FedUpUSA

Archive for the ‘Tax Revenue’ Category

I’ve watched this movement, I’ve talked to people within it, I’ve observed.

And now I have to ask the salient question: Where do you actually stand on one important part of the issues facing this nation — and indeed the world?

You need to decide.  And the question being asked here is simple: Do you or do you not accept, and formulate all of your other views and premises, around the following central point — “Government must spend no more than it taxes.”

It’s a yes or no question and no weaseling is allowed.

A “yes” answer means, incidentally, that the government must cut spending by some 45%, raise taxes by 45% of the budget in received funds (not “rates” on some group — incidentally this is pretty close to a 100% tax increase!), or some combination of the two – right now.

Now let me put the gauntlet down in front of you: If you don’t support this, and come out for an immediate cessation of all deficit spending pretty much in the contemporary, immediate format, I cannot support you — and neither can anyone else with any hint of intelligence.

I recognize that “the 99%” believe they got screwed by the banksters (the “1%”, which really ought to be the 0.01%.)  You’re right.  But screwing others will not make you whole.  You cannot become better off economically by taking a dollar from one pocket and putting it in the other.

This means that the “Free $hit” army nonsense has to be eliminated from your ranks, from your speech, from your demands and from your protests.  And it has to happen now.

It should happen because you voluntarily recognize that continuing it is (1) destructive because it is (2) impossible to provide and thus (3) you will contribute to the destruction of this nation and her government if these demands continue.

Note that this does not mean you can’t argue for justice.  Justice occurs when you borrow money and can’t pay — you go bankrupt and lose your “stuff” and your credit rating.  But it also means that the person who loaned the money loses his or her investment at the same time.  That is justice — not getting a “free house” or “free education” because you “deserve” it.

It is the latter half of the check and balance found in justice that hasn’t happened.  It is the frauds involved in making bogus loans, securitizing bogus loans and lying about them, then knowingly selling crap labeled as “Grade A Chocolate”, cost-shifting in the medical system and exempting student loans from bankruptcy that has led to these problems.   Private banks put all this crap together and lobbied for it, getting the ability to steal from the common man in the process because people demanded “free stuff” and to get it government had to deficit spend.  That in turn resulted in the ability to cover up the economic rot caused by offshoring your jobs and destroying our economy — for a while.

The limits of that cycle have been reached.  It thus now will end, not because someone wants it to or doesn’t, but because the math mandates that it cannot continue.

If you continue to press for this destructive cycle to continue the damage that will be done our nation, to you, to your children and grandchildren will go up exponentially.  That damage may reach the level of government and civil society collapse, and if it does odds are that what comes out the other side is much worse than what we have now in terms of corruption and loss of freedom.

In short, we have to be adults and cut that crap out — right now.

So read the question above, debate it and then answer it.  Do so in your General Assemblies, on your mailing lists, in your public pronouncements.  But do it soon, because just as the Tea Party was co-opted by the “Guns, Gays and God” radical right wingnuts I see the same bomb-throwing rhetorical garbage corrupting what you’re trying to do from the radical left.

There is no solution in the GGG radical right wing.  It won’t work because it does not demand the cessation of the theft and fraud, the end of deficit spending right here, right now, today, and the prosecution of those who committed fraud upon the public everywhere we can find it.

But likewise there is no solution in the “bomb-throwing anarchist” left wing or calls for more “free stuff.”  It won’t work for the same reason: It does not demand the cessation of the theft and fraud, the end of deficit spending right here, right now, today, and the prosecution of those who committed fraud upon the public everywhere we can find it.

You must, and only you can, decide.

Is OWS a force for positive change, or have the real and just complaints that led to your formation been co-opted by those who have no solution to offer that can actually work and will advance justice and freedom for everyone in society, just as the Tea Party was co-opted and hi-jacked?

I, and others, are waiting for your answer.

To wit….

“The present government has done absolutely nothing during the last 12 months to speed up privatizations, reduce the public sector or open up closed professions,” (elided), a leading economic analyst, told me recently in an interview. “In these 12 months it has not fired even one civil servant. The only thing it is doing is trying to tax the private sector out of existence. Why should we believe that they will do something different now?”

Oh wait….. we’re not talking about America in this regard, are we….

Oh yes we are.  The same disease infests us as infests Greece.  While Obama prattles on about hiring more cops, hiring more teachers, protecting the civil servants of all stripes — and not only during their tenure, but also in retirement — he at the same time proposes taxing the private sector out of existence.

Isn’t it funny how The Wall Street Journal is all to happy to print that OpEd regarding Greece, but not a word on the same subject in America?

Inquiring minds are digging deep into a 266 page PDF called USA Inc. a basic summary of America’s financial statements.

It is loaded with stunning graphs and charts on Social Security, Medicare, Medicaid, TARP Bailouts, Fannie Mae and Freddie Mac, military spending, tax revenues, and various projections. Here are a few images, but please give the document a closer look when you have a few moments.

Click on any chart to see a sharper image.

Cash Flow

Expenses at a Glance

Unfunded Liabilities

Federal Spending as Percent of GDP

Note this mess started with the creation of the Fed

Growth in Entitlement Spending

Take a step back, and imagine what the founding fathers would think if they saw how our country’s finances have changed. From 1790 to 1930, government spending on average accounted for just 3% of American GDP. Today, government spending absorbs closer to 24% of GDP.

Spending + Interest vs. Revenues

By 2025, entitlements plus net interest payments will absorb all – yes, all – of USA Inc.’s revenue, per CBO.

Less than 15 years from now, in other words, USA Inc. – based on current forecasts for revenue and expenses – would have nothing left over to spend on defense, education, infrastructure, and R&D, which today account for only 32% of USA Inc. spending, down from 69% forty years ago.

This critical juncture is getting ever closer. Just ten years ago, the CBO thought federal revenue would support entitlement spending and interest payments until 2060 – 35 years beyond its current projection.

To 25 Countries in Defense Spending

Entitlement Spending by Household

Medicaid Underfunding

When Medicaid was created in 1965 to provide health insurance to low income Americans, 1 in 50 Americans received Medicaid, now 1 in 6 Americans receives Medicaid.

Healthcare Spending

Social Security Workers vs. Retirees

Social Security Dependents

GSE, Fannie Mae, Freddie Mac Expansion

If that is not a shocking state of affairs, what is? There are lot more charts and graphs in the PDF.

Mike “Mish” Shedlock

Global Economic Analysis

Essex South Register of Deeds John O’Brien announced today that he will be seeking over $22 million from the Mortgage Electronic Registration System, ‘MERS’ which represents several major banking conglomerates.

READ IT HERE

Problem solved.   It’s that simple.

This is what needs to be done, not just in the UK, but all over the world.  The majority of taxpayer money is now going to support the large banks, which are insolvent due to their reckless gambling with the money they made from creating money, charging interest and inflating the prices of things you need to buy.  Well, now governments have made it possible for them to continue gambling, but now, using the money you pay the government in taxes.   Is it little wonder governments are now broke?  All their revenues collected are going to the banks!  Cut entitlements to BANKS and then we can…..

STOP THE LOOTING AND START PROSECUTING!

The man who has rapidly emerged as the most vocal Obama critic, Mort Zuckerman, has just penned his most recent scathing anti-administration missive, this time focusing on the schism in US society between “preferred-status” public and shunned private-sector employees, concluding that “Americans cannot maintain their essential faith in government if there are two Americas, in which the private sector subsidises the disproportionate benefits of this new public sector elite.” Is this most recent split in US society being cultivated to take the place of the Wall Street – Main Street dialectic, which even Obama is now forced to realize is a fight he is set to lose (just imagine how anti-Obama Cramer would get if stocks drop by 0.001% during the teleprompter’s next media appearance)? Certainly, in a society that exists simply on the basis of a simple ongoing “us versus them” distraction, while the true crimes continue unabated behind the scenes, this is not an impossible assumption. Here’s a suggestion to Mort and whoever else wishes to peddle more such diversions: how about framing the next conflict where it rightfully belongs: as that between America’s people and its criminal ruling elite?

Full Op-Ed below:

America’s public servants are now its masters, first published in the Financial Times

by Mort Zuckerman

There really are two Americas, but they are not captured by the standard class warfare speeches that dramatise the gulf between the rich and the poor. Of the new divisions, one is the gap between employed and unemployed that President Barack Obama seeks to close with yet another $50bn stimulus programme. Another is between workers in the private and public sectors. No guesses which are the more protected. A recent study by the Mayo Research Institute found that “private-sector workers were nearly three times more likely to be jobless than public-sector workers”.

Political tension is bound to grow when jobs disappear faster in the private than the public sector, just as compensation in the former is squeezed more. There was a time when government work offered lower salaries than comparable jobs in the private sector, a difference for which the public sector compensated by providing more security and better benefits. No longer. These days, government employees are better off in almost every area: pay, benefits, time off and security, on top of working fewer hours. Public workers have become a privileged class – an elite who live better than their private-sector counterparts. Public servants have become the public’s masters.

Take federal employees. For nine years in a row, they have been awarded bigger average pay and benefit increases than private-sector workers. In 2008, the average wage for 1.9m federal civilian workers was more than $79,000, against an average of about $50,000 for the nation’s 108m private-sector workers, measured in full-time equivalents. Ninety per cent of government employees receive lifetime pension benefits versus 18 per cent of private employees. Public service employees continue to gain annual salary increases; they retire earlier with instant, guaranteed benefits paid for with the taxes of those very same private-sector workers.

More troubling still is the inherent political corruption. Elected officials tend to be accommodating when confronted by powerful constituencies such as the public service unions that agitate for plush benefits and often provide (or deny) a steady flow of cash to election campaign funds. Their successors will have to cope with the inherited debt burden – and ultimately the nation’s taxpayers are stuck with the bill.

As Governor Arnold Schwarzenegger has pointed out, spending on retirement benefits for California’s state employees is growing at three times the rate of state revenues, now exceeding $6bn annually and growing at the rate of 15 per cent a year. In other states, however, the politics of public pensions appear to be changing. In Michigan, Governor Jennifer Granholm, a Democrat, recently enacted a teacher pension reform that should save about $3bn over 10 years by increasing the amount workers must contribute. Illinois raised its retirement age for newly hired public workers from as low as 55 to 67. Chris Christie, the Republican governor of New Jersey, decided that even if it took bruising clashes with public worker unions, public service compensation reform was essential for the fiscal health of the state. His stance surprised many, but it made him a national figure.

There is no quick fix to deal with the billions in unfunded liabilities. Public service employees are almost impossible to fire, except after a long process and only for the most grievous offences. What is more, the courts have ruled in many states that pension increases granted by elected bodies are vested benefits that must be paid no matter what, precluding politicians from going back and changing past agreements.

The only fair solution is to take the politicians out of the equation and have fully independent commissions in charge, fixing the scale of salaries and benefits for public-service workers and establishing an affordable second retirement tier for new employees. More reasonable retirement ages should be in order, such as 65 for general employees and 55 for public safety employees. This would take nothing away from the existing benefits of current employees.

A fundamental rethinking of the public workforce is necessary. Americans cannot maintain their essential faith in government if there are two Americas, in which the private sector subsidises the disproportionate benefits of this new public sector elite.

ZeroHedge