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alstry (35.35)

The MOTHER of All Problems!!!! ZOMBULATION

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June 07, 2009 – Comments (6)

As we know, the top 20% of income earners pay OVER 80% of the taxes........the bottom 50% pay basically no taxes.

And many of those higher income earners paid taxes as a direct result of the credit bubble and now most have seen their incomes decline materially or evaporate and are left with HUGE DEBT including mortages and high property taxes. 

We are certain this problem is very serious and dramatic because tax receipts to the Federal Government are DOWN 44% through April.  If we imposed the deficit on the highest income earners in America who pay most of the taxes anyway....the top 20%......it would be about $200K per family simply to cover the deficit....for what its worth...the top 20% don't make $200K....so if we applied it to the top 10% of income earners........it would be $400K per family......and most of the top 10% don't make $400K........and if we applied it to the top 5%.........it would be $800K per family...which again is too much.....so the solution is simple.....let's tax the top 1% of income earners $1.6 Million per family and all should be fine.......for this year only.

The evidence bears out the middle class and higher income wage losses.....we have seen millions of higher paying construction jobs simply vanish, hundreds of thousands of Auto jobs....especially the Auto Dealers who paid a boat load of taxes, we have seen Airline workers wages cut 30-50% if you factor benefits, Real Estate and Finance Sales people who routinely made six figures are out of work or earning much less, Shopping Center and Commercial Real Estate Owners are facing tough times, Developers too......Tens of thousands of Wall Street Toxic Debt workers....Millions of Small Business Owners.......Eight million unemployed and 10 million part time workers who want to work full time....

Much of this process has been masked by a stable stock market and a media that pushes the same BS green shoots everyday.

Ultimately, the truth is the truth and it will eventually be known.......

It is not the poor being Zombulated in America.....they are doing just fine as long as the checks keep coming in.......it is the middle class and higher income earners......the people that pay taxes.......and now millions of ADDITIONAL unemployed are collecting checks while not paying taxes....the stress on the system is enormous.

So think about this....if the 20% responsible for 80% of the tax receipts are not paying taxes...or nearly as much taxes....and the remaining 30% responsible for the final 20% of receipts can't pay as much either......we have a serious problem....

There is simply NOT enough revenues coming in anymore to cover the MASSIVE and GROWING deficit....unless you start taxing the ASSETS of the American Citizens and not just the income....or you stop making payments to the poor who have no income alternatives.

As we are ZOMBULATING THE MIDDLE CLASS AND RICH IN AMERICA through business closures, job losses, wage cuts, and higher taxes...............in the not too distant future.....there will not be many qualified to pay taxes and we will be forced to tax everything they have because no forigner will want to finance a declining Welfare State when they have their own problems at home.

Now we havn't even addressed the impact of rising costs as we continue to devalue the dollar.  Think about an environment where costs are rising and incomes crashing......

Welecome to Zombie Nation.....we must find a positive solution soon or there will be no solutions left....just do the math....it is very simple.

We are simply out of money.......We need change!!!!!

6 Comments – Post Your Own

#1) On June 07, 2009 at 10:53 AM, jgseattle (34.40) wrote:

"As we know, the top 20% of income earners pay OVER 80% of the taxes........the bottom 50% pay basically no taxes."

I get sick and tired of hearing this false statement.  This ONLY applies to federal income taxes. 

If you look at all  taxes as a PERCENTAGE OF INCOME lower income earners pay a HIGHER PERCENTAGE of their income in taxes.

How is this.  Think about sales taxes, property taxes, state income taxes, and any other none federal income tax.

In statistics if you look at both ends of the curve you can usually find a lot of very interesting facts and a good statistician can make these facts sing.  The republicans have made this fact sing and is there montra.

The tax system is still not a progressive system when you consider all taxes, tax loopholes, and other advantages built into the system for the wealthy.  The tax system is regressive, lower income poeple pay MORE taxes as a PERCENTAGE of income than the wealthy.

Go to Washington state department of revenue web site and look at the revenue spreadsheet they have for taxes.  (I have not been there for a while but look around and you will see an analysis of the tax structure in Washington in percentages and then talk to me) 

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#2) On June 07, 2009 at 1:29 PM, Donnernv (< 20) wrote:

jgseattle:

Try reading my blog.  I think some things are cleared up there.  The bottom 50% do pay a high percentage of their income in taxes.  But the flip side is that they receive benefits that are greater than the taxes they pay.

And that ratio is nearly 2:1, by the way.

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#3) On June 07, 2009 at 1:37 PM, awallejr (83.83) wrote:

"........the bottom 50% pay basically no taxes."

This point really does tick me off as being totally misleading.  Kudlow and his guests were ranting about this as well.  People completely ignore all the tolls, and excise taxes and surcharges and sales taxes that almost everyone winds up paying.

Buy a product, pay a tax.  Make a phonecall, pay a tax. Watch cable, pay a tax.  Buy gasoline, pay a tax.  Use a road or cross a bridge, pay a tax.  Buy or sell a home, pay a tax.  Buy cigarettes, pay a tax.  Etc., etc.

 

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#4) On June 07, 2009 at 2:00 PM, alstry (35.35) wrote:

You guys are all missing the point......

First....this is not a fairness issue.....This is where Donner and I part ways a bit....but I have little doubt in the near future we will come together and actually be friends.....I wouldn't be surprised if we actually go out for a drink together....but that is a seperate issue for now.

So do people at the bottom pay their FAIR share of taxes....ABSOLUTELY!!!!!

But in terms of Actual Dollars coming into government.....the top 20% bring in about 80% of all DOLLARS.....again this is not a fairness issue.......and you must understand that point.

If the top 20% are not paying taxes......the government is not bringing in revenues to pay for Welfare, Social Security, Medicaid, Defense, Education, our Park System etc.......

Keep the fairness argument on the side for a moment......the question now as Amercians is that our middle class and rich.....who generate HUGE amounts of tax dollars are simply not making the money they did a few years ago......

ONE SIMPLE QUESTION.....How does a nation with a $6.5 trillon dollar governmental budget operate when the revenues coming in are approaching half that amount......

A $3 Trillion dollar deficit is a lot of money......an amount that America has never even come close to on an absolute or relative basis.....especially when we had this much debt outstanding......about $40,000 for every family in America.......or if we remove the bottom 80% of families that can't afford that bill..........about $200,000 per family for just one year!!!!!!!!!!!!!!!!!!!!!!!!!!

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#5) On June 07, 2009 at 2:04 PM, jddubya (52.61) wrote:

Why would zombulation be the mother of all problems??????  Isn't zombulation the eventual path to redemption?

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#6) On June 07, 2009 at 2:34 PM, jgseattle (34.40) wrote:

Don,

Poor states can claim the same thing with federal money.  WV for example has Sen. Bird funneling more pork back to WV than any other state.  They get almost 2-1 on every dollar sent to the feds.

The idea is that as a PERCENTAGE you pay the same.  Once this is established we can argue the point of who benefits the most.

Alstry -

I did take this off subject a little, sorry.  I agree with your main point of where will the money to pay this back come from.  I think the USD will have to be inflated to allow for the repayment of the debt.

This will be ugly and could result in your predictions coming true for inflationary reasons instead of delfationary reasons. The bottom line is everyone has to look at what is happening and decide how they think things can "work out." 

I do not see any easy solutions to the current public debt problem and I think it will lead to higher interest rates and that may cause some deflationary.  (think affordability)  That is unless interest rates cannot prevent the inflation in which case the dollar is worthless and a loaf a bread costs $100.  (that is not a prediciton just a worst case)

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