Smoke and Mirrors

August 3, 2011

The debt ceiling was finally raised this week.

The US will not default.

But how come I do not feel any better?

I kept listening to both sides…

Looking for that golden nugget

Will someone finally look at the whole picture

And come up with a meaningful plan?

Republicans want to cut cost

Are they really cutting cost?

All they are doing is cutting the amount of future increases

Not real cost

The democrats want to cut cost (future increases)

And raise taxes

Let’s make everyone pay their fair share

The bottom line there will be $1T dollars in cost reduction
in the

Next 10 years

Congress will form a special committee to recommend

$1.5T dollars of additional cost reductions

To be implemented over the next 10 years

All the while

The US deficit  is
projected to grow an

Additional $8 Trillion dollars

From $14.3 trillion dollars to $22.3 trillion dollars

Is this really cutting cost?

What steps are being taken to help…

Grow the economy….

Create jobs….

Restore confidence……

In America’s future?

We are currently borrowing 43 cents of every dollar we spend

At the current pace…

How long will this be

Sustainable?

The US cannot borrow its’ way out of this dilemna

We must devise a plan for the future

One that will rebuild our economy

Help put people to work

Promote stability

And insure prosperity for America’s future

Our forefathers had their disagreements…

But their goal was always for

The common good of the nation

They undertook projects

That they knew would not benefit them

But would provide for the future

What steps are we taking to insure a better future?

For our children and our grandchildren?

Have we allowed our political leaders to become

Complaisant

Charley Reese’s final column for the Orlando
Sentinel…
He has been a journalist for 49 years.
He is retiring and this
is HIS LAST COLUMN.

Be sure to read the Tax List at the end.

545 vs.
300,000,000 People
-By Charlie Reese

Politicians are the only
people in the world who create problems and then campaign against
them.

Have you ever wondered, if both the Democrats and the Republicans
are against deficits, WHY do we have deficits?

Have you ever wondered, if
all the politicians are against inflation and high taxes, WHY do we have
inflation and high taxes?

You and I don’t propose a federal budget. The
President does.

You and I don’t have the Constitutional authority to vote
on appropriations. The House of Representatives does.

You and I don’t
write the tax code, Congress does.

You and I don’t set fiscal policy,
Congress does.

You and I don’t control monetary policy, the Federal
Reserve Bank does.

One hundred senators, 435 congressmen, one President,
and nine Supreme Court justices equates to 545 human beings out of the 300
million are directly, legally, morally, and individually responsible for the
domestic problems that plague this country.

I excluded the members of the
Federal Reserve Board because that problem was created by the Congress. In 1913,
Congress delegated its Constitutional duty to provide a sound currency to a
federally chartered, but private, central bank.

I excluded all the
special interests and lobbyists for a sound reason. They have no legal
authority. They have no ability to coerce a senator, a congressman, or a
President to do one cotton-picking thing. I don’t care if they offer a
politician $1 million dollars in cash. The politician has the power to accept or
reject it. No matter what the lobbyist promises, it is the legislator’s
responsibility to determine how he votes.

Those 545 human beings spend
much of their energy convincing you that what they did is not their fault. They
cooperate in this common con regardless of party.

What separates a
politician from a normal human being is an excessive amount of gall. No normal
human being would have the gall of a Speaker, who stood up and criticized the
President for creating deficits. The President can only propose a budget. He
cannot force the Congress to accept it.

The Constitution, which is the
supreme law of the land, gives sole responsibility to the House of
Representatives for originating and approving appropriations and taxes. Who is
the speaker of the House now? He is the leader of the majority party.
He and fellow House members, not the President, can approve any budget they
want. If the President vetoes it, they can pass it over his veto if they agree
to.

It seems inconceivable to me that a nation of 300 million cannot
replace 545 people who stand convicted — by present facts — of incompetence
and irresponsibility. I can’t think of a single domestic problem that is not
traceable directly to those 545 people. When you fully grasp the plain truth
that 545 people exercise the power of the federal government, then it must
follow that what exists is what they want to exist.

If the tax code is
unfair, it’s because they want it unfair.

If the budget is in the red,
it’s because they want it in the red.

If the Army & Marines are in
Iraq and
Afghanistan
it’s because they want them in Iraq and Afghanistan …

If they do not
receive social security but are on an elite retirement plan not available to the
people, it’s because they want it that way.

There are no insoluble
government problems.

Do not let these 545 people shift the blame to
bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose
gifts and advice they can reject; to regulators, to whom they give the power to
regulate and from whom they can take this power. Above all, do not let them con
you into the belief that there exists disembodied mystical forces like “the
economy,” “inflation,” or “politics” that prevent them from doing what they take
an oath to do.

Those 545 people, and they alone, are
responsible.

They, and they alone, have the power.

They, and they
alone, should be held accountable by the people who are their bosses.  Provided
the voters have the gumption to manage their own employees…

We should
vote all of them out of office and clean up their
mess!

What you do with this article
now that you have read it… is up to you.
This might be funny if it weren’t
so true.
Be sure to read all the way to the end:

Tax his land,
Tax
his bed,
Tax the table,
At which he’s fed.

Tax his tractor,
Tax
his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his
pay,
He works for
peanuts anyway!

Tax his cow,
Tax his
goat,
Tax his pants,
Tax his coat.

Tax his ties,
Tax his
shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his
drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his
beers,
If he cries
Tax his tears.

Tax his car,
Tax his
gas,
Find other ways
To tax his ass.

Tax all he has
Then let him
know
That you won’t be done
Till he has no dough.

When he screams
and hollers;
Then tax him some more,
Tax him till
He’s good and
sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which
he’s laid…

Put these words
Upon his tomb,
‘Taxes drove me
to
my doom…’

When he’s gone,
Do not relax,
Its time to apply
The
inheritance tax.

Accounts Receivable Tax
Building Permit Tax
CDL
license Tax
Cigarette Tax
Corporate Income Tax
Dog License
Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax
(FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline
Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License
Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties
(tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License
Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate
Tax
Service Charge Tax
Social Security Tax
Road Usage
Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income
Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise
Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State
and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone
Recurring and Nonrecurring Charges Tax
Telephone State and Local
Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License
Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well
Permit Tax
Workers Compensation Tax

STILL THINK THIS IS
FUNNY?
Not one of these
taxes existed 100 years ago, & our nation was the most prosperous in the
world.
We had absolutely no national debt, had the largest middle class in
the world, and Mom
, if agreed, stayed home to raise the
kids.

What in the heck happened? Can you
spell ‘politicians?’

I hope this goes around THE USA at least
545 times!!! YOU can help it get there!!!

GO AHEAD. . . BE AN
AMERICAN!!!

Deficitly

May 25, 2011

With all the commotion going on around us

Osama…..tornadoes….floods

The public has been spared the talk on the debt ceiling

Did you hear the gang of six talks fell apart?

They were seen as representing the best hope

For a bipartisan deal to reduce the deficit

Senator Tom Coburn dropped out

Citing differences over entitlement spending,

Saying the 3 Republicans and 3 Democrats were

Unable to bridge differences over Medicare and Social Security

The clock is ticking,

We already exceeded the debt limit.

Now we are just shuffling payments

While waiting for a resolve.

How did we get to
this point?

There is some great information on the internet about this
subject.

Stephen Bloch did some extensive research on the deficit

And how it relates to each President

His report is titled:

US Federal Deficits, Presidents and Congress

Below are some of the facts I found interesting

  • First data he found showing
    a deficit was traced back to 1910
  • The single best predictors
    of deficits for most of the century have been war.
  • Starting in the 1970’s, it
    became harder to see a connection between war and deficits:
    • Permanent deficits became
      a way of life, regardless of whether there was a war going on.
  • The Deficit did not break
    the $1 trillion mark until 1981
  • The Deficit did not break
    the $5 trillion mark until 1995
  • During the first seven
    years of G W Bush presidency, the deficit was increased by almost twice
    the dollar amount as it had been for 32 years. (Running from JFK through
    GHW Bush).
  • When GW Bush entered
    office the deficit was $5.807 trillion
    • When GW Bush left office
      the deficit ballooned to $11,909 trillion.
    • The deficit increased
      $6,102 trillion
  • Since Obama entered office
    the deficit has grown to $14,268 trillion
    • That an additional $2,359
      trillion

Some other interesting facts:

  • Military spending has
    increased 81% since the year 2000
  • Fraud constitutes at least
    ten percent ($100 billion) of the nearly one trillion in taxpayer dollars
    that Medicare and Medicaid will spend this year.
  • The current tax system of
    the United States will collect about 18% of the GDP(Gross Domestic
    Product)
  • Spending needs are much
    higher, currently around 24% of GDP.

What makes up the 24%?

I referred to an article by Jeffrey Sachs (Economist and
Director of Earth Institute, Columbia University)

Focusing on best estimates for 2021, a decade from now

  • Social Security outlays
    will total around 5.2% of GDP
    • As Americans age and as
      health care cost have multiplied, The cost of Social Security and
      Medicare have risen from 1.7% of GDP in 1980 to 5.1% of GDP in 2011
  • Medicare will total around
    3.6% of GDP
  • Medicaid, assuming no
    drastic cuts, will total around 2.9% of GDP
  • Other mandatory programs
    for the poor, such as food stamps, will total 2.1% of GDP
  • Total defense spending is
    around 5% of GDP, most agree that defense should be cut and be around 3% of
    GDP
  • Most projections put
    interest cost on debt around 2.7% of GDP
  • Discretionary spending
    (cost used on public goods and services that cannot be provided
    efficiently by the private economy alone) will be around 4.5% of GDP

Now if you go and add up all these categories,

You will see that cost will total around 24% of GDP

In Paul Ryan’s plan, taxes would be kept at 18% of GDP and
spending would be cut to 19% of GDP.
However the deficit is still expected to grow to $16 trillion by 2021.

The Obama plan would have a slightly higher tax collection,
around 19% of GDP (by allowing Bush tax cuts expire for those making over
$250,000), while allowing the deficit to grow to $19 trillion by 2021.

Guess what!!!!!

 

They are still going
the wrong way!!!!!

Many experts feel that both of these current plans, as
presented seem practically impossible.

In several opinion surveys,

The public has spoken clearly about what to do:

  • Do not balance the budget
    by slashing Medicare, Social Security, or programs for the poor;
  • Increase spending on
    education and infrastructure;
  • Tax the rich and giant
    corporations.

This is not a practical solution either…….

It is our responsibility to stop the bleeding

Everyone will have to proportionally share in the sacrifice

Will someone step forward and have the vision and leadership,

To usher in this era……….

Will the public be accepting to the reality of their
resolution….

Or will we continue to allow our excesses to undermine us.

Let us know your thoughts…… email george@hbsadvantage.com