Monday, March 15, 2010

$500 to $600 Per Month That LOWER Middle Class Families Will Pay

For a short while this morning an in-depth story was on www.yahoo.com before it was yanked that exposed the cost of health care to those who will have to pay for the cost of the program. A lower middle class family (husband and wife) making $66,000 per year will be required to pay $6,600 per year to the government to pay for the Obama health care program. That is over and above rising personal taxes that the government is now requiring American Tax Payers to pay. All current taxes and health care taxes will bring at a minimum a full 50% tax at the beginning on each family in America. As socialist health care costs increase due to the unionization of the industry by Obama's friends in the Unions during the years that will follow, the 50% tax burden on each family will not begin to cover the costs. Nationalization of American industry will then begin to cover "health care".

Monday, January 18, 2010

Per Diem Deductions: Another Way Congress Stealthily Raises 2010 Taxes on Workers


I was helping a business last night with their year end W2's when I went to the IRS on-line website to look at the specifics regarding Per Diem and 1099 rules. Last year, employees could deduct meals, hotel stays, mileage, etc., while working over 50 miles from home and staying at hotels during an out of town job. One of the expense deductions is the amount the employee can deduct per mile. In 2009 that deduction was 55 cents a mile. The amount an employee can deduct per mile in 2010 is now only 50 cents per mile. In other words, the amount workers can deduct for mileage when doing out of town work for a company is 10% less. That is a big drop. Obama and the Democrats wasted no time last year in changing the tax laws, making it harder for you to deduct work expenses so that they can tax more of your income.

Tuesday, January 12, 2010

Congress Raises 2010 Taxes Substantially

Congress Tinkers with Withholding Tax Tables for 2010
by SusanAnne Hiller

Recently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:

NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.

DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.

After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.



The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.

Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases. Here are some of the “highlights” of the new 2010 withholding tables:


1.) Congress has lowered the threshold to capture more wages that qualify to owe taxes–across the board. For example, in 2009 the withholding tax threshold began at weekly single wage levels of $138. In 2010, that same wage is lowered to $116. In short, instead of the taxable wage starting at $138, it is now down to $116–which changes the income threshold and taxes even poorer Americans.

For married couples, the change in the weekly base taxable wage changes from $303 in 2009 down to $264 in 2010. These lower wage thresholds can be seen throughout the new withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semiannual, and annual, as well as daily and miscellaneous pay periods.

This across-the-board reduction in the initial wage threshold increases the number of wage earners who would have to pay taxes.

2.) Instead of seven (7) wage categories, there are now nine (9) wage categories. The new structure allows for direct taxation on the middle class with these wages broken out into smaller categories. The direct hit on the middle class withholding taxes can be seen on all of the new tables. Additionally, the IRS could not explain these changes.

Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances

Not over $276: $0 in taxes
Over $276 – $400: 10% payroll tax
Over $400 – $1,392: $12.40 plus 15% of excess over $400
Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
$14,423: pays $4,162.17 plus 35% of excess over $14,423

Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances

Not over $233: $0 in taxes
Over $233 – $401: 10% payroll tax
Over $401 – $1,387: $16.80 plus 15% of excess over $401
Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
$14,450: pays $4,169.99 plus 35% of excess over $14,450

These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.

Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?

Maybe there is a good explanation for the increase in the withholding taxes from 2009 through 2010, but I remain skeptical, because inherently, Democrats do not have the capacity to reduce taxes and typically make up the revenue somehow.

Get your calculators out and you do the math. Go here for 2009; start on page 4. Go here for 2010; start on page 39.

And you should remember this and the fact that House and Senate Republicans united against the stimulus bill, which may have been the trigger to all of this. And Obama and Congress should remember this from December 21, 2009:

After years of irresponsibility, we are once again taking responsibility for every dollar we spend the same way families do. It’s true that what I’ve described today will not be enough to get us out of our fiscal mess by itself. We face a deficit that will take some tough decisions in the next year’s budget and in years to come to get under control. But these changes will save the American people billions of dollars. And they’ll help to put in place a government that’s more efficient and effective, that wastes less money on no-bid contracts, that’s cutting bureaucracy and harnessing technology, that’s more fiscally responsible and that better serve the American taxpayer.”

~President Obama

Responsibility. Really?

Sunday, December 27, 2009

Don't Cry For Me America



From Doug Ross @ Journal

In the early 20th century, Argentina was one of the richest countries in the world. While Great Britain's maritime power and its far-flung empire had propelled it to a dominant position among the world's industrialized nations, only the United States challenged Argentina for the position of the world's second-most powerful economy.


It was blessed with abundant agriculture, vast swaths of rich farmland laced with navigable rivers and an accessible port system. Its level of industrialization was higher than many European countries: railroads, automobiles and telephones were commonplace.


In 1916, a new president was elected. Hipólito Irigoyen had formed a party called The Radicals under the banner of "fundamental change" with an appeal to the middle class.


Among Irigoyen's changes: mandatory pension insurance, mandatory health insurance, and support for low-income housing construction to stimulate the economy. Put simply, the state assumed economic control of a vast swath of the country's operations and began assessing new payroll taxes to fund its efforts.

With an increasing flow of funds into these entitlement programs, the government's payouts soon became overly generous. Before long its outlays surpassed the value of the taxpayers' contributions. Put simply, it quickly became under-funded, much like the United States' Social Security and Medicare programs.


The death knell for the Argentine economy, however, came with the election of Juan Perón. Perón had a fascist and corporatist upbringing; he and his charismatic wife aimed their populist rhetoric at the nation's rich.


This targeted group "swiftly expanded to cover most of the propertied middle classes, who became an enemy to be defeated and humiliated."


Under Perón, the size of government bureaucracies exploded through massive programs of social spending and by encouraging the growth of labor unions.



High taxes and economic mismanagement took their inevitable toll even after Perón had been driven from office. But his populist rhetoric and "contempt for economic realities" lived on. Argentina's federal government continued to spend far beyond its means.


Hyperinflation exploded in 1989, the final stage of a process characterized by "industrial protectionism, redistribution of income based on increased wages, and growing state intervention in the economy..."


The Argentinian government's practice of printing money to pay off its public debts had crushed the economy. Inflation hit 3000%, reminiscent of the Weimar Republic. Food riots were rampant; stores were looted; the country descended into chaos.


And by 1994, Argentina's public pensions -- the equivalent of Social Security -- had imploded. The payroll tax had increased from 5% to 26%, but it wasn't enough. In addition, Argentina had implemented a value-added tax (VAT), new income taxes, a personal tax on wealth, and additional revenues based upon the sale of public enterprises. These crushed the private sector, further damaging the economy.


A government-controlled "privatization" effort to rescue seniors' pensions was attempted. But, by 2001, those funds had also been raided by the government, the monies replaced by Argentina's defaulted government bonds.


By 2002, "...government fiscal irresponsibility... induced a national economic crisis as severe as America's Great Depression."


* * *



In 1902 Argentina was one of the world's richest countries. Little more than a hundred years later, it is poverty-stricken, struggling to meet its debt obligations amidst a drought.


We've seen this movie before. The Democrats' populist plans can't possibly work, because government bankrupts everything it touches. History teaches us that ObamaCare and unfunded entitlement programs will be utter, complete disasters.

Today's Democrats are guilty of more than stupidity; they are enslaving future generations to poverty and misery. And they will be long gone when it all implodes. They will be as cold and dead as Juan Perón when the piper must ultimately be paid.

Thursday, December 17, 2009

Create US Financial Crisis, Then Implement Socialism



Today it was reported Barak Obama stated that without "Government Health Care" the U.S. would go bankrupt. This year, the President and the Democrats have added more debt than Bush did in 8 years. It is now clear the strategy the President and the Democrats have in order to implement Socialism in America for the first time in American history. That strategy is to create a major financial crisis for the United States and then to "capitalize" on that crisis to implement Socialist policies as a "solution" to that crisis. As they have stated before, a crisis is an opportunity for "change".

It is up to the American People to put the word out to stop the railroading of the future of this Democracy before it is too late. Too late for us and too late for our future generations if there is to be hope for Democracy to survive. The American people MUST wake up!

Thursday, November 12, 2009

Obama Dumping Illegal Alliens From Other States Into Texas - 28,000 Per year



The alliens are let out onto the middle of the Presidio Bridge by the US Federal government. They know that they could die in the Chihuahua desert. The Obama Federal Government knows that. They know these people will return into the U.S., which is exactly what the Democrats in government want.


Find more videos like this on Mywesttexas Chatter


The Obama administration is in the process of dumping 28,000 people at the Presidio, Texas bridge and saying, either go into the Chiuahua Desert on the Mexican side, knowing they will have only one decision. To return into the US or die in that desert. The Presidio School Official notified the governors office that the US Government informed them that they must get ready for a huge influx of illegal allien children. The Democrats, in order to try to gain power and then to hold power, knew that they had to let people from other countries to come in and over ride the votes of American citizens, because the people from other countries could come in and expect treasonous politicians to literally hand over the hard earned wealth the American people built to these alliens through over taxation and resdistribution of wealth. These politicians who are now in power are working to implement the same strategy in a red state, Texas, that has proven so successful for them throughout the United States in recent years.

Monday, October 12, 2009

The Aggressive Socialization of America


Some point to the party. Others point to government officials. Many point to the media. But the real problem in my opinion is the people of America in general. They have enjoyed the great success of a Constitution, interpreted and applied as a way of life. The people have now become dependant on the institutions of the Constitution, but no longer understand the document or spirit of the document as the foundation of America's success.

Due to the success of recent Administrations such as that of Ronald Reagan, and those that followed, this generation grew up sheltered, protected, fed, and dependent on a good government. They then consider government to be all good, no longer believing that a federal Amercan government can possibly be bad. They no longer consider that the principles that the government in America has been governed by for so many years has anything to do with anything. The people feel now that the government can do no wrong, that it will always be there to benefit them, no matter who occupies the offices of the government. So the people become complacent, uneducated in world history, ignorant to what can happen to their lives when government is occupied by the wrong people. There in lies the opportunity for anyone to go in and openly promise a CHANGE. No questions asked, no serious scrutiny applied by this generation of people of America.

This generation of people clearly believe that any and all change will make things better. This generation has never known severe economic hardship, or cannot even believe it is a possibility. Those who wish to take over their lives and prosper from tyrannical control are openly given the keys to the doors of those offices in the name of CHANGE. And then comes the opening of Pandora’s box. Once there, these officials will change everything to insure that they will never have to give up those keys to power, through any means necessary. Even through changing the Constitution or abolishing it all together. They certainly will not abide by it for this Constitution is an anti-thesis to their survival. Then the lives of this generation becomes a life of suffering, and the generations that follow suffer as well. The people become the servants of the state. Protests result in nothing. Harsh sentences are handed out to dissidents. Open expression of opposing views are criminalized. A great, prosperous nation of people is gone forever. That is the path this nation is going down with this generation of the people of America at this very moment.