The Gospel Truth

Too Big To Fail Part II

May 14, 2010

Most people will agree that if they make more money they should have to pay my fair share. Well that’s essentially right and Steve Forbes called that a flat tax.

If one man makes $10,000 and his tax rate is my 10%, his tax is…$1000.  Good so far?

If my wealthy man makes $200,000, then his tax would be $20,000.  That means he makes 20x what the worker makes and he pays 20x that in taxes.  Seems fair and reasonable?

That’s not what we have today.  We haven’t had that since the 16th Amendment was passed in 1913.

For a definition of the Progressive Income tax, which I will use what I used  in class when I was teaching: by definition, the more you make, the higher the percentage they will take.

Most people misunderstand that and believe that it is the more one makes, the more one pays–that’s also true of the flat tax but this is far more sinister.

According to this tax the first individual will still pay his $1000 but the executive will pay $74,000 based on his progressive rate of 37%.   Now he is paying 74x what the worker is.

So under the two same examples, where the richer man who makes 20x the poorer man, now pays 74x what he pays.  Does that sound like he is paying HIS fair share.

Not if you listen to our tax-hungry president.

Like the plant in the Little Shop of Horrors, he needs more and more and more… money to fund his utopian schemes of massive self-destruction.

In 2011 when the Bush tax cuts expire, the rates will all go up.  Forget about that campaign promise.

Obama wants to raise this same fellow in my example to 43%, including Pelosi’s surtax.

And they keep eliminating our deductions.

On top of that they are talking about a Value Added Tax, (VAT) another misnomer because value is actually subtracted–call it a VST.

Now in Europe it can go as high as 20-30%.  I don’t know if they have local sales tax over there but if they do I don’t see why or how anyone buys anything.

If you were to buy a care at $20,000 and they put a 20% VAT on in addition to say a 10% sales tax that makes the car now cost $26,000.

So for our president to say we should thank him for lowering the boom on workers and employers is probably the most disingenuous statement this president has said so far.

And while I am on taxes, let me say within the ObamaCare Bill, there are all sorts of additional taxes, levies, fines etc that will discourage people from hiring any additional workers.

I believe it will institutionalize a 10-12% unemployment rate for many years to come.

That will just put a greater burden on those who actually work in this country.

How can Americans pay for all the spending this president who had the audacity (his favorite word) to complain about George Bush’s financial profligacy, has incurred?

Oh they have a plan.  They can simply print more money.

Of course the Chinese wont like this.  They will demand a higher interest rate, making the deficits even larger.

Remember supply and demand?  Well if the money supply goes way up, the vale of that money goes way down.

We call that INFLATION!

I think the president has set the stage for continuing the recession and maybe turning it into a full-fledged Depression.

And the world seems to be going along with him.  That’s real globalism–global self-destruction and it all begins with TOO MUCH GOVERNMENT.

Just look at Greece.  Why should anyone care about Greece and what happens to their government workers?

Nobody does…but they worry about what the Greek problem will do to Italy, Portugal, Spain, Ireland…England and you guessed it–America.

About a third of Europeans work for their governments.

Governments don’t produce anything.  They exist off the work and production of others who have to take the risks for failure–unless you are Government Sacks.

The only jobs Obama has saved or added have been government-related jobs.

Governments don’t produce anything, anyone would want to buy.  He wants more people to work for government and join a government union.

The world cannot continue to go on like this.  It is drowning in a Red Sea of debt.

This glitch in the financial markets this past week was just a warning, before-shock of the quake about to come.  As they say in California, the BIG ONE!

Unless world leaders can stand up to their municipal unions, like those in Greece, who would rather see their countries go to heck then give an inch, the world will fail.

What was that Anthony Newley song from the 1960’s, Stop the World I Want to Get Off?

You would think that someone as bright as Mr. Obama would understand this.  Surely he got more than C’s in Economics.

Then again MAYBE HE DOES!  And that’s the point!

Oh by the way, the originator of the Progressive tax system—-Karl, don’t call me Groucho Marx!  Makes you wonder why America’s leaders think this is the best system possible.


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