Obama No Tax Increase on less than 250K Pledge

2010 is where the rubber meets the road for Obama and the democrats in Congress. After whining about Bush and the last president’s failures. (There were many but I just think they are different than the democrats but that is different story).

Since Obama and the democrat congress have already broken his 250K Pledge it will be interesting how far they go in raising taxes on the middle and low income people of America.
I am not talking about the VAT or CAP and Tax bills that will be discussed the rest of this year.
If Congress does nothing in 2010 the Bush tax cuts on the rich (as the democrats and media portray the tax cuts) of 2001 and 2003 expire.

Here is a sample of the tax code changes which are already in place (Jan 1,2010) or will occur Jan 1, 2011 if Obama, Pelosi and Reid do nothing. It is quite a list of tax increases on the rich.

Starting in 2010

State and Local Sales Tax Deduction
The opportunity for itemizers to choose to deduct their state sales tax payments instead of deducting their state and local income taxes ends after 2009, unless Congress extends it.
Educators’ Deduction
This deduction for classroom supplies purchased by educators lapses after 2009, unless Congress extends it.
Nontaxable Combat Pay Allowed for Earned Income Tax Credit (EITC)
The election to include nontaxable combat pay in the calculation of earned income for the Earned Income Tax Credit is not available after 2009, unless Congress extends it.
Tuition and Fees Deduction
The deduction for up to $4,000 of college tuition and fees expires after 2009, unless Congress extends it.
Additional Standard Deduction for Property Taxes
Starting in 2010, non-itemizers will no longer be allowed to increase their standard deduction by up to $1,000 of property taxes paid, unless Congress extends this break.
Exemptions for the Alternative Minimum Tax
For 2010, the exemption levels drop to $45,000 for married filing jointly, $33,750 for singles and heads of household, and $22,500 for married couples filing separately. Congress, can, however, act in 2010 to extend the relief that was available in 2009.
Partial Exclusion for Unemployment Benefits
For 2010, the first $2,400 of unemployment benefits you receive is no longer tax-free.

Starting in 2011
Higher Tax Rates
Beginning in 2011, tax rates that were in effect prior to 2001 return. The top income tax rate goes back to 39.6 percent, and the special low 10 percent bracket is eliminated.
Increase in Capital Gains and Dividend Tax Rates
The tax rate reductions for long-term capital gains and dividends is scheduled to expire this year.
* In 2011, the maximum long-term capital gains tax rate goes back up to 20 percent from 15 percent. A lower 10 percent tax rate is used by individuals who are in the 15 percent tax bracket. Their long-term capital gains had been tax-free since 2008.
* In 2011, dividend income (other than capital gain distributions from mutual funds) is taxed as ordinary income at your highest marginal tax rate.
Child Tax Credit
The credit of $1,000 per eligible child reverts to $500 after 2010. After 2010, none of the child tax credit will be refundable to taxpayers unless their earned income is more than $12,550.
Tax Credit for College Tuition
The Hope credit is again limited to the first two years of college and is capped at $1,800. None of the credit is refundable if it is more than your regular income tax liability.
Earned Income Tax Credit (EITC)
Temporary increases in the Earned Income Tax Credit for filers with three or more children and the higher income levels for the phaseout of the credit are repealed.
Mortgage Insurance Premiums
The special itemized deduction for mortgage insurance premiums paid on mortgages taken out after 2006 expires on Dec. 31, 2010.

I am sure some who read this will think this is from some radical, right wing, GOP funded entity who is putting out this false propaganda.

And the source is TURBOTAX. Yes none other than the makers of the tax paying program which out current treasury secretary would not use to fill out his taxes honestly but still is the chief enforcer of tax code in America today.

GM & Chrysler Bankruptcy

G.M., Leaking Cash, Faces Bigger Chance of Bankruptcy

Even after receiving $15.4 billion in federal loans, General Motors is once again on the brink of financial collapse.

The automaker’s first-quarter earnings released Thursday showed that G.M. was losing more money and sales than it was in late December, when the government began its bailout…………..

This is occurring as Chrysler is in Bankruptcy

Chrysler Files to Seek Bankruptcy Protection

President Obama forced Chrysler into federal bankruptcy protection on Thursday so it could pursue a lifesaving alliance with the Italian automaker Fiat, in yet another extraordinary intervention into private industry by the federal government.
Flanked by his automobile task force of cabinet secretaries and business advisers in the White House’s grand entranceway, Mr. Obama announced a plan that would allow the United Automobile Workers, through their retirement plan, to take control of Chrysler, with Fiat and the United States as junior partners. The government would lend about $8 billion more to the company, on top of the $4 billion it had already provided……

If this is the good things that comes out of companies being to big to fail and then being supported by a federal government which is to big to fail.

This just proves that the US federal government is to bg and needs to be dismantled and let the states try to run things since the feds have screwed things up so badly.

AIG – Flush! More money down toilet

Glad to see that Obama is proving the conservatives right in that Bush was not a conservative by continuing the failed policies of bailing out the big guys who have made bad decisions. The We have to destroy the free market to save it. concept.

US takes another crack at AIG rescue

As bad as this sounds from HSBC HSBC cuts 6,100 jobs it sounds like it is the right decision for that company to insulate itself from the poor decisions of other multinational banks and governments.

Market drops again as the Federal Government Grows more Socialist

The problem with the economy today is that the government is to heavily involved.

This is not an Anti-Democrat concept, it is an anti-big central government, reduction of capitalism and personnel liberty issue.

Bush was a failure when it comes to financial policies his entire 2 terms as I stated previously: Why republicans lost in 2006 and 2008 and George W Bush, The 1st American Socialist President.

Here is a very timely editorial at IDB, Is It Any Wonder The Market Continues To Sink?.

Last Oct. 13, in trying to explain why the market had sold off 30% in six weeks, we acknowledged that the freeze-up of the financial system was a big concern. But we cited three other factors as well:

• The imminent election of “the most anti-capitalist politician ever nominated by a major party.”

• The possibility of “a filibuster-proof Congress led by politicians who are almost as liberal.”

• A “media establishment dedicated to the implementation of a liberal agenda, and the smothering of dissent wherever it arises.”

No wonder, we said then, that panic had set in.

Today, as the market continues to sell off and we plumb 12-year lows, we wish we had a different explanation.
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Someone needs to stop saying that everything is a crisis and then go off with a little information and make bad decisions. I want a president who will make rational decisions in times of crisis and not appear overwhelmed. Americans are in deep trouble as spending continues to dramatically outpace any economic growth.

Money managers can see this, you can’t spend trillions of dollars more than exist and expect everything to be OK in the long run.

Today’s drop I think is directly related to the comments about cutting the deficit in half by 2013 that came out today. The market looks at this and says why does the progress on deficit reduction always occur after the current president is no longer on office or at the beginning of the second term. The press announcements are wrong and shows how stupid the present administration and media thinks Americans are.

By the president’s account, the administration inherited a $1.3 trillion deficit for the current fiscal year from the Bush administration – that’s the figure Obama says he’ll cut in half – and the stimulus law, coupled with rescue efforts for ailing automakers, the financial industry and beleaguered homeowners will raise this year’s red ink to $1.5 trillion.

He is saying that it is going to take 4 years to get to a $650 billion dollar debt. If that is a linear decrease for the annual debt, the total debt will be increase by [1.3 Tril – 1/4 650 bil + 1.3-1/2 of 650bil +1.3 trill – 3/4 of $650 billion + 650 billion] = (1.13 Tril + 0.975 Tril + 0.813 tril + 0.650 Tril)= $3.65 trillion more will be added to the national debt during the Obama Administration. That is adding >33% of the current national debt after 232 years. Just think of that America is going to be 35.6% more in debt in 2013 than when George W Bush left office. This is why the financial geniuses on Wall street are saying business will not have profits or anything of value in the foreseeable future.

Oh for the days of the responsible Bush administration financial policies, those where the days of efficient, inexpensive federal government (sarcasm intended) when the debt only went up by $1.54 trillion dollars in 6 years. Obama will have that passed before the mid-term elections in 2010. Wow, that is change which will result in everyone being prosperous.

Economy – Flushing down the toilet

Started surfing a little at lunch time today and I think we are watching the collapse of America state by state as to much government spending runs themselves out of money and finally some are taking a stance over to much government.

California about to implode and Kansas not able to pay its bills as the Dow drops 3+% again today.

As the stock market looks to the future it sees nothing but failure and losses. Since Obama was elected the Dow has gone down over 2000 points. If the market felt there was hope in the next year or two the market would be flat to rising despite the reports of what has occurred in the past.

As Obama’s reverend stated, America’s Chickens have come home to roost. We are reaping the rewards of government excesses of the last 50-70 years as the bills are coming due. People and businesses have followed the government’s example, living above one’s means for the last 20+ years.

Evolution it reality, even for humans, the heard needs to be thinned, the weak do not survive and are taken by the predators. The correction is inevitable and necessary for survival of the species. Evolution and nature are cruel. It is the reality of life.

US Government spending will bankrupt the world

The US federal government is in the process of bankrupting the world as accounting practices that the federal government does not allow private companies to use are used to hide the real government debt. This cuts across party lines and the end of liberty and personnel freedom in the world.

The total economic of the world based on the ponzi scheme known as government spending is close (if not already beyond) the tipping point. Paper currency will be virtually worthless since the governments that print them have no possible way to back their value.

Government spending is the problem and drastic government spending cuts (real cuts not decreasing the rate of increase) of 50 to 90+% in some cases are required.

Federal obligations exceed world GDP, Does $65.5 trillion terrify anyone yet?

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the “2008 Financial Report of the United States Government” as released by the U.S. Department of Treasury
…………

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“The federal government is bankrupt,” Williams told WND. “In a post-Enron world, if the federal government were a corporation such as General Motors, the president and senior Treasury officers would be in federal penitentiary.”

Assuming 330 million Americans, 65.6 trillion debt is equal to $198,484 per American. This is on top of any state, local or personnel debt.

If you want to really understand the what the future holds and the consequences read the A Citizen’s Guide published by the treasury department.
It would be nice if government would live by this motto in the report.

Using the government accounting methods that if any private business used, the CEO, CFO and board of directors would be in jail, here are some tables from the report on future predictions.

These projects do not take into account the money spent since Oct 1, 2008. TARP and the new stimulus plan are on top of this staggering debt.

Americans need to hold our employees the elected government officials responsible. New blood is needed.

Thoughts on 1st Obama Press Conference

I did not want to write what I was thinking during the press conference because I wanted to think about the questions and answers taken in their entirety instead of one piece at a time. I also did not watch any of the pundits analysis of the press conference.

My impression of the Obama answers to the questions:

1) I will negotiate with Iran who has leaders that publicly espouses that America needs to be destroyed because it is the great Satan.

2) I will not negotiate with Republicans who believe that government is not the total solution to America’s issues and that private business is at fault for all that is wrong with America.

3) I will talk about partisanship and blame the republicans for not agreeing with me and praising me since I agreed to listen to their ideas. I will not mention that the democratic leadership of the congress totally ignores the republican ideas for which I am bragging about listening.

4) If I do not get what I want America will be a catastrophe and anyone who disagrees is ignorant.

5) I will not look into the camera as I answer the questions giving the impression that I am above the common man since I do not need to look them in the eye. I also will tilt my head to one side while responding to questions which is a body language sign for begin uncomfortable and lying.

6) Republicans and the Bush administration are totally at fault for everything that is wrong in America and I am the savior who will right their wrongs.

7) Even though 0% down and interest only mortgages caused this crisis in the short term more of this needs to be done and in the future sometime we will fix the problems caused by the short term fixes.

8 ) Even though Social Security (entitlements) will be paying out more than is collected on a monthly basis is 6 to 7 years I am going to ignore that since I think any crisis is 10 to 20 years away.

9) Elimination of the current health care industry is a necessity and being rebuilt as I see fit it required for America to go forward.

I tried very hard to find something positive from the press conference. I wish I could have found something positive but the body language, repeating of campaign talking points and failure to look at the camera (the American people) while talking leads me to believe that Obama is hiding his true beliefs or he is lying.

Why is Obama Changing who runs the 2010 Census?

It seems strange that Obama is putting a White House political operative who is not required by law to report to congress or make public the method that the census will use to count people public record.

I wonder how many democratic congress people will demand that Obama’s political appointees make the trip to capital hill to testify before congress under a congressional subpoena like they did for the Bush political appointees or will the Obama administration claim executive privilege just like Bush did and was widely criticized for this.

White House grabs 2010 census power

Time for wait and see but the potential for conflicts of interest, falsifying records and corruption due to a lack of openness is far to possible.

Politics as usual.

Republicans need to do more of this

Jindal Says Republicans Can Only Blame Themselves for Loss

SPRINGDALE, Ark. — Louisiana Gov. Bobby Jindal said Saturday that the Republicans only had themselves to blame for losing control of Congress and the White House.

“The country fired us from our congressional majority in 2006. Why? The country didn’t stop being conservative. The Republican Party did,” Jindal told a gathering of Arkansas Republicans. “We became what we came to Washington to change — the party of earmarks and government spending. The party needs to stop worrying about what to do to fix itself. Let’s worry more about fixing our country. Then the party will fix itself.”

Jindal also discussed his push to put a new set of ethics rules in place in Louisiana — a state where he said “half of it is under water and the other half is under indictment.”

“Hundreds of members of state boards and commissions resigned in protest,” he said. “That was fine with me. I knew they could be replaced by people who’d work for free and wouldn’t mind having everyone know what they were doing.”

Jindal, 37, spoke to a crowd of 660 people at the Washington County Lincoln Day dinner Saturday night, an event attended by U.S. Rep. John Boozman, former Arkansas gubernatorial candidate Asa Hutchinson and several state legislators. On his trip to Arkansas, Jindal also visited the Bentonville headquarters of Wal-Mart Stores Inc. to thank the world’s largest retailer for its help after Louisiana’s four hurricanes since 2005.

Friday, Jindal attended a private fundraiser in Fayetteville. His previous fundraising travels have taken him to Texas, North Carolina, Mississippi, Florida and Connecticut.

Jindal, a former member of the House, has strong support from conservatives for his income tax-cutting initiatives and is an early favorite among many Republicans for the 2012 presidential election. Many of them advocated for John McCain to pick Jindal as his vice presidential running mate.

I could not agree more with this statement.
The country fired us from our congressional majority in 2006. Why? The country didn’t stop being conservative. The Republican Party did

This is why the Washington centric republican party is falling apart. A lack of leadership, the party has been to much of a liberal-lite party.

America at a crossroad, freedom vs socialism

The historical American way of life is at a crossroad. For the last 80 years there has been a slowly chipping away of Americans freedom by the federal government. The pretense is that the American government will make your life easier by limiting the lows of life with “safety nets”. With each safety net that has been installed by the federal government more regulations have been imposed using the sentiment that it is for the betterment of all. This has resulted in an America where success and the successful has been demonized, failure must be backstopped by the federal government and group think politics.

Group politics treats nobody is an individual, each person is part of a group classified by some characteristic (race, religion, sexuality, age, rich,poor, middle class). Based on this it generates conflict between the groups and each group wants to curry favors from the elected officials in exchange for support.

This group classification is a form of prejudice. Because someone is in a certain group they must have these beliefs. The individual has been lost to the collective.

This has culminated in an America where demonizing America and individual liberties while pretending to be defend America and individuals liberty is how politicians do their job. Trading one groups freedoms for a different groups liberty based on group think.

I am saddened by how much “hatred and fear” exists in America today. Both the republican and democrat parties claim the others use scare tactics to convince people that what the party currently in power is doing is just scare tactics and they are lying to you and nothing changes.

For the last 8 years all that has been said is how Evil Bush is and he is using the fear of terrorism to get elected and how is domestic policies are terrible for America. The federal government is not spending enough on some project and how some many people are hurt by the governments inaction. If Bush was a democrat, his growing of the federal government would have been lauded as being enlightened, the federal government grew by 50% under Bush in dollars being spent and taxes collected grew by 25%. The republican party and some conservatives supported him out of blind party loyalty.

During the 90s, Bill Clinton did some horrendous things to embarrass America and he was support by the democratic party loyalists and he could do no wrong.

Now the same people have flip flopped again everything Obama does is terrible by republicans and everything he does is great by democrats. This politics just disgusts me and is just tearing the fabric of America apart. The republicans are saying that Obama and the democrats are using fear about the economy to get what they want in the stimulus plan and there is not very much value it the plan. These are the same politicians who voted for the TARP plan 4 months ago.

Bush did play to fear some and Obama is playing to the fear now with the rhetoric about how bad the economy is and will be if the government does not do something.

Historically Americans have always joined together in times of crisis, Americans still do this but the political leaders start tearing the “opposition” down very shortly after the crisis starts which results in people arguing with each of over very silly topics based on nothing other than what some politician or talking head on TV says is important. I find myself getting caught up in this at times.

Americans historically have been knocked down but previous generations have picked themselves up off the ground, bushed themselves off and looked around and said to themselves, what can I do to make my life, my families life and my neighbors life better.

I see to many Americans today get knocked down and complain someone trampled on my rights and wait for some government help they stand back up. We are in hard economic times but there are still opportunities for one to be a success. The key is to look into one’s heart, think what can I do to help myself and my fellow man, not what can I expect government to do for me.

Fundamentally America has done more for the advancements of mankind in our short 230 year history than at any other society. This is due to individuals ideas, freedom to try new things and for lots of inventions that have succeeded and lots of attempted inventions which have failed miserably.

Just look at this map of the world and life expectancy from Wikipedia. The areas with the most democratic forms of government for the longest time have the longest life expectancy. This alone should prove to people that freedom from government oppression is better for mankind.

The free exchange of ideas and respecting other opinions that are different than one’s own is a corner stone of America. Just because someone has a differing opinion on some topic does not make that person evil.

In order for the human experiment called the American Representative Republic to continue to succeed and result in the prospering of mankind on the planet earth people must be allowed to fail. I know this initially sounds totally contradictory. How can America succeed if people fail. The reasoning is sound and true if it is allowed to be expressed and not criticized before explanation is interrupted.

GOP Rep. Jeb Hensarling on TARP last year.
“In my heart and in my mind, I believe that this plan is fraught with unintended consequences, would force generations of taxpayers to pick up the tab for Wall Street losses, and could permanently and fundamentally change the role of government in the American free enterprise system. Once the government socializes losses, it will soon socialize profits. If we lose our ability to fail, we will soon lose our ability to succeed. If we bail out risky behavior, we will soon see even riskier behavior. ”

Think hard about the phrase If we lose our ability to fail, we will soon lose our ability to succeed. Failure breeds success, America promises opportunity and the pursuit of happiness not a guarantee of happiness. America will not survive and all of mankind will suffer if America continues on the current path of protecting failures and limiting success.