I received this via email about a week ago from a friend (average Joe) and thought it was well worth sharing. Just an honest opinion from a guy posting as Bob, on a working man’s discussion board. This is not an “expert” or paid opinion, just some blue collar guy calling it as he sees things. I see a couple of odd ‘misstatements’ , but the bulk of it seems true enough. I have made only minor changes to make this more readable, and added any links and tags. The discussion began with a link to Warren Buffet’s comments on taxes, thus the main theme here is taxes, but he goes on to address a couple of other things that us ‘working poor’ see as part of the collective problems that go unaddressed by “our” government. Please weigh in and feel free to correct any incorrect statements or assumptions ~sekanblogger.
I’m not quite sure what a “conservative” is. Is it the guy that wants to eliminate the EPA so that we can destroy any wildlife left in the country or is it the NRA guy that wants to conserve the wildlife, so he can shoot it? At least I know a liberal wants to conserve the wildlife and then not let us shoot it.
I still say the 35% tax on business PROFITS serves a purpose… spend it, or we’ll take it. I also say that the purpose of a small business is to essentially make no profit. The money should go to the employees, the owners, or to pumping up the business. If you own a business, why would you let profit fester in the business, and pay taxes on it, when you can just simply pay yourself.
On the “rich”. The Capital Gains thing is BS. Money you get for free is taxed at a lower rate than money you work for. On top of that, money you work for is up for SS and medicare/medicaid crap. 15.xx something percent. 2% less this year.
So, if you make all your money on Capital gains (the conscientious CEO’s taking $1 in salary). They are taxed at 15% MAX. The poor schmuck who doesn’t make enough to pay “income tax” and doesn’t have kids (no earned income BS), he’s paying a higher percent of his income out.
He’ll get it back, if he doesn’t die, but that is now an “entitlement”, as if you never paid into it in the first place. So he’s just paying a higher tax rate.
Whoever suggested a consumption tax, that’s about as regressive as you can get. 2 completely responsible people with decent jobs, raking in maybe 80-100k a year, have a kid to keep the grandparents off their back and possibly make a contribution to the world. Pretty close to 100% of their money is going to go towards consumption. Their tax rate is going to go up with a consumption tax.
The couple making a few million, who buy all their clothes in Paris and are able to “invest” 1/2 the money they bring in, their effective tax rate will be less than half than that of the normal middle class family.
Now a family that is just flat out poor, they are going to be purely crippled with a consumption tax.
Could a consumption tax be part of a well thought out (and paid for by lobbyists) tax plan? Possibly.
Europe is looking at passing a .01% tax on financial transactions, lots of exemptions, such as an initial IPO (you know when you are ACTUALLY investing in a company), bonds and some other crap. They are afraid it might push all the traders/gamblers out. Sounds perfect to me. They can all go to China, live in a concrete shack, and China can pick up their losses.
Greece is going to hell, and what do you hear about? There are no worries about Greece itself, or the Greek people, it’s all about the banks, and their exposure to Greek debt. Do we loan Greece the money so the banks don’t hurt, or do we let Greece and their people die and give the money directly to the banks?
Last year when I was in Vegas and was concentrating more on the the dancing girls than the table, nobody covered my losses. Bernanke and ‘Turbo Tax Timmy’ didn’t care that I lost money gambling.
Who gives a crap about the big banks, let them fail. This is not what banks used to do. They loaned money to local people and businesses, they took in deposits from local people and businesses, and gave you some interest on it.
Now they take in deposits and charge you a fee, so they make profit, then they borrow money from the Fed for damn near free, maybe loan you a bit of it, make a profit on that, bundle and leverage it and sell it to Fannie Mae. Then they take the rest and gamble on oil, gold, credit default swaps, stocks, bonds, whatever the hell they can get their hands on, leveraged to absolute hilt of course.
Correct me if I’m wrong here, but they are leveraging 40:1 (try that with your house), then buying oil futures, about $5k to control 1000 barrels of oil. So… you owe Bank of America 100k on a mortgage for your crappy little ranch in the suburbs (that they borrowed at .01% interest), they are leveraging that at 40:1. so your mortgage is now backing 4 million dollars worth of gambling. They pile that all into oil (they will never take delivery). So now your 100k mortgage is controlling 800,000 barrels of oil. 5% or so of what the US is using in a single day.
So leveraged and then on the margin, you are paying them 5% on your little mortgage (decent profit right there), which allows them to control 800,000 barrels of oil. That’s worth…. $64 million dollars. And we wonder why we are in trouble.
Take away the margin or the leverage, still an insane butt load of money that your mortgage is covering/gambling. Lots of free money to play with, money you will never see, money you will never get to play with, money that will never in the slightest ever benefit you at all (screws you at the gas pump though). But apparently the money that could never possibly see the average person is what “they” are worried about.
Why invest in producing something or adding value to something, just invest/gamble in funny money, less work, and you pay a lower tax rate.
We are so screwed.
(…and he had this to say about health care costs…..Joe)
Is it possible we could lower health care costs by cutting out the 3rd party “speculators”. The ‘for profit’ above all else insurance companies?
You know, the ones that don’t have a damn thing to do with me and my health, and don’t have a damn thing to do with the people that provide the health care, but just skim off the top, for profit, above all else. The ones that raise health care cost because of all the BS paperwork required and the policy of refusing everything the first time through.
It takes a minute for a Doc to grab my sack and make me cough. It takes the secretary 4 hours of paperwork to get paid for me coughing.
When a service is rendered, somebody needs to make some money, that’s just the way it has to work. When it is a basic service, a necessary service to some people’s survival, there shouldn’t be somebody in the middle skimming off money for just shuffling money, driving up costs for everybody.
Medical costs could drop drastically and still not stick it to the doctors. He (the doctor) wouldn’t need as many secretaries to deal with paperwork, but that would free up money other places in the economy, so “in theory” there should be new job openings in other sectors. – Bob