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Varchild2008 (84.64)

Just Tax the out of them

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6

August 29, 2010 – Comments (7) | RELATED TICKERS: APOG

On DAILY KOS today we have an article written by Mark Summer called "Terminators."  It is an interesting read but scroll down to the end and you read:

"In a period that may be surprisingly short, all of what we consider traditional "service" work may tumble down into the single digit land of agriculture. 80% of us will be doing... something else.

Whatever that something is, just remember: don't kill the mill owners. That won't help anybody.  Just tax the (censored) out of them."

The Gist of the article is much like reading ALSTRY about the next new AGE being the DIGITAL AGE and much of what employs us today is going away tomorrow.

But that is just the cause of the advancement of invention and technological achievements.  That has nothing to do with tax policy causing the next new age to occur.  

Nothing in Mark's article has anything to do with the cause/effect of tax policy.  So why he launches into "Just Tax the out of them" is beyond me.

We could do that.... In fact let's try that...  Let's raise taxes sky high on Business Owners... Mark calls them "MILL OWNERS" to imply that I guess he wants tax hikes especially raised on businesses he thinks are going to be obsolete in the future.   At least that is what I get from that.

So....  What does that mean?

Let's raise taxes on (RIMM)  because  (APPL) and (GOOG) are making RIMM Obsolete.

Let's raise taxes on (BBI) Blockbuster since NETFLIX & RED BOX  has made that company obsolete awhile ago.

Let's raise taxes sky high on (WEN)  since (THI) and (MCD) and (SBUX) are making that company obsolete.

Let's raise taxes on BORDERS and BARNES & NOBLE since the E-BOOK readers are making that business obsolete... 

Let's raise taxes sky high on (HOTT) since selling music CDs is getting obsolete by iTUNES and ZUNE.

Let's Raise taxes so all of these companies can just go away.... fall under bankruptcy.....

We don't need any of these companies cause Mark Summer says so.... Mark wants to bring on the new DIGITAL AGE as quickly as possible and the best way to do that is to destroy the businesses he deems as "MILL OWNERS" .... I.E.  Obsolete!

So..... In your portfolio.... Given that the Bush Tax Cuts will expire and the Mark Summers of the world are marching around with Pitchforks ready to burn C.E.O.s  in Effigy  (Don't you just love the Liberal Ideology...FUN !?).... You might want to check to see if you are invested in the DIGITAL AGE........ Or if your portfolio is chock full of MILL OWNERS.

MILL OWNER possible example stocks for MARK SUMMER to Destroy with TAXATION

1)  NINTENDO  -        Obsoleted by..... MSFT and SONY which are jumping on board the Motion Detection bandwagon with superior technology... MSFT promises full body interaction with games.

2)  SNDK  -    Obsoleted by whomever owns  3PAR..... DELL or HP  would make monstrous competitors to Sandisk's storage capacity business.....  3PAR is built on using CLOUD Computing power to store data which is expected to obsolete hardware storage like external harddrives or jump drives or etc.

3)  Chrysler - Fiat  -   Let's face it.. Chrysler is a loss making business without FLEET Sales....GM and FORD are cleaning up the market share.

4)  FIZZ -   Obsoleted by (KO) and (PEP) and (DPS) and (HANS)  owning the top brands in every category of non-alcoholic beverages.  With KO and PEP now owning their North American bottlers, what will happen to FIZZ's business?

5)  APOG -  Obsoleted by....(don't laugh).....  SOUTHWALL TECHNOLOGIES?  (SWTX)  .... Producing Glass / Window products that are selling like hot cakes as they are designed to limit the heat that enters a room so you cut down on air conditioning expenses.

See isn't this fun?

Let's all VOW today to be Liberals and to support Daily Kos from this point forward so we can ensure the destruction through taxation of 80% of our economy that we feel is made up of EVIL, ROTTEN, WHO CARES..... "Mill Owners" whose businesses are going to go way anyhow....so may as well speed them along to their demise right?

Mark further sates,

"It may be that we must surrender or reform some of our most cherish ideals to fit a new age"

hmm... Right.... Sounds like a plan...  Let's totally abandon our ideals....So as to further along the destruction of the American economy through sky high taxation.

Mark Continues....
"Taxation. While goverments have been miserable at halting technological advance (and we really shouldn't hope they get better), one thing they can do is implement tax policies that try to smash the massive surge in disparity that's generated by increasing productivity. The United States did this successfully at the height of the industrial period, putting in tax rates up to 90%. "

Bravo!  Bravo!   Mark is exactly right!!!!!!  Yippe!!!!     Disregard that high taxation existed during the Great Depression which more than likely kept the depression going for as long as it did.

Never mind that America was in a Nasty Recession in the mid 1960s.... And we did not get out of it until John F. Kennedy lowered the Top Marginal Tax Rate to 70%.

We got into another nasty recession in the 1970s.....  And did not get out of that one until Top Marginal Rates were drastiaclly lowered under Ronald Reagon...

Look at the GREAT DEPRESSION chart in Wikipedia:

"The top marginal tax rate was reduced to 58% in 1922, to 25% in 1925 (Calvin Coolidge), and finally to 24% in 1929. In 1932 the top marginal tax rate was increased to 63% (Herbert Hoover) during the GREAT DEPRESSION"

Wow!!!!  What a fantastic analysis from MARK SUMMERS.....  Boy is he dead on correct folks?  It wasn't until Tax Rates sky rocketed to 63% that the Great Depression went from a Recession to a Depression.

Contrary to popular belief...  The Great Depression did not instantly become  Depression.  It was a recession that got bigger and bigger as Herbert Hoover grew the size of Federal Government, Increased Regulations and eventually Sky Rocketed the Income Tax.... but don't forget Smoot Hawley Tarrif....   A lot of Governmental Overreach occured before we ever had a Great Depression emerge from a Recessionary period.... (Kinda sounds like today doesn't it?)

I mean... Isn't  Mark Summers an absolute genius or am I just being stupid here?

7 Comments – Post Your Own

#1) On August 29, 2010 at 6:05 PM, outoffocus (23.59) wrote:

I'm sensing a bit of sarcasm here...

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#2) On August 29, 2010 at 6:35 PM, Varchild2008 (84.64) wrote:

I'm just tired of reading all of these writers on Daily Kos that constantly make obvious analysis mistakes.

The biggest analysis mistake and the most common one to make is to analyze America's economy in terms of a single factor.

The Hindenberg Omen is similar..... It uses a limited number of factors with a limited set of data points and tries to predict a stock market collapse.   The author of this has a hideous track record in predicting anything.

And so.... Anyone would have a hideous track record trying to analyze something off of 1 factor or a small number of factors.

Have to look at the big picture.  Mark Summers never discusses the Industrial Age in terms of the Size of Government.

One can get away with raising taxes on the Top Marginal Rate and still have a sensational economy if at the same time you shrink the size of Government, limit the amount of Regulations, and create tremendous confidence and certainty in the market place.

The 1990s reflect a lot of factors....  But you have to realize...

TAXES are not the end all be all.....  It is Governmental Size/Scope/Regulations that is the real TRUMP card.

Conservatives and Liberals are both supremely guilty in not realizing this.   So Conservatives automatically think tax hikes are bad and Liberals automatically think tax cuts are bad.

The real PROBLEM is GOVERNEMENT too big and out of control and getting its hands dirty in too many pies in our economy.

People do not realize what is really going on behind the scenes....  The Fisherman are protesting over Governmental Regulations/Seizure of their businesses.... By way of attempting to make em all Government Employees...

The Fisheries are suffering because of it...... Government doesn't care.....  Government just does what it pleases itself.

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#3) On August 29, 2010 at 8:57 PM, guiron (< 20) wrote:

Why are you dragging an article from Kos over here? Why don't you comment on the site, where the author will see it?

Disregard that high taxation existed during the Great Depression which more than likely kept the depression going for as long as it did.

The top tax bracket remained high throughout the '50s, too. I notice you don't bring up the times when we weren't in economic turmoil, when the top tax bracket was much higher. It's exceedingly low right now, and all I hear is about the deficit. You can't get rid of it simply by cutting spending. Even Reagan had the guts to raise taxes several times, because back then it wasn't a religious issue like it is today.

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#4) On August 29, 2010 at 8:59 PM, guiron (< 20) wrote:

BTW, we have low taxes in the US, and we still had a crash. It doesn't make problems go away, but it does make our deficit quite large.

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#5) On August 29, 2010 at 9:27 PM, Varchild2008 (84.64) wrote:

"Why are you dragging an article from Kos over here? Why don't you comment on the site, where the author will see it?"

Show me a staunch conservative that regularly comments on any of the articles on Daily Kos.   Cause I can not find one after reading through several several several comment threads on Daily Kos over several years.

There's something you need to realize and that is that Daily Kos is a Liberal oriented, Democratic Strategy web site.

They FORBID anyone like me to post comments.

They want NOTHING to do with me.

For a great example just look at Paul Krugman's website.
Paul Krugman allowed for 6 months for Conservatives to post counter arguments, well sourced arguments, against his economic ideas.

That lasted for just 6 months.. Paul Krugman then banned Conservatives entirely by banning any ability for them to post counter arguments.   He did things like limit posts to basically 2 inches of text.

What happens on Daily Kos is counter arguments get shut out of the front page and anyone that reads Daily Kos immediately reports a "Conservative" to the Managers of the Web site.... Who then ban the Conservative... Revoking that person's account.

I happen to have an Account with Daily Kos right now and I am not going to jeopardize my account by actually saying something over there.

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#6) On August 29, 2010 at 9:32 PM, Varchild2008 (84.64) wrote:

quiron wrote,

"BTW, we have low taxes in the US, and we still had a crash. It doesn't make problems go away, but it does make our deficit quite large."

And I suppose raising taxes on businesses some how makes our deficit reduced? 

wrong.

Our Defict and Budget Debt fell for years under President Bush after the Tax Cuts were in place. 

The recession we have has everything to do with Governmental overreach into the Housing, Mortgages.... By legislating that Fannie Mae and Freddie Mac be set up to create / buy mortgages from people who can not pay them back.

Legislation was set up in Mid 1990s which was the Housing Reinvestment Act that told Banks to offer Mortgages to those who can not pay them back.

That is what raises a deficit.

Go back to Calvin Coolidge... He kept taxes real low... With a much lower Top Marginal Rate that we have today....

And guess what?  His entire tenure as President he oversaw an INCREASE in economic activity... The economy got better and there was no deficit!

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#7) On August 29, 2010 at 9:46 PM, Varchild2008 (84.64) wrote:

Quiron wrote,

 "The top tax bracket remained high throughout the '50s, too. I notice you don't bring up the times when we weren't in economic turmoil, when the top tax bracket was much higher. "

WOW!

You do not know President Dwight D. Eisenhower do you?

Tell you what.... There is your homework....

Go read about President Dwight D. Eisenhower.  

Maybe I'll write about President Dwigth D. Eisenhower and the 1950s economy to explain what really went on.

But....  In the meantime you can see from wikipedia that the 1st and TOP maginal rates throughout the 1950s were below, sometimes significantly below, where they were in 1944- 1945.

They went to 92% once...  The closest time they ever got to the 94% rate in 1944-1945.

But the truth is as I said in my post above.  You have to look at much more than just the Tax situation. 

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