Thread: Already Looking forward to 2011!!!

Boghie,

I wish you would not hold back, it makes it hard to understand were you are coming from.

Did you notice the percentage increase will be about the same for taxable income of 10,000 as it is for 100,000? 194/1000 =19.4% vs. 3464/17375=19.9%?

The $194 will hurt the family at $10,000 more than the $3,464 will hurt the 100k family.
Talk about regressive. Hope and change.

Originally Posted by Jackbnimble

Did you notice the percentage increase will be about the same for taxable income of 10,000 as it is for 100,000? 194/1000 =19.4% vs. 3464/17375=19.9%?

The $194 will hurt the family at $10,000 more than the $3,464 will hurt the 100k family.
Talk about regressive. Hope and change.

+1 - wish I had the 100 grand income and bigger taxes - sheesh

Ok...this is because those tax breaks under the former Administration are going away in 2011??? So why are you blaming Obama, the Congress under the Bush Admin wrote it that way so they could play Creative Accounting - and that creative accounting even needed the wars off budget. If Congress does what is supposed to happen if we were going to be financially responsible based on the assumptions of the time, the tax breaks should go away.

But, you are assuming it's going to be Groundhog Day in 2011 and no one is going to notice. I don't think that's going to be the case - everyone knows what's coming. Someone's gonna squawk about such a big hit, because even though the breaks were phased in, the end of them wasn't. So if you are a conspiracy theorist, here is your conspiracy - it was meant to mess up the next President.

To me it was just a big accounting trick and we are going to be kicked with it and that was how it was designed. The 2011 budget will be another shocker because someone is going to make sure at least some of those tax breaks continue into 2011 - otherwise Congress better just get ready to retire.

So why is not the President and the Congress fixing these hang-over things from previous - was that not what their electors expected as part of `the change?'

Originally Posted by Silverbird

.....To me it was just a big accounting trick and we are going to be kicked with it and that was how it was designed. The 2011 budget will be another shocker because someone is going to make sure at least some of those tax breaks continue into 2011 - otherwise Congress better just get ready to retire.

Accounting Trick = Bad Accounting Practice

As long as lawmakers can make laws on accounting, there will always be tricks. The problem with our government is that the checks and balances of a three divisioned architecture still doesn't have a proper audit function. The supreme court should not allow any accounting laws be validated FROM the house and senate. That IS the fox watching the hen house.

Accounting laws should be reduced to credits and debits. Take out deferments, writeoffs, deductions. I know you're thinking flat tax, but what is wrong with that?

10% - of 10,000
10% - of 100,000
10% - of 1,000,000

The U.S. citizen determines their altitude. Then they know the tax level facing them.

I don't get it! I see it as Black & White!

Originally Posted by Silverbird

Ok...this is because those tax breaks under the former Administration are going away in 2011??? So why are you blaming Obama, the Congress under the Bush Admin wrote it that way so they could play Creative Accounting.

Well -- your message deserves a hug and a kiss

During the second Bush Term I honestly tried to keep up with the Debt and many of the 'hidden' Financial Things going on. For those who went out of their way to keep up - the information was there.

Over and Over -- the Creative Accounting was addressed and there was absolutely no way anyone could avoid seeing that the 'next' administration would have to deal with it.

I'm not saying Obama doesn't have his faults -- but the overwhelming expectations and all the more the greviences constantly lodged against him way more reflect the ongoing damage from the previous years than what Obama himself is even slightly respondsible for.

Anyway --- thank you !!

Actually, if the change is to move to responsible accounting, that means let the tax breaks expire - because that's how the accounts record it should be done. I get the feeling that's not what people *think* change should be, but there is a difference between astronomy and astrology, if you know what I mean.

Change does not mean more creative accounting. Instead, we get to see how much we *really* are in the hole.

However, for those of you who don't want the "Change" back to pre-Bush to happen, fear not, certain people in Congress do not want to be lynched (in a figurative way) and instead we will just kick the defict up again. And one can hope, with the push toward showing the real numbers, they won't put an artificial end date on the breaks and we can see the real glory fun of what this does if if goes on forever. But I am not hopeful there won't be another "endit" date just so the numbers don't go bezerk 10+ years from now.

SilverBird, Steady,

FY2007:

Revenue: $2,567,671
Expenditures: $2,730,505
Deficit: $161,527

FY2008:

Revenue: $2,523,642
Expenditures: $2,978,440 (+9.08%)
Deficit: $454,798

FY2009:

Revenue: $2,104,613
Expenditures: $3,521,734 (+18.24%)
Deficit: $1,417,121

As of FY2009 I don't think you can directly correlate the revenue drop to either President Bush or President Obama. It was a market cycle. Also, some of the government spending can be attributed to an economic theory (Keynesianism) – so that is somewhat expected and maybe necessary. As of the FY2009 midterm review (January 2009) – the last spending controlled by President Bush - the budgeted FY2009 expenditure was $3,133,2003. That would have resulted in a growth of Federal expenditures by +10.51%.

But, the actual expenditure growth in FY2009 was over 18%??? That is spending bloat.

Also, note that the final pre-Great Recession year deficit (FY2007) was $161 Billion. Given something other than the ‘Great Recession’ we would have gone to surplus in FY2008. That implies that if we reign in spending and keep the tax code unchanged we will be in surplus almost as soon as the recession ends. Additionally, that surplus will grow dramatically each year spending is held in check.

On the other hand, if Liberals keep threatening tax and regulation changes, folks and businesses will continue to adjust to those threats. Here is a simple example: If taxes on dividends revert to the pre-2003 level (income tax rate vs. capital gains tax rate) than investors will NOT want dividends and companies will NOT distribute dividends. Dividends are distributed with corporate after-tax profits. Thus, corporations will move numbers around and not show as much in taxable profits. That will reduce Federal revenue. It will also entice investors and businesses to seek ways of increasing stock price. Can we say ENRON and Global Crossing accounting gimmicks?

Everyone, the Administration included, claims the recession is over. FY2010 should be a normal recovery year. The stock market leads main street. The stock market corrected from a stupid crash and leveled off at -28%. My guess is that the economy will adjust similarly over the next few months. Now, it is President Obama and the Liberal Congress that define the framework of our economy. If neither the market nor the economy as a whole grow at a sustainable rate (see other recoveries) than one can presume that framework changes are having a detrimental effect. If the growth is statistically more vibrant than one can presume that framework changes are having a beneficial effect. We can look at Federal tax revenue as a proxy. The revenue growth from FY2003 (September 2002 – September 2003) to FY2004 was 5.44%. That was pre-Bush tax code modification – but folks were beginning to expect change and adjust to projected change. The revenue growth from FY2004 to FY2005 was 14.63%. The revenue growth so far from FY2009 to FY2010 has been -13.15%. That does not bode well. Folks (you and me and businesses) are moving numbers around in an effort to adjust to the new framework.

My money is on the bet that the President Obama/Congress economic framework (projected and actual) will result in a miserable Federal revenue growth rate This stuff is easy to predict. Fish in a barrel.

This bet can be claimed 2010/10/13 when the FY2010 Monthly Treasury Statement is posted. For those who are looking here is the future link

Any takers!!!

Page Not Found

Originally Posted by KevinD

Page Not Found

KevinD,

That page will not be found till the second Thursday of October 2010.

Kindof talking smack... Very subtle though, eh...

The main site is: Monthly Treasury Statement

The super top secret is to notice the URL of a specific MTS monthly report. The final portion of the URL is a date in the format of mtsMMYY.pdf. For example, the most recent MTS report is for November 2009. Thus, the URL is:

http://fms.treas.gov/mts/mts1109.pdf.

If you want to grab a crystal ball and see the September 2010 report it will be at:

http://fms.treas.gov/mts/mts0910.pdf.

and, will be posted by the second Wednesday of the month.

This Wednesday we will get the honor of viewing the December 2008 report.