100% Income Tax or 100,000,000 American Lives
August 08, 2009
– Comments (13)
We hear everywhere the recession has ended......but you never hear the rest the story. We hear how Alstry called a hard top at 8300... but you never hear how Alstry said any hard top call has a 10% margin of error putting Alstry just a few points outside of the top call range.
But let's get back to probably one of the most serious issues facing America...EVER!!!
Please verify the following numbers for yourself, but I think you will find them within acceptable deltas for the sake of ease of presentation.
In 2009, America expected to generate approximately $1 Trillion dollars from personal income taxes. It also expected another $1 Trillion from social security and other payroll taxes.
America thought it would spend $2 Trillion dollars this year on Social Security, Medicare, Medicaid, Unemployment, and Interest on the national debt.
http://en.wikipedia.org/wiki/2009_United_States_federal_budget
When the above estimates were made, the deficit was expected to come in around $600 Billion as unemployment was capped 8%......now we know the defict is much closer to $2 Trillion (just Federal deficit) and the key reason is revenues to government is evaporating with a dramatically slowing economy.
The numbers could hardly be more stark: Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression, while the federal deficit balloons to a record $1.8 trillion.
Other figures in an Associated Press analysis underscore the recession's impact: Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.
The last time the government's revenues were this bleak, the year was 1932 in the midst of the Depression.
"Our tax system is already inadequate to support the promises our government has made," said Eugene Steuerle, a former Treasury Department official in the Reagan administration who is now vice president of the Peter G. Peterson Foundation.
http://finance.yahoo.com/news/AP-ENTERPRISE-Federal-tax-apf-2967547650.html?x=0
Strange isn't it? The recession is over yet our nations income is inadequate to support MOST OF government spending?....something is very wrong when a nation's leadership fails to confront a massive problem and inform the public it serves. Politicians are public servents, aren't they?
ARE THEY AFRAID TO TELL US WE CAN'T AFFORD THEIR SALARIES AS THEY GIVE THEIR INSOLVENT BANKER BUDDIES BILLIONS WHILE HARD WORKING AMERICANS GET KICKED OUT OF THE JOBS AND HOMES?
Our income is BEYOND INADEQUATE, at current spend levels, America can't fund social security, medicare, medicaid, welfare/food stamps, unemployment and interest expenses.....basically, the funds that over 100,000,000(one hundred million) people depend on to live....especially if you include those that service this segment of the population including milllions of physicians, pharmacists, and health aid workers.
Based on current income tax receipts, we would have to triple income taxes simply to cover the above....or a marginal tax rate of OVER 100% for those taxpayers that pay most of America's income taxes.
Obama, Geithner, and Bernanke are well aware of this problem. And the problem has NEVER been anything like this because government has NEVER been anything close to this large....just a few years ago, total government spend was OVER $3 Trillion dollar LESS than it is today.
$3 Trillion dollars is more than the TOTAL current tax receipts of the Federal Government!
If we simply killed off the above 100,000,000 million people, it would save about $2 Trillion and basically cover just the Federal deficit. But by killing that many people and cutting spending by so much, our GDP would likely immediately contract by about 20%(offset by a temporary surge in funeral spending) and put our nation in a massive depression.
Can anyone explain what the heck is going on here? Here is the really scary part... if Benny the B and Timmy the G simply try to print money to fraudulently cover these massive deficits/expenses, we might as well convert our nation's currency into toilet paper as no one in the world will accept it for trade.
It is hard to tell what is going on, but every time I see Bernanke speak, he looks very nervous. What do you think the man who told us subprime was contained is now concealing from us? What about Timmy the G and his recent cursing crusades? Do those faces look like people you can trust?
Now when are those mandatory flu shots coming out?
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