by | ECONOMY, FREEDOM, POLITICS, TAXES
From an article in the Washington Post:
The net worth of the American family has fallen to its lowest level in two decades, according to government data released Monday, driven by a more than 40 percent drop in their stakes in their homes.
The Federal Reserve’s detailed survey of consumer finances showed families’ median wealth plunged from $126,400 in 2007 to $77,300 in 2010 — a 39 percent decline. That put them on par with median wealth in 1992.
The Fed’s data underscore the depth of the wounds of the Great Recession and how far many families remain from healing. The median value of Americans’ debt did not change between 2007 and 2010. Meanwhile, the housing market crash inflicted particularly severe damage, with the Fed showing that the median value of Americans’ equity in their homes plunged 42.3 percent between 2007 and 2010.
The survey is conducted every three years, and this report offers one of the most exhaustive looks to date at the greatest economic upheaval in a generation. Although there have been some signs that the recovery has picked up steam — housing prices have begun to stabilize and unemployment has fallen — Fed economists said those improvements largely do not change the survey results.
“Recovery from the so-called Great Recession has also been particularly slow,” the Fed said in its report.
And yet, spending has increased at a greater rate than has even been seen in the history of this country. Spending, on the backs of the taxpayer. No wonder we are poorer. We are shouldering a staggering amount of federal debt.
by | ARTICLES, FREEDOM, NEW YORK, TAXES
CNSnews reported this week that a study by the Tax Foundation found a net loss of 1.3 million New Yorkers who left the state over the 10 year period from 2000-2010.
3.4 million total moved out of state, but another 2.1 moved in, so the change was -1.3 million — which totaled a loss of $45.6 billion in income.
Although many factors determine one’s decision to move to or from a locality, taxes are typically part of the process. As such, the Tax Foundation noted many high tax facts that are unique to New York:
According to the group, New York ranked second among the states for the highest state and local tax burden in 2009. The Empire State was ranked highest for tax burden every year from 1977 until 2006, except in 1984 when it was ranked second.
New York State has a progressive personal income tax rate ranging from 6.45 percent to 8.82 percent for those earning over $2 million. Sales varies by county, and is between seven and eight percent. In Manhattan, the sales tax is 8.875 percent.
According to the Retirement Living Center, which examines tax burdens by state for those nearing retirement, New York also levies a gasoline tax at 49.0 cents per gallon and a cigarette tax of $4.35 per pack, along with an additional $1.50 per pack in New York City.
New York is also one of 17 states plus the District of Columbia that collects an estate tax, with a $1 million exemption and a progressive rate from 0.8 percent to 16 percent.
In 2007, New York State collected $1.1 billion from its estate and gift taxes, the highest of any of the states, according to the Tax Foundation.
I have mentioned these points before. Back in 2009, Rush Limbaugh fled the state due to the crushing taxes. And an Op-Ed in the NY Post last year discussed the implications of a shrinking population — loss of revenue, House of Representative seats, and policy power.
High taxes have devastating consequences. Thomas Sowell once quipped, “Elections should be held on April 16th- the day after we pay our income taxes. That is one of the few things that might discourage politicians from being big spenders”.
by | FREEDOM, HYPOCRISY, POLITICS, TAXES
The Southern Poverty Law Center (SPLC) claims to only deal with “hatred of people based on class characteristics,”. So when Charles Cooke of National Review Online decided to inquire if the SPLC would be the watchdog it claims to be and follow and investigate a group of Occupy-affiliated men who planned to blow up a bridge, he was told they would not.
When Mr. Cooke asked for further clarification, he was told the following: 1) “We’re not really set up to cover the extreme Left”, and 2) We only ever cover left-wing groups when they have a right-wing component . . .for example, “when anarchist groups are infiltrated by those on the right; Neo-Nazis, that sort of thing.”
At least they were open about their flagrant bias.
by | ARTICLES, ECONOMY, FREEDOM, HYPOCRISY, OBAMA
This little gem came out today during the daily White House press briefing. Real Clear Politics is reporting that Ed Henry pressed Jay Carney about Obama’s vote in 2005 where he supported a bill which contained more than $2 billion in oil subsidies. This is one for which he didn’t vote “present”; he voted “yes”. Click here for the amusing video exchange.
Henry: Why did the President vote for the energy bill in 2005 as a Senator that had over $2 billion in tax breaks for the oil industry? They were making a lot of money then too.
Carney: What I can tell you Ed is that the oil and gas companies in this country are making record profits, now, in 2012. The price at the pump is very high and that is plenty of incentive for these companies to continue drill, to continue to explore, to continue to develop energy sources here in the United States and abroad. There is no reason for the American taxpayer to subsidize that activity.
Henry: So why’d he vote for it?
Carney: I haven’t examined the vote, or what the prices were at the time, or the whole bill it was attached to. What I know and what the President knows is that this year, 2012, when we are seeing high prices at the pump, high prices in the international oil markets and high profits for the oil and gas companies, there is no reason to continue these kinds of subsidies. Take that argument to the people, I don’t think they’ll go along with it.
In previous writings, I’ve noted how politicians decry oil’s “record-profits” — but coincidentally forget to mention how much money the oil companies have invested just to earn said profits.
Interestingly, just today, the Senate only reached 51 (out of 60) votes on a measure that would have ended the subsidies. The vote was 51-47. Even the Democrats don’t want to end them. They’d rather to pander to their base by “regulating” oil profits (H.R. 3784) by imposing a profit “windfall tax”.
I can’t wait (and wait and wait) to hear President Obama’s explanation on his 2005 vote….
by | ARTICLES, ECONOMY, FREEDOM, OBAMA, POLITICS
As I have written here before, the President has been able to effectively pass laws which Congress has not passed through the use of the Executive Order and his government agencies. The Environmental Protection Agency (EPA) seems to be one of his most popular. For instance, limitations on emissions were passed as a set of rules by the EPA, implementing almost the entirety of the cap-and-trade bill which failed in the Congress. Now the EPA strikes again!
According to the WSJ today, the EPA has finalized the
long-awaited rules to limit carbon-dioxide emissions from new power plants that will effectively block the construction of new coal-burning plants and make natural gas even more attractive as a fuel for generating electricity.
New power plants have a emissions limitation of 1,000 pounds of CO2 per megawatt-hour of electricity produced. This affects new coal plants because they must be fitted with special equipment which catches the emissions and stores them. The cost to do so is extremely expensive, and a pilot program has shown it is not economically viable.
AEP pulled the plug last summer on a high-profile pilot program to capture emissions from one of its plants in West Virginia because the utility couldn’t recover the costs of the program from its customers.
These unnecessary regulations could spell the end of coal-burning plants, which admittedly, is a goal of the Obama administration. Obama is pushing natural gas as an alternative fuel for generating electricity. The demise of the coal industry, however, would be a huge loss of income and jobs for many states, something Obama fails to mention. Apparently, excessive regulations trump the economy. Glad we have the EPA to help us along!
by | ARTICLES, CONSTITUTION, FREEDOM, OBAMA, OBAMACARE, POLITICS, TAXES
On this two year anniversary of ObamaCare, we must remember a greater anniversary, the sage words spoken 237 years ago today.
It is in vain, sir, to extenuate the matter. Gentlemen may cry, Peace, Peace– but there is no peace. The war is actually begun! The next gale that sweeps from the north will bring to our ears the clash of resounding arms! Our brethren are already in the field! Why stand we here idle? What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!
This begs the question. If ObamaCare was such a monumental piece of legislation as the White House claims, why no mention in the news today?
by | FREEDOM, GOVERNMENT, POLITICS
This morning, Rasmussen released the results of its latest poll regarding the Texas Voter ID law blocked by the Department of Justice on Monday. 56% polled opposed the DoJ ruling. However, even more disturbing than the ruling was another item in the report:
… the United Nations is now investigating the fairness of such laws in Texas and other states. But voters in this country still overwhelmingly support voter ID laws and don’t think they discriminate.
The United Nations investigating our laws? Indeed. It turns out that several members of the NAACP have gone to a UN meeting in Geneva to present their case to the Human Rights Council
The United Nations Human Rights Council is investigating the issue of American election laws at its gathering on minority rights in Geneva, Switzerland.. This, despite the fact that some members of the council have only in the past several years allowed women to vote, and one member, Saudi Arabia, still bars women from the voting booth completely.
Officials from the NAACP are presenting their case against U.S. voter ID laws, arguing to the international diplomats that the requirements disenfranchise voters and suppress the minority vote.
Of course, the UN has no jurisdiction over our laws, and the NAACP admitted as such. Additionally, the Supreme Court upheld a Voter ID law in 2008 by rejecting the challenge presented to SCOTUS.
This line of events opening the door to the United Nations injecting themselves into American laws is a slippery slope we don’t want to go down. Since it has time to focus on the US, this must mean that the United Nations has already done its job in Haiti, Iran, and other places that are working on fair and free elections as well….
This revelation also makes my post yesterday about Sharpton, Meet the Press, Blackburn, and the DoJ ruling even more interesting.
by | ARTICLES, ECONOMY, FREEDOM, TAXES
The Heritage Foundation just released its 2012 Index of Economic Freedom. The United States is ranked….10.
Top 10 Countries
SEE ALL RANKINGS
For over a decade, The Wall Street Journal and The Heritage Foundation, Washington’s preeminent think tank, have tracked the march of economic freedom around the world with the influential Index of Economic Freedom. Since 1995, the Index has brought Smith’s theories about liberty, prosperity and economic freedom to life by creating 10 benchmarks that gauge the economic success of 184 countries around the world. With its user-friendly format, readers can see how 18th century theories on prosperity and economic freedom are realities in the 21st century.
The Index covers 10 freedoms – from property rights to entrepreneurship – in 184 countries.
So much for the Land of the Free, eh?
by | FREEDOM, GOVERNMENT, TAXES
David and Ruby had a once in a lifetime windfall earning themselves a $600,000 long term capital gain. When I told them that their federal tax liability on this gain was $100,000 they accepted this as the price ofliving in the U.S. But when I told them that their NY State and City tax on this gain was $80,000 they were dumbfounded. After all, David said, wasn’t the NY State and City tax usually 1/3 or less of the federal tax?
Yes usually. But NY State and City have been taking advantage of its most productive residents in a most underhanded way. Agricultural states give benefits to their farmers, and oil states give benefits to their producers, but NY State and City gouge their successful Wall Street investors.
When in 2003, Congress reduced the maximum on capital gains and qualified dividends from 35% to 15%, this portended a huge windfall for the securities industry so much of which is located – and pays huge taxes to – the State and City of New York.
But in (in) actions of unfathomable and irresponsible greed, neither the State nor the City legislatures made any corresponding reductions in their tax rates. Unfathomable because it led to the ridiculous relationship that David and Ruby experienced causing them to wonder if they should continue to stay in New York. Irresponsible in that it accelerated the move of the securities industry out of New York.
Although it’s true that New York securities industry profits are now higher than ever before, it is happening despite a steadily decreasing portion of this industry operating from New York. And when the industry returns to more normal time, we will sorely miss the business that was chased away by New York’s anti-securities industry tax policy.
NY’s US Senators and Congressmen decried (and voted against) the tax rate cuts on capital gains and dividends that did so much for Wall Street and the jobs it creates. The rate cuts passed anyway, leading to prosperity and surplus for the local economy.
However, these cuts are slated to expire in 2010 and New York State’s representatives keep taking about increasing rates on those involved in New York’s bedrock industry.
