About Me

Name: Playful Walrus
Biography
Loading...

Create Your Own Blog Find Other Townhall Blogs

Comments

War on the Middle Class?

Posted by Playful Walrus on Tuesday, October 28, 2008 11:49:35 AM
Just who is conducting this war?  They are doing a horrible job, considering I’ve been hearing about a "war on the middle class" all of my life and the middle class is still here.  I’m considered middle class.  Obama might even consider me rich if he gets elected.

How exactly are we defining the middle class?  Homeownership, but not in the more expensive areas?  Someone who works a trade or office job and earns enough to only have one job?

If there is some group of elites conspiring to destroy the middle class and enslave the worldwide poor, they sure are taking a long time if they are really that powerful.  The Democrats would have you believe that the Republicans have been conducting a ware on the middle class.  Heck, after twelve years of Reagan and George H.W. Bush, GOP control of one or both houses of Congress in many of the recent years, and eight years of President George W. Bush, the Republicans have been "unable" to eradicate the middle class.  Is that only because Clinton was President for eight years in the middle of that, or Reid and Pelosi?

I’m beginning to think that this talk by Obama-Biden of "war on the middle class" is just a bunch of hooey.  Those guys wouldn’t campaign on hooey, would they?
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

Dorgan’s Whining About Companies Unfounded

Posted by Playful Walrus on Tuesday, August 12, 2008 12:52:28 PM
A Congressional report that says most companies in the US do not pay federal income taxes is making the news.  Jennifer C. Kerr, Associated Press writer, reports.
"It's shameful that so many corporations make big profits and pay nothing to support our country," said Sen. Byron Dorgan, D-N.D., who asked for the GAO study with Sen. Carl Levin, D-Mich.
Senator Dorgan is either 1) a complete idiot when it comes to economics, business, and finances, or 2) he’s counting on you to be a complete idiot in those areas.

First, I’ll let others explain what is going on here.
An outside tax expert, Chris Edwards of the libertarian Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called "S" corporations pay taxes under individual tax codes.

"Half of all business income in the United States now ends up going through the individual tax code," Edwards said.
You see, people immediately think of a corporation like ExxonMobile when they hear this story, but in reality, most companies are simple legal entities set up by an individual, a couple, or a small group of people; they are paying taxes on all of the money the company makes via their personal income taxes.  Your favorite band could be such a company.
It said companies may escape paying such taxes due to operating losses or because of tax credits.
If a company is losing money, good luck taxing them.  And tax credits are things that Congress set up in the first place.  It always amazes me when politicians complain about people have the audacity to play by the rules that they themselves set up.
About 25 percent of the U.S. corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.
Assets?  Well if they own property they are no doubt paying property taxes.  Or if those assets are things like machinery, they paid taxes on the purchase of the machinery, or the parts they used to make it.

Regardless, we get this:
"It's time for the big corporations to pay their fair share," Dorgan said.
Who decides what is “fair” anyway?  Beware when a politician says such things.

Guess what the dirtiest little secret of all is?  Corporations don’t really pay taxes at all.  Corporations are comprised of 1) investors/owners (like shareholders… people like you and me and anyone who has an IRA or 401(k); 2) employees.  So guess what happens when an corporation is taxed?  Either the 1) the investors pay with smaller dividends or reduced capital; 2) the employees pay through a smaller bonus or delayed raises or even pay cuts; 3) the customers pay through higher prices; 4) a combination or all of the above.

So don’t let the politicians fool you.  The only people who pay taxes are individuals like you and me – anyone who resides in the U.S., earns income in the U.S., invests in companies in the U.S., buys anything in or from a business in the U.S.  If taxes are raised or "loopholes" closed, it means you and I will be paying more.
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

Whiner Nation On Display in Dear Abby Letter

Posted by Playful Walrus on Tuesday, July 22, 2008 1:06:18 PM
In another “Phil Gramm is right” example, we have this:

TOM IN LONG BEACH, CALIF writes in to Dear Abby:
I am in my early 40s. Most of my good friends, whom I have known my whole life, have not given a second thought to our approaching "golden years."
And you are “good friends” with such irresponsible people?
No one is saving money for retirement, participating in any sort of plan or even thinking about how they will manage later in life.
This displays a breakdown in maturity and reasoning skills.  There are some basic realities that these people are not addressing, such as: we will all continue to get older until we die; it generally becomes more difficult to work as we grow older; medical expenses tend to increase as we grow older.
They all have fun, interesting, low-paying jobs.
In many cases, they simply don’t want to deal with anything more difficult than that.  It almost always takes hard work and planning and hard decisions and risking failure to make more money.
I worry that when my friends are senior citizens they will be destitute. They laugh off my worries.
They “laugh off” because it is their mechanism that allows them to avoid dwelling on thoughts of the inevitable.  Either they purposely do not think about it, or are in denial in that they think they will always be able to work and will enjoy doing so, or they think that one of the following will happen:

1) They will win the lottery.
        Not likely at al!
2) They will hit it big as an artist or inventor or writer or something like that with minimal effort.
        Possible, but it takes a lot of hard work and if they are in their 40s, chances are that ship has passed.
3) A relative will die and leave them enough to give them a comfortable life for the rest of their days.
        Not likely, especially when you consider taxes, inflation, and the money getting split.
4) They will find a rich man who will marry them and take care of them for the rest of their lives.
        For a woman in her 40s, that is extremely unlikely.  Such sugar daddies also attract 30 and 20-somethings, who are generally preferable to men enjoying their wealth.  Plus such men can easily insulate their wealth and leave it to others upon their deaths.
5) Wishful thinking, like in The Secret, will bring them wealth.
        God is not a cosmic bellhop.
6) Santa Claus, in the form of “the government”, will provide for all of their needs.
My parents are enjoying a modest but comfortable retirement which they worked for -- and planned for -- most of their lives.
Well guess what?  Seen #6?  That’s YOU and YOUR PARENTS who are going to be paying “the government” to take care of your friends and other people like them that you don’t even know.  That’s right – people who have been responsible, have worked hard, have sacrificed, and have lived within their means and planned for the future are going to be paying for the housing, food, recreation, and health, and much more for those people… many of whom went to universities they couldn’t afford, have lived in homes they couldn’t afford, drove vehicles they couldn’t afford, took vacations they couldn’t afford, bought entertainment systems they couldn’t afford, and generally lived it up while you were working late.  That’s the way socialism of the Democrat brand functions.
How can I inspire them to take action?
I’m not sure you can.  They’ve chosen to ignore reality for so long and are probably set in their ways.  They’ve hand many warnings, starting with parables that are taught to children.  There are so many opportunities to increase your earning power, to research investments, and to save and make investments.  I myself invest through no fewer than three investment vehicles straight out of my paycheck, before I even see the money, including a 401(k).  After that, I invest in other ways through regular, automatic deductions straight from my checking account, including a Roth IRA.  I own my home instead of renting.

There are also so many ways the average person can spend less in order to have more money to save and invest.

You could try asking them questions, like “Hey, my IRA is down a little, but it will come back.  How is yours?”  And when they say they don’t have one, ask, “Why not?”

However, they may be immune to reason.  These are the kind of people Gramm was talking about, or at least should have been.  They think they are owed a good living by “other people”.  And if they do invest, they think they should just be able to throw money anywhere and see a huge return.  These are the kind of people who grow bitter and angry and may even file what I would consider to be frivolous lawsuits as a surrogate for lottery winnings.  These are the whiners.

It is getting worse in part because of rise in people who are raised without a father to explain money, the economy, budgeting, and investing.  Yes, there are women who are smart in these areas, but they aren’t as common as the kind of woman who makes babies with a man who isn’t happily married to her and won’t be around much longer.

People should:

1) Plan ahead. Plans can change, but it is good to have a plan – what kind of lifestyle you want and how you will pay for it.

2) Get the education and training they need AND can afford.

3) Work as much as possible for the highest pay they can charge.  While in school, this will likely mean part time.

4) Spend less than they earn, avoiding interest payments (credit card debt, financing) as much as possible.

5) Consult a financial planner.

6) After building up a liquid emergency fund that can sustain them for six months, save and invest regularly.

7) Vote for smaller government.

8) NOT marry someone who has been financially irresponsible (or even allow them to shack up with them).

9) NOT make babies out of wedlock.

10) Unmarried men in particular should avoid spending a lot of money on dates.  If they hope to get married, any woman they’d want to marry will understand the wisdom of him spending less now in order to save for their future together.  There is no problem with expecting a woman who earns income to pay for herself as one way of keeping costs down.  Men who aren’t looking to get married but instead are dating only for sex should keep in mind that a woman has decided whether or not she is going to fornicate with him before he’s spent a dime.  A few women may be swayed if he spends a bundle, but are they worth it when there are plenty of other women who don’t require the expense?

Don't rely on the government.  SAVE FOR YOURSELF!
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

Plan to Tax California’s 'Wealthy' Even More

Posted by Playful Walrus on Wednesday, July 09, 2008 3:31:59 PM
So what is new?  This is typical from the socialist Democrats in California.  Evan Halper, Los Angeles Times staff writer, reports on a proposal that raises taxes instead of dealing with the fact that the state only has many more billions of dollars to dispense than it did a few years ago.
Democratic lawmakers presented a plan late Tuesday night to impose $9.7 billion in new taxes on the wealthy and corporations to avoid the cuts to government services in Gov. Arnold Schwarzenegger's budget plan.
Corporations, of course, don’t really pay taxes.  They simply pay employees and investors less, or raise prices for consumers.
Republicans, who hold enough votes to block a budget from passing, vowed to fight it.
Good.  I’m glad we still have some real Republicans in California – in office, no less.
Income taxes on families earning more than $321,000 would go up by 7.5%. Joint filers earning more than $642,000 would see an 18% hike.
To give you some perspective, check out home prices in California.  These people aren't all that rich.
The wealthy "aren't locked in to being here in California," said Senate Budget Committee Vice Chairman Bob Dutton (R-Rancho Cucamonga).
Good point.  This is ridiculous.  California has many billions of more dollars in revenue than it had just a few years ago.  Clearly, we are spending too much.  Enough is enough.
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

The Wrong Questions: Ask Not What the Government Will Do For You

Posted by Playful Walrus on Sunday, May 04, 2008 2:12:15 PM
Howard Hurlbut of Redlands wrote to the Los Angeles Times with the following questions for the POTUS candidates:
What would you do to end the widening chasm between rich and poor in America?

How would you restore U.S. credibility abroad?

Social Security has for years generated surpluses. What specific modifications would you propose to ensure its continued success?
I will answer them one by one.
What would you do to end the widening chasm between rich and poor in America?
I reject the premise of the question.  Hopefully, there is an increasing spectrum between the richest person and the poorest person, and hopefully, it is because the richest person continues to be as productive as he or she has been until now.  A rich person has more resources with which to acquire more resources, and we want them to put those resources to work, because that helps everyone else down the line, including the poor.  Because the rich person has more resources, that person can accumulate wealth at a faster rate than the poor person.

In our system, the rich need not get richer by making the poor poorer.  Ideally, the poor will also get richer.

That is because the pie is getting bigger.  It isn’t a matter of taking up more of the same size pie.

It is not the President's place to get involved.  I would do my best to ensure that the most people have the most opportunity go generate wealth.  I would do that by eliminating programs that encourage dependence on taxpayer money.  I would let more people keep more of their own earnings.  In turn, they will save, invest and spend, thereby providing opportunities to others.

Just as I would stop redistribution of wealth to individuals, I would also stop the government from redistributing wealth to businesses by subsidies.

Envy and jealousy can be very ugly things.  Instead of resenting your neighbor for doing well, why not strive to do well yourself?
How would you restore U.S. credibility abroad?
Credibility involves having people believe you mean what you say, and that you know what you are talking about.  Shall I assume you refer to intelligence showing WMDs in Iraq?  In that case, I would reiterate exactly why our intelligence operations reported such a thing, and show exactly what the Iraqi’s genocidal tyrant was and was not doing.

One way of maintaining credibility is to back up our demands.  We did just that when we went into Iraq.  If you make demands and then don't back them up, you lose credibility.  The tyrant was in violation of the cease-fire agreement.

I do not care if there are some people in other countries that resent our successes and power.  That is unavoidable.  The best and most powerful are always resented by someone.
Social Security has for years generated surpluses. What specific modifications would you propose to ensure its continued success?
Social Security is a ponzi scheme sham, and is only a “success” if you think it is a good thing to take money from hard working people and be a lot less productive with it than they could have been themselves.  We should fulfill our promises to the existing generations and let the generation about to enter the workforce know that we will be discontinuing this disastrous program and remind them that they should be saving and investing and insuring through their own actions and choices.

Hey Howard – if you are related to Bud, I give you props for that.  But I clearly disagree with your thinking.

Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive
« Previous1Next »