxes.  In total the government collected $865 billion in tax revenues from individuals.  So the group that we are so worried about paying their fair share actually provided over 50% of the total tax revenue from individuals. 

Below is a break down of the information by each income group.

As you can clearly see from the tables above, people earning over $250,000 made up less than 2% of the total tax returns in 2009, but they paid 50% of all the taxes.  So, if this isn't fair what should this be - 75%, 90%?  Also notice that people earning over $1 million are paying on average, just under $750,000 in taxes, while those earning $250,000 or more are paying nearly $100,000 in taxes on average.  Plus, the effective tax rates for those earning over $250,000 are significantly higher than those making less than $250,000.

You would never know this from the media.  They always conveniently forget to mention facts such as theses as they fail to fit the liberal narrative.  This is not about paying your fair share, it is clear from the data that the more you make the higher percentage of tax you pay.  If there is an argument if should be from those making $250,000 -$499,999 as they have the highest effective tax rates and now Obama wants to make them pay even more. 

Remember also, that this only shows individual income tax, not state, local, sales, social security or medicare taxes.  When those are added in these high income tax payers are nearly 50% in taxes already. 

We need to stop playing politics and start solving the problems in this country.  The only way we do this is if we are honest about what is really going on.  The only way we do this is by sharing the FACTS.

Photo ID - OK in Madison for Bus Passes, but not Voting

Our dear friends in Madison have been very vocal about their opposition to voter id, because they claim it disenfranchises the poor and elderly who don't have a driver's license.  They claim that to require someone to show a photo id in order to vote is a huge burden to a large segment of the population, despite the fact that free photo ids are provided in the voter id bill passed and signed into law.

So isn't ironic that these same liberals who can't stand the thought of showing an id to vote have no problem requiring that you show a photo id to use a bus pass.  Talk about hypocrites!!  So the exact population that they say would be disenfranchised by requiring an id to vote, now need to get a photo id just to use a bus pass.  But in the case of Madison, they don't offer to pay for the photo id if you don't have one.  You can't make this stuff up.

So why do they want to require a photo id for using a bus pass?  To stem the fraudulent use of bus passes.  Wow, what a concept, actually validate you say who you are before you use the bus pass.  Kinda like asking you to validate who you actually are before your vote.  If the photo id is such a great way to ensure the bus pass is only used by the rightful owner, than why the fuss over showing a photo id to vote?

You can answer that question yourselves.  By their own actions, the liberals in Madison have shown that the photo id is an effective deterrent to fraudulent bus pass use and therefore, would be an equally effective deterrent to voter fraud.  And since they are requiring people who ride the bus, who presumably don't have licenses, to show an id, it is no more of a burden for these people to show that same id they use for their bus pass when they vote.


 

Debt and Deficits - Know the Facts

It is important this November that people be informed.  If you don't know the issues, you have a responsibility to learn them.  Do not rely on what either party tells you.  Do your own research and may your own decision.  Don't just spout the talking points of either party.

You have a responsibility to make an informed decision, and not simply vote for someone you are told to vote for.  Please consider how your decision will affect you and your children and their children. 

With the welfare of our children in mind, let's consider for a moment the massive debt that has been accumulated the past four years.  While some will choose to blame George W. Bush for all the spending, it ignores the bigger issue - We have spent $16 trillion more than we collected in taxes so far as a nation.  $10 trillion of that has been accumulated by just two Presidents - Bush and Obama.

In 8 years in office, the national debt increased $4.7 trillion, under George W. Bush.  In the past 4 years, the national debt under President Obama has increased $5.1 trillion.  At this rate the national debt will be in excess of $21 trillion by the next Presidential election.  That would equate to over $185,000 per taxpayer. 

The path we are on is unsustainable!!  In the past 3 years the Senate has refused to produce a budget, the President has proposed budgets that continue to spend more than we have, which continues to add to the deficit.  These budgets have been a disgrace to the American people and have shown the lack of concern for addressing the fiscal issues in our country.  We need leaders who will deal with the fiscal issues at hand and not simply kick the can down the road.

Every individual in this county knows that you can not continue to spend more than you make.  Most households learned this the hard way during the economic crisis and the Great Recession.  So what did people do, they cut spending!!  What a novel idea.  Perhaps we should let a few of these people who had to tighten their own belts take a stab at trimming the Federal Budget.  I am sure they could find some ways to reduce spending.

Major corporations and small business also know the they can no continue to operate in lean times the same they did during peak times.  They learn to improve efficiency, delay capital spending and in some cases need to downsize, so that the size of the business is commensurate with the value generated.  These are really simple concepts that the public sector just doesn't seem to get or chooses to ignore.

During the good times, government was able to grow, unchecked as revenues were pouring in and there was a seemingly endless supply of cash, but that growth in government is never a one time expenditure.  Most all government spending is in perpetuity and only increases over time.  Once a program starts people find it difficult, if not, impossible to stop any Federal Program.

It is time for the Federal Government to start acting behaving like adults and face that fact that all of the Federal programs, can not be supported in the current economy and with current revenues.  As I pointed out yesterday, even if we tax 100% of all the revenue of everyone making over $200,000 per year we don't even begin to chip away at the deficit.  Unless and until we deal with the excessive spending we will not lower the deficit and the national debt will continue to rise.

Cutting spending is never easy, but neither is cutting back on the household budget, but we all do it and we all live through it.  We find a way to make it work.  We need our elected representatives to do their job and quit playing politics.  It is our money they are spending and we should demand that they only spend no more, and preferably less than we give them.

The debt issue is real and is an issue every household can relate to.  What would you do if this was your household budget?  Do you think any bank in the country would let you borrow $40 of every $100 you spend?   Clearly, you and I could not get away with what our Federal Government and many of our State and Local Governments are doing.  We need to demand balanced budgets and expect the same fiscal discipline you and I have to exhibit in order to keep a good credit rating. 

The decision you make in November, not only for President, but for all elected positions will determine if we address our fiscal issues or if they will become the next crisis we face.  If you thought the financial crisis was painful, just wait until we fall off the fiscal cliff.

Taxing the Rich - The Math Doesn't Work

This is a great piece that effectively and unemotionally explains the problem facing us as a nation with our excessive spending.  We hear all too often that all we need to do is tax the rich and get them to pay their fair share.  While that might sound like a great idea, the facts don't support this claim.  If people would just check the facts and challenge politicians to be honest, we could have an open honest discussion.  The political bickering is not helping us solve the problem.

Even if you tax everyone making $200,000 or more 100%, you won't collect enough to pay down this year's deficit, much less make any progress on reducing the $15 trillion we already spent that we didn't have.  Government has grown beyond our ability to pay for it and it is time the government, do what every business has had to do in tough times - downsize.


We need to quit demonizing the rich and get back to encouraging people to be innovative, take risks and excel.  We have rewarded complacency and what started as a safety net has turned into a way of life.  The intent of government assistance was exactly that assistance, not a sustained stream of income and benefits for life.

You can't make an informed decision in November if you don't educate yourself.  Take some time and watch this video!!

Numbers that should scare us all

We all know about the fiscal crisis that is affecting Europe.  Way too much governmental spending and excessive budget deficits have caused a crisis in the region.  Citizens in these countries are resisting austerity measures as they have become addicted to having government provide their every need.  It is clear something must be done in Europe to avoid a financial crisis that could pull the whole world back into recession.

What isn't covered is the media is the fact that the US has the highest Government Debt per capita.  Worse than Greece, Spain, Ireland and Portugal.  All of the countries we hear about nightly.  But why is it we hear nothing about US debt levels?

Given that the per capita income in the U.S. was just over $27,000, this debt load represents almost two years of income!!  No matter how you look at this, the current levels are unacceptable.  But, due to our reckless spending the last three years and failure to even pass a budget, the numbers are even worse now and if they keep up will be catastrophic by 2016.  And these estimates don't take into account the enormous impact that Obama Care will have on the debt and deficit.

The table below shows the debt per citizen and per taxpayer from 2000, 2004, 2008 and 2012.  It then projects values for 2016 based on the percentage increase we saw between 2008 and 2012.  I highly doubt that the increase between 2012 and 2016 will be less than 50%, more likely it will be significantly higher given the record deficits the past three years.

And what did we, the taxpayers get for a 50% increase in debt per taxpayer between 2008 and 2012?  Nothing, except a weak economy, high unemployment, lower 401(k) balances and many of us are making less now than we did 4 years ago.

It is time for our politicians to stop talking and starting solutioning!  We the taxpayers can not afford more debt.  Families and States are forced to balance their budgets, it is time the Federal Government do the same.  We hear lots of strong talk about no Corporate Bailouts, but we should have equally strong talk about no Government bailouts.  We need Congress to set a plan for reducing this deficit, living within their means and fixing this fiscal crisis.  We need to downsize government just like businesses have to downsize during difficult times. 

The government has grown beyond our ability to pay for it and no amount of tax increases on the "Rich", those making $250,000 or more, is going to fix this mess.  I have posted data before that shows that even if we tax 100% of the income that is earned by these "Rich" taxpayers it only covers the current years deficit and does nothing to lower the total debt.  So we need to stop this non-sense about taxing the rich and focus our efforts on reducing expenses substantially!!

Politicians can talk all they want, but the facts are clear.  It is up to us to tell these politicians what we expect and if they do not perform, we need to vote them out and we need to replace them with people who are willing to make the tough decisions and put the taxpayer before their desire to be re-elected.

Make your voice heard this November.

Thank You Letter from a Taxpayer

This is the "thank you letter" many of you may have heard read on the radio, thought it was worth sharing if you haven't already heard this...


To all leftists, occupiers, union thugs and malcontents,

Thank you! What an election!

We couldn't have done it without you. Without your tantrums, outbursts and boorish behavior we might have stayed home for this election. Without your filthy, pot smoking hemp -headed minions occupying, dirtying and damaging our Capitol we might have been complacent. Without your obnoxious protests, boycotts and other actions from your union playbook, we might have sat this one out.

But you couldn't hold back. You couldn't restrain yourselves and behave like adults. You couldn't accept the 2010 election results. We sat and watched as you erupted in a juvenile hissy fit that embarrassed Wisconsin. The spectacle you created is what motivated us. And thanks to your pathetic behavior, we won. We turned out. Big time! And now we are organized and energized. Committed. "All in". And we aren't going away. We now have our own organizations (no dues required), an army of volunteers and the means to communicate. And countless new sources of funding, including a donor base from all 50 states. And we have "iverifythe recall" to ferret out your infiltrators in our future local elections.

So thank you little boy Tate, Graeme Zielinski, Fred "Loonie" Levenhagen, Ismael Ozanne, Maryanne Sumi, Noble Ray, Charles Tubbs, Joanne Kloppenberg, Segway Boy, John Chisolm, public employee union members, UW TA's, WEAC, SEIU, MTI, AFSCME Council 24 in Union Grove and WI prison guards,. Thanks for the death threats, the intimidation, the bullying, belligerence, thuggery and goonish behavior. The lack of ethics and the failure to enforce rules and laws. Thank you for putting your selfish, greedy motives on display for all taxpayers to see.

Your antics might have made you feel good but they didn't make you look good. They sickened the rest of us.

Thank you Shirley Abrahamson and Ann Walsh Bradley. Your petty politics woke us up. Thanks you Miles Kristan for dumping the beer on Robin Vos's head. Thank you University doctors for writing the phony excuses; Madison teachers for calling in sick or dragging your students to the protests without permission. Thank you Katherine Windels for making death threats against the Governor. The noontime capitol singers who taunted Sheboygan high school students. Thank you WEA Trust for raping Wisconsin taxpayers. Thank you Gwen Moore for your embarrassing minstrel show. And thanks all of you for harassing the Walker family at their private home.

You have all been exposed. Your tactics have been rejected. Your bad behavior has been forever captured on You Tube.

Thank you Peter Barca and fellow Assembly members for donning your foolish orange T-shirts and screaming "shame" at legislators just doing their jobs.

Thank you Mark Miller and all 14 senators for fleeing the state and making fools of yourselves in the process. Your combination of childishness and ignorance fits in very well in Illinois. I’m sure you felt right at home. Thanks for showing us what democracy doesn't look like.

And Mayor Barrett. How grateful we are that you chose one low road after another in your issue-less campaign against the Governor. This was your strike three. You are out. Take a seat on the bench and stay there. I have a hunch this was your final at-bat.

All of you helped turn Wisconsin permanently red. Your Governor, Scott Walker, will not just complete his first term, he is all but assured as many future terms as he seeks. He will be your governor for a long, long time. Get used to it. And his national "rock star" status just might lead him to be your President some day.

Just think, it couldn't have happened without you! So to all of you blue fisters, thank you from the bottom of my happy, red heart.

Sincerely,

A Wisconsin Taxpayer