Tag Archives: taxes

SCHUMER ATTACKS FACEBOOK CO-FOUNDER. WANTS A BIGGER PIECE OF SAVERIN’S MONEY TO GO TO THE GOVERNMENT

Eduardo Saverin was born in Brazil and lives in Singapore which is his legal residence.  He applied for American citizenship and attended college in the United States where he met Mark Zuckerberg, and by some accounts was the prime techy in the structure of Facebook.

Saverin stands to get a big pot of money when Facebook finally becomes a public company and he will pay U.S. taxes on his gain when he sells the stock.  But all the tax that is legally due, and that’s about 600 million dollars, is not enough to satisfy the Democrats led by Chuck Schumer.  They plan to introduce a bill to double that.

It doesn’t end there. The Democrats also want to bar the man from  re-entering the U.S.  Way to go Democrats, an enterprising young man manages to create an additional 600 million dollars for the U.S. treasury and you want to pass a law preventing him or anyone else from coming back and doing it something like that again.  You are driving America from the land of opportunity to becoming the land to avoid for anyone with enterprising ingenuity. Yuk!

OBAMA’S BUFFETT PLAN FOR TAXES

“It’s confoosin but not amoosin.”  Lil Abner

From the Associated Press:

WASHINGTON (AP) — President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers.

The federal income tax rate for payers with taxable income of 379,150 or more, which obviously includes millionaires, is 35%.  What does the AP mean by “middle income”?  If they mean people with taxable income between 34,500 and 83,500, their rate is 25%.  Is Obama proposing that millionaires who are now taxed at 35% should pay at least 25%?  That can’t be.

The AP says that on Monday, Obama will announce what he will call the “Buffett Rule” for the rich.  Perhaps we will know what it is after he proposes it.  At least that’s better than having to wait until Congress passes it.

The AP explains:

“The measure would be in addition to $447 billion in new tax revenue that Obama is seeking to pay for his short-term spending and tax cutting plan to jump start the economy.”

How’s that again, a $447 billion “spending and tax cutting” plan?  I’m confoosed.  I didn’t know spending was a tax cutting measure.

As I understood it, Barack Obama’s most recent jobs plan calls upon Congress to appropriate another $447 billion that the President and his administration can spend as they see fit to create some jobs.  But the President did say in his speech that he would “cut payroll taxes in half”, temporarily.  Payroll taxes are those deductions from your pay that go for Social Security and Medicare.  Obama also said it is time to “raise middle class taxes”.  Aha!  I think I’ve got it.  If we raise middle class taxes to 35% that will “ensure that millionaires pay at least at the same percentage as middle income taxpayers”.  Now that is amoosin!  But I’m still confoosed.

THE SUPER-RICH AND THE SATURDAY NIGHT BOWLING LEAGUE

The super-rich don’t need all that money.

Hi there!  My name is Joe.  There is no question about it; the super-rich don’t need all of their money.  Let me restate that so it sounds better; they don’t need all of the money they have.  I make 135,000 dollars a year.  That’s not bad but it doesn’t mean I’m rich.  If I made 200,000 I could live like a king.  That’s enough for anybody.  No one in my Saturday night bowling league makes that kind of money.

The man who gave me my job is super-rich.  I don’t know how much he makes but it must be big bucks because he has a lot of people working for him.  The government should take some of it away from people like that.  Let me say that differently so it sounds better.  They should pay more taxes.

Hola!  My name is José.  Rosa and me, we come here 4 year ago.  We both honest, and Rosa and me we both work hard.  We do okay.  We make, I think thirty, thirty five thousand.  I drive a truck.  Rosa cleans house for some rich people who make 135,000 dollars every year.  I don’t think they need all that mucho monies.  That’s okay; they give Rosa a job.

Hello!  People call me Horse because I am bigger and stronger than most of the other workers on the farm.  This year I pick strawberries.  Last year I worked on apples and peaches.  I loaded the heavy crates on a truck.  The driver was a nice man named José.  He didn’t lift crates; he didn’t have to.  José was rich.

—  oOo —

It’s true; the super rich don’t need all that much money.  But somehow I think we are all better off because they have it.  Think jobs,  Think hospitals and other philanthropies.  What would the world be like if no one was rich?

RANDOM THOTS – THE COLUMN

Inflation
Don’t look now, but inflation is peeking around the corner.

We are getting a very, very sharp rebound in core inflation and much more than the Fed had bargained for.”  Eric Green, chief economist at TD Securities in New York.

Overall consumer prices were up 3.6 percent from a year earlier,   Reuters

Last months drop in gasoline prices masked the increases in everything else. The wholesale price of cheese is up 23% since year end, butter 45%. Grocers are absorbing much of the price increase but that won’t prevail very long.

The debt thing
Obama says the American public is crying out for higher taxes. It’s just stubborn ideologues in Congress who are opposed to paying more income tax. He may be 45% right. That’s the number of people who pay no taxes but still enjoy benefits paid for by those who do.

The President says Congress is ignoring the will of the people by keeping taxes down. The solution is simple; add another line to the income tax form so all the unhappy people can add whatever extra amount makes them happy.

Big oil profits
ExxonMobil’s has operations in more than 100 countries around the world. The part of the business that refines and sells gasoline and diesel in the United States represents less than 3 percent – or 3 cents on the dollar – of Exxon’s total earnings. For every gallon of gasoline, diesel or finished products the company manufactured and sold in the United States in the last three months of 2010, Exxon earned a little more than 2 cents. That’s not a typo. Two cents.

Large oil companies risk capital, have big holdings confiscated by nations, transport crude from well to refinery, refine or pay for refining and transport the final product to thousands of service stations.  For that they make about 2 cents a gallon.  Federal and State governments do none of it, yet they make an average 50.1 cents per gallon in taxes.  Then the demagogues call the oil companies rapists.

THOSE GREEDY AMERICANS

A recent study revealed 45 percent of Americans didn’t have to pay any income tax for 2010.

Now a Gallop poll finds that 43 percent of Americans think the amount they pay in tax is just about right.

What about the other 2 percent? Some people are never satisfied.

TAXES HAVE CONSEQUENCES

People react to taxes. That is why a 10% increase in a tax rate does not produce a 10% increase in revenue. Two of the fastest growing states in the Union are Florida and New Hampshire, neither of which levies an income tax. California has the greatest financial shortfall and the highest income tax rate in the nation. These are not coincidences. They are the result of personal and business reaction to relative tax rates.

Ireland is considering raising the Corporate tax rate from 10 to 12.5 percent. Microsoft, Hewlett Packard, Merrill Lynch, Intel and Google have all made public announcements that they may locate processing operations elsewhere if such a proposal becomes law. Should just one of them carry through with a move, Ireland could lose more by loss of that taxpayer than it gains from the increase in rates. You can expect not only the companies that expressed their objections, but all international corporations to reconsider any expansion plans they had for within the Emerald Isle.

The loss of manufacturing in the U.S. is not just cheap labor elsewhere; it is also the corporate tax rate. At 35% it is the second highest in the developed world. Those who complain that jobs are being exported overseas should be arguing for reducing the corporate tax rate. More often than not, they are doing just the opposite.

THEY ALL WENT HOME

Congress is not in session. The Democratic leadership closed up shop until after the election.  That leaves voters in the dark with regard to the coming tax increases. You know increases are coming but you don’t know how much. That’s by design.

Right now the Democrats greatest fear is a stalemate. Advancement of the liberal agenda will come to a halt if Republicans win control of the house. The window will be slammed shut on tax increases for at least two years. The Democrats ace-in-the-hole is the automatic tax increase that will occur if the Bush tax cuts are allowed to expire. That’s the plan.

To expose that hand before the election would be political suicide. No one votes for higher taxes. After the election all they have to do is … nothing. Or, to keep up appearances, debate the issue to death until the end of the year. They were unable to pass a budget for a whole year. Not passing a tax bill for a few weeks should be easy.

TAXES HAVE CONSEQUENCES

Rational Expectations

John Kerry docks his yacht in Rhode Island where taxes are lower rather than in Boston Harbor which would be a little more convenient. Kerry isn’t the only one, you can be sure of that. Rhode Island gets more revenue because their tax rate is lower. Massachusetts gets less revenue because their tax rate is higher.

Do not be critical of John Kerry for moving his boat, excuse me, his yacht. It was the smart thing to do. You and I would do the same if we had a yacht, in my case it would be a boat.

This is but one example illustrating why a 10% increase in tax rates does not produce a 10% increase in revenue. People have alternatives. Economists have a name for it. They call it the law of “Rational Expectations”.

Debt and Taxes
California and New York are two of the states in the nation with the weakest balance sheets.
California and New York are two of the states in the nation with the highest rates of taxation.
This is not a coincidence.
Bob B

FORMER PRESIDENT BUSH RAISES TAXES

FORMER PRESIDENT BUSH RAISES TAXES

The Bush tax cuts are coming to an end. Taxes are going up. Everyone knows it, even those who deny it. Bush is to blame.

This was Bush’s law. He is the one who signed the bill into a law  allowing taxes to be hoisted back up next year. Obama had nothing to do with it. The Bush-BP spill is hardly behind us, the Bush recession is worse than we thought, and now Bush is raising our taxes.

I am mad! I am so mad I could spit and slur!

CLINTON CALLS FOR MORE TAXES FROM THE RICH

Hillary has just piped up with her opinion that the rich still have too much money: “The rich are not paying their fair share. – Wealthy Americans don’t pay enough taxes.”

In support of her argument that income tax rates should be increased on the rich, Hillary cites Brazil, “Brazil has the highest tax-to-GDP rate in the Western Hemisphere and guess what — they’re growing like crazy.” One should never trust a Clinton. Income taxes are lower in Brazil, not higher. The maximum income tax rate in Brazil is 27.5%. In the U.S. it is 35% and going higher when the Bush tax cuts expire.

Random Thots readers will be quick to note that Mrs. C. quoted the “tax to GDP rate”, not an income tax rate. She knows very well that that distinction will be lost among the vast audience of her remark. Those quick enough to catch it will also be astute enough to know it signifies a low GDP, not a high tax rate. Furthermore, in no way is it a measure of relative tax on the wealthy.

There is a faction in this country that longs for America to be more like some other country. Hillary and Gore like Brazil. Tom Friedman at the New York Times has lamented time and again that we should be more like China. The whole Democratic Party seems to prefer we become more like Europe. Perhaps we should set aside a state like Vermont or Minnesota and set up a government with finances like that of Greece, health care like that of England, human rights like China and crime like Brazil then offer it as a refuge for those with such longings.

Bob B

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