Thread: Tax Mythbuster Speaks Out

Originally Posted by nnuut

"Poor People Create Jobs".

You have officially been declared a disturber of the peace...

Originally Posted by RealMoneyIssues

You have officially been declared a disturber of the peace...

Thanks, I just thought that if I agreed it would promote peace and tranquility.

CEO of BBT spent some time on CNBC this morning. He discussed a "poll" he had taken himself of hundreds of small business owners by engaging them in brief discussions. (He did not mention the 3 CEOs of NGOs who appeared on MSNBC for the above referenced "all CEOs" quote.)

From his informal "poll" he said most said their businesses were doing well because they had reduced their costs to match the demand. When hiring more workers was raised all expressed a view that they would not risk one dime to expand their businesses while Washington continued both its drive for more regulation and its attitude toward business.

So, from the above thread we need to implement Plan B and get the poor off food stamps, AFDC, TANF, Medicaid, etc. so they can go hire a cleaning person.

I think we need an area with just a little more leeway that's not on the belt way talk page. And instead of closing threads all the time just remove the offending post. Keeping it clean on members pages sure, but the lounge and other pages near it should be loosened up abit.

I think I am going to Borg this thread.

WarrenLM asked me to demonstrate how I will adjust to either/both Governor Moonbeam's (Brown) and President Obama's proposed tax increased. How could I possibly ZERO OUT their gubmint mandated contribution to their spending priorities? And, the corollary, how the heck did I do it when the Terminator jacked me a couple of years ago? Well here goes:

First of all, I will take this opportunity to remove myself from the Top 1% or 2%. While I am doing fine in my TSP account I live in a condo, own a Civic, and commute to work from the cheap seats in San Diego (about 20 miles). No downtown penthouse suite and Bimmer for me - however that time will come... My family's marginal tax bracket for the Feds is 25% and for the State is 8% (second highest bracket in my fine broke state).

So, let us assume that Moonbeam gazes on the obviously wealthy plutocrat families earning more than $76K taxable in his State of the Golden Goose. He wants just 2% more from folks who can easily pay more toward the 'Sorta Quick Train from Modesto to Eureka' (or whatever) that He desires. Now we get to the math. I'll split the difference to the next bracket and say $10K is taxed at 8%. That marginal tax in the top bracket is $800 now and will be $1000. So, I have to Zero Out $200 for Moonbeam's Choo Choo Fund. All I need to do is contribute $2,500 more to my TSP account - that is, about $95 per pay period. It will cost me $62 in take home pay. I can do that!!! Kinda dumb because I already have a nice nest egg. But I can become a rather rich senior citizen with a Bimmer, a Merc, a Lincoln, and a nice McMansion. Thanks Brownie.

Now, how hard will it be to Zero out the income tax changes presented by TaxAggeddon. My families marginal tax rate will increase from a 25% steal to a modest 28%. Using the same assumption this means that $16K is taxed currently at 25% for a tax of $4K. To pay for investment opportunities in Solyndra that tax take will increase to $4,480 for a Zero Out goal of $480. All I need to do is contribute $1,700 more to my TSP account - that is, about $66 per pay period. It will cost me $42 in take home pay.

The absolute beauty of this is that both tax grabs can be dealt with concurrently. When the Terminator jacked me I did the above for State (and included computations for the sales tax increase as well) and got to within a penny. Thus, no change in my State income tax:toung:. As a very nice secondary benefit I also withheld quite a bit more from the Feds as well. A double bonus. Let us play again!!!

And, concurrently, I reduced my debt load quite a bit. I have more cash flow. I can and will put it into tax advantaged vehicles just for spite. I will not support the growth of bloat. By that I mean the $700 Billion per year structural spending bloat at the Federal level and the constant garbage promoted by the State.

'Let them eat cake!!!'

P.S.: The above does not take into account 'The Marriage Penalty'. That will jack me and most of the folks on this site. There will be no recovery. We will be stuck paying thousands more to the Feds for families with two wage earners. It would be very ugly - but taking thousands out of the economy will definitely boost the private sector. Yea, that will do it...

No, Taxes don't effect jobs.
ObamaCare Causes Indiana Manufacturer to Cancel Expansion: More Jobs Gone

July 28, 2012 By tlmertz
By Judson Berger
(FoxNews.com) An Indiana-based medical equipment manufacturer says it’s scrapping plans to open five new plants in the coming years because of a looming tax tied to President Obama’s health care overhaul law.
Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years. [more]
ObamaCare Causes Indiana Manufacturer to Cancel Expansion: More Jobs Gone | Tracy's Right

Another thought.

Let us say that Moonbeam gazes my way and demands his $200 - resulting in me moving $2,600 more into my TSP account (amongst the millions that will surely do so). Also, let us postulate that President Obama seeks to draw down spending by $700 Billion (the actual structural increase in spending) rather than pulling money out of the private sector via tax increases (by the way, the $70 Billion in tax increases for the rich will not cover the $700 Billion in structural spending increases - just saying...).

What will Governor Moonbeam of Kalefornea cost the Federal Government?

ZEROING OUT Governor Brown's tax increase will result in decreasing the Federal tax revenue by $625. I don't really want to do that - the current code is fair. But, you gotta do what you gotta do!!!

To All,

The proposed tax increase on the Top 2% will generate about $70 Billion per year if the rich do not adjust their finances to remediate against the increase. Thus, the $70 Billion is a best case scenario. Here is a Federal Revenue/Spending/Deficit chart from FY1996 through June of FY2012 (There are three months left in FY2012 with a best deficit estimate of -$1.2 Trillion):

20120729_FederalDeficitChart.JPG

I could not even freehand the affect of an additional $70 Billion in revenue. The FY1998 surplus was actually $70 Billion - see the green bar for how much that affects things...

The only way to resolve this mess is to cut spending to FY2007 inflation adjusted, and then initiate a wide band tax increase till we close the gap. The tax increase is necessary because we absolutely have to pay for the recent largess. However, I will not freely accept a tax increase unless it is something everyone pays into (no credits and no write-offs) and only after I see real and substantial cuts. I have not seen ANY real and substantial cuts.

And, I can watch you

I say let's wipe the income tax and all it's loopholes. Nothing comes out of your pay until you transact. Then you will pay. I don't care if that's called a fair or a flat tax. But it dang well better be fair and flat for everyone. Talk about diversity and inclusion? All pay just the same. Trustfunders, politickians, lords of commerce, the illusory middle class, pimps and h'os, all the same.

Buy a yacht? You pay. Buy a car? You pay. Buy a coke and a double fat burger? You pay. Condoms and thongs? You pay too. Droopy drawers? Yep, you pay. Widen the base, nobody escapes. Same for all.

And raise prices immediately, acoss the board to cover it. That way there is no hiding the theft of labor/wealth. No crap? You mean my nachos now cost $5 instead of $2.50? Maybe i've lost my appetite. Want to buy some crack? Of course we won't tax you on that, but when your dealer buys new bling he's gonna pay. Which ensures you will too.

Tax consumption. Go ahead have all you want. Just pay for it. Bonus is that saving and frugality are rewarded. How middle class.

" The tax rates should be raised on all the slugs that are too lazy toi do an honest days work."

Dude, that's the whole problem. If they don't do an honest days work they don't have any money to pay taxes. Luckily they don't need any money because everything is free. Courtesy of the taxpayers. Don't you see?

Originally Posted by Birchtree

" The tax rates should be raised on all the slugs that are too lazy toi do an honest days work."