“I can make a firm pledge: Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”
- – Then Senator Barack Obama, September 12, 2008
According to GOP.gov:
Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.
In February 2010, 5.02 million homes were sold, according to the National Association of Realtors. On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property, can push middle-income families over the $250,000 threshold and slam them with a new tax they can’t afford.
This ObamaCare tax is the first time the government will apply a 3.8 percent tax on unearned income. This tax on home sales, unearned income and other Medicare taxes raise taxes more than $210 billion to pay for ObamaCare. The National Association of Realtors called this new Medicare tax on unearned income “destructive” and “ill-advised” and warned it would hurt job creation.
No thanks! I’ll keep my guns, my God and my money. You can keep “The Change”.
OK… I can’t take credit for this. Credit goes to Wayne Allyn Root – The Washington Times 6:17 p.m., Monday, April 4, 2011 MugshotIllustration. Wayne Allyn Root is a former Libertarian vice-presidential nominee and author of “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold, Gambling & Tax Cuts” (Wiley, 2009). He writes at RootforAmerica.com.
Socialist Obama by Alexander Hunter for The Washington Times: “I ought to know. I was Mr. Obama’s college classmate at Columbia University Class of ’83. Our college was dominated by socialists and Marxists who hated capitalism and America.” Let’s look at the facts up close and personal – Jeff Foxworthy style. Mr. Foxworthy leaves no doubt as to “who might be a redneck.” Let me leave no doubt that “Obama might be a socialist.”
It’s time to stand up and loudly call a socialist… a socialist!
Of course, that’s just One Man’s View. YMMV, and you’re welcome to comment here.]]>
I ran into a friend at the market last night, who also happens to be my CPA. Brian was picking up groceries for dinner with his 84 year old father, a Tuesday night ritual for them. Brian invited me to join them for some liquid refreshment, snacks and conversation. Even though I had already dined (my wife is off visiting my daughter for a few days), I really enjoy sitting down with him and solving the world’s problems over a glass or 3 of wine (or a fine Scotch) so I agreed to join them.
The conversation eventually turned to the current State of the U.S., as it usually does.
We were discussing the National Debt, when I made mention that “a little debt is healthy”. Brian was quick to remind me of my many comments that the Government needs to be run like a non-profit corporation, asking “How can a non-profit corporation ever hope to pay off any debt when its goal is to have no profits with which to pay it?” This was an excellent point, and one which bears more discussion at another time.
By now you’re probably asking “What does this have to do with the Tea Party?”. Well, I have been thinking a lot about the Tea Party of late… mostly about where they’re headed in terms of influencing our political process. Brian and I also discussed where they fit in the overall political spectrum, and how they could be most effective… and how they might self-destruct. I spent some time floating around their web site, and came across their Mission Statement:
The impetus for the Tea Party movement is excessive government spending and taxation. Our mission is to attract, educate, organize, and mobilize our fellow citizens to secure public policy consistent with our three core values of Fiscal Responsibility, Constitutionally Limited Government and Free Markets.
While their Mission is laudable, I think those who are highly active in the movement need to reach a consensus on how they plan on making their mission successful. That said, here are some of my thoughts… which will probably prove highly unpopular to a LOT of people:
A lot to chew on? Absolutely! However, if the Tea Party can reach a general, national consensus on the 8 items I listed above, they will be a force to be reckoned with forevermore. Of course, these 8 items aren’t all that need to be done to fix what’s wrong with our political processes today… but they’ll go a long way toward it.
Of course, this is just One Man’s View. As always, your comments are most welcome.]]>
In the first article of this series I made mention of the need for Government to be run more like a business. I’m going to expand that discussion here. I meant to get to this sooner, but I kind of went out in the weeds over the Health Care debacle.
In order for what I’m about to say to make sense to those without financial backgrounds, a brief lesson in financial accounting is necessary. This is the stuff you’d learn in Basic Financial Accounting 101 in college. If you already have this background, you can skip down to the more detailed discussion.
There are two (2) basic financial statements: The Balance Sheet and the Income Statement, also known as the Profit & Loss or P&L. We’ll discuss the Balance Sheet first.
In creating a balance sheet, there is one simple equation: Assets = Liabilities + Equity.
Assets are typically broken down into Cash, Receivables (short and long term), physical items such as inventory and property, and investments. These aren’t all, but they’ll work for this discussion.
Liabilities can generally be considered as Debt (short and long term) in one form or another.
Equity is what’s left over when you subtract Liabilities from Assets.
Using your home as an example, is it’s worth $200,000 (Asset Value) and you owe $100,000 (Liability), you have $100,000 in Equity.
The Income Statement’s equation is simply Revenue – Expenses = Profit.
The Balance Sheet and Income Statements are generally used to determine a company’s or individual’s financial health. Almost every time you complete a credit application, you’re required to provide this information in terms of your monthly income and expenses, plus list what your assets are, and how much, if anything, you owe on them. Some of this information is used to determine your FICO Score, but that’s another topic.
There are a number of ratios used to determine a firm’s performance and financial situation. The ones we’re most concerned with are:
We’ll apply these to our nation’s current financial statements later, so you can see how we’re doing. When interpreting the Financials, remember, YOU are the shareholder… the investor in the business. You buy company stock every time you pay a tax on anything to the Federal Government. Congress is the Board of Directors. The Cabinet and President are the Corporate Officers. The Board makes policy and the Officers carry out the policy (ignoring for the moment the President’s Veto power).]]>