Where does the government get its money?

I cannot even believe I am writing this post but recently, polls and even some local man on the street coverage has made me rethink whether or not this is a valid post. The main driver that took me over the edge was a radio station in New York Friday had a "man on the street segment". They were asking about where the government gets the money.

One respondent said, "I know the government gets money from taxes. But they also should spend some of their own money". I found this answer unbelievable. So I thought that it would be worthwhile to review where the government gets it money.

Rules for Government Funds:

1. The government can tax citizens for funds
2. The government can tax business for funds
3. The government can borrow...against funds they tax on citizens and business
4. The government has no other source of funds EXCEPT to just print money-which as a policy must be backed by.....taxpayers.

So you see, the government has no money "OF ITS OWN". It only has your money. And if you think it is any different, you are either naive or ignorant. Either one is unacceptable in today's economic situation.

If this post has made you angry and you want to know why, please send me a private note. There is nothing here that should upset anyone and if you are upset, you need some asisstance understanding of the economics and we are perfectly happy to accomodate you.

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Charlie Rangel has done it again. Taxes for you but not for him!

The New York Post has once again caught Charlie Rangel playing tax games on residences. You may recall the scandal before the election about Rangel's vacation residence in the Dominican Republic that he didn't bother to declared on his tax return. Or his use of two rent stabilized apartments for himself and his campaign offices. And now this:

Harlem Rep. Charles Rangel took a "homestead" tax break on a Washington, DC, house for years while simultaneously occupying multiple rent-stabilized apartments in New York City, possibly violating laws and regulations in both cases.

You may ask, what is wrong with that?

The situation raises a number of potential problems for the congressman, including:

* New York City law requires that tenants use rent-stabilized apartments as their primary residence.

* DC's real Property Homestead Deduction Act also requires that a property receiving the benefit be a primary residence.

* Tax lawyers told The Post that a property owner cannot have two primary residences - or take advantages provided to primary residences at two different addresses simultaneously.

* DC's law also requires that the owner of a property benefiting from the tax break be a personal-income taxpayer in DC. District law exempts members of Congress from paying personal DC income tax, but they must pay property tax.

The real issue is so much deeper than this newly reported story. This mean is Chairman of the House Ways and Means Committee. This committee is responsible for setting tax policy. And this is the third time in three months that Charlie Rangel has had serious allegations brought up accusing him of at least an ethical violation and at worst a crime. If it were you or I, we would be in handcuffs.

And worse than this, Nancy Pelosi has not seen fit to even reprimand Rangel. It is frankly the kind of corruption the Democrats have perpetuated for some time with a public too dense to hold them to account. Rangel has crossed the line and is actively subverting exactly the tax policy he wants applied to you. He is a criminal.

Read the entire Post story here.

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Biden Unplugged! Any questions?

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The Great Obama Coverup

I continue to be amazed at the level of active campaigning being done by the mainstream media in this presidential election. Time and time again, both candidates don't seem to get the same treatment and yet it is accepted by everyone as status quo. Yesterday, a McCain supporter expressed he outrage. This is happening because regular people are frustrated that this has degenerated to something far less than a fair fight. And mark my words, someone (likely the print media first is going to pay and pay big).

Need examples? McCain is tagged with the economic problems despite attempting to reform the system that caused them. Obama accepted major campaign contributions directly from the corrupt institutions second only to Chris Dodd. No questions asked of Obama by the media. The story? McCain is erratic because he went back to DC and tried to do something (he should have known that is much easier to be "present").

Obama's campaign war chest has been feathered by massive donation fraud. Basic checks have not been made to verify donors. This includes gibberish typed from a computer keyboard and numerous Dallas Cowboys without valid addresses. Any questions of Obama? No. But there have been plenty of questions about McCain having someone who was once a lobbyist in his campaign.

Obama is clearly a byproduct of a "go along get along" corrupt Chicago political establishment. As a matter of fact, his defense to his connections with Weather Underground Terrorist William Ayers (as told to Michael Smerconish yesterday on 1210 in Philadelphia) was that he was just a guy who was part of the political establishment that he worked with in Chicago. He made a long term habit of voting "present" in the legislature. He has stood for and continues to stand for nothing. But he is a transformational candidate. And no one asks questions about it.

During Obama's time in Chicago he touts being a "community organizer". Funny thing is that an organization he trained, ACORN (Association of Community Organizers for Reform Now) is right this minute under investigation in 11 states for voter fraud. Has anyone asked Obama about this? Nope. The story? Republicans are trying to suppress turnout.

Joe Biden sounded really good in his debate last week. The trouble is, virtually every single thing he said was not just shading of the truth, but an outright lie. And the story? Sarah Palin winked.

Barack Obama in this week's debate couldn't wait to highlight his man of the people meme about how he would cut taxes to 95% of the people in the United States(paid for by the 5% who will see a tax increase). Trouble is, 40% of the people in the United States do not pay taxes at all due to the Bush Tax Cuts. So in reality, Obama just announced a massive welfare payment payed for by the small business establishment stupid enough to be in his top 5%. Any questions by the media? Nope. The story? McCain is taxing healthcare (a convenient lie by Obama who leaves out that McCain has proposed a credit that would more than offset any tax on the premium).

And then the whoppers. I cannot even count the disgusting and nasty rhetoric that come from direct Obama spokespeople, supporters and media people in regard to McCain and Palin. McCaskill, Reid, Axelrod and hollywood celebrities all spewing negative bile ("I hate McCain" Harry Reid, "McCain injecting race into this election" Axelrod, "That is one crazy b*tch" Betty White). And NOT ONE time does Obama tell his own people to tone it down. As a matter of fact, you can probably collect dozens of these kinds of insults each week for the past two years. And does the media report on that? No. They report that someone referred to Barack Obama by his middle name, Hussein. And Obama then goes on the radio and says McCain should tone it down.

If Obama gets elected and a flood of bad news comes down the pike that should have been reported beforehand, it may be time for a real revolution against the mainstream media. While I would be extremely sad to see an institution like General Motors go out of business, I would not blink an eye if the New York Times ceased to exist.

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Awesome Parable on Taxes

From the Rhode Island Blog Anchor Rising:

Sep 19, 2008
Public Tax Meeting

We Voted On It
John JJ Richman was making breakfast when he heard the crowd outside. They seemed just shy of hostile. He opened his door to see about 65 townspeople, out of a town of 100. Two spokesmen were standing on the porch.


John: Good morning. Why are you all here?

Rob: There are things that need changing, and you are the one to help us.

John: (Distracted by the milling crowd)


Rob: The town could use improvement. Renovating the school, hiring more police, fixing up the football field, and a summer splash fountain for the children. For the little children! (Rob was shaking a bit.)

John: Well, if you put it like that, I can contribute $1000. (He scans the crowd) Make that $2000.


Rob: Not enough. We want you to pay for it all, along with the other 4 rich guys in town. You are earning $250,000 and paying $80,000 in tax. We think $105,000 in tax is only fair, (his eyes flash) or maybe a bit more. That leaves you with $145,000, which is more than fair. You live in the town and will benefit from the improvements.

John: That's a big bite. Why should just 5 out of the 100 fund the whole town? As a single man, that $80,000 in 2008 payroll and income taxes is 32% of my earnings, isn't that enough? Maybe the whole town should contribute.


Rob: We contribute what we can. We have less money than you. Some of us work for you, and you don't pay enough. We should all be more equal. You have the money and we need it.

John: I already personally pay 20% of the town's expenses. The 5 rich guys in town together pay 60%. The 25 well off families pay 86%. Isn't that enough?


Rob: We are not into philosophy. We want money. You have money.

John: Well, I don't agree with you. Where do you get the authority to just take what you want from me?


Rob: I'm the mayor, and at my election two years ago a referendum passed by 65 to 35 about fixing potholes. I think you argued at the time that there was already enough money to fix them. It seems you were always stingy.

In that referendum, Section 3, Paragraph 2.a says: "The town shall have the authority to levy taxes to an aggregate amount strictly limited to a total of $20,000 to fix the potholes in the town's streets and thoroughfares (note 1)."

Note 1 says: "And in emergencies, for things other than potholes, and possibly a bit more".

(The crowd laughs and slaps each other on the back)


John: This is unfair. You want me to pay more without paying anything more yourself.


Rob: Actually, we are lowering our own taxes. We deserve it, and you don't. We don't understand how you get your money. Some sort of luck or black magic. It probably should be ours. Somehow you took it when we weren't looking. We are leaving you more than enough. You should be happy.

John: I don't have the extra money on me.


Rob: We'll bill you. We are not barbarians.

(The crowd looks disappointed)

John: It seems I can't do anything about this. You understand that I won't be expanding my business within the town. I'm feeling a bit upset. I may go fishing.


Rob: Fishing is good. We'll see you there.

We may be back in a month about money for another Stimulus Package. We want to improve the town economy by giving each of us 65 a stimulus check of $1000. Those new TV's look sweet.

John: Is that all?


Rob: (Turns toward the crowd without answering) OK boys, next stop is 13 Orchard Lane, there is more work to do

And better yet, the comment after was just perfect:

Anonymous said...
And now - The Rest Of The Story:

Within the year Richman, the 4 other rich guys and most of the other 25 well off families in town had put their homes up for sale and moved to other towns. They outsourced much of their manufacturing to Mexico and the far east and moved the remainder or their plants and other business interests to other towns with more reasonable tax structures.
The taxes no longer paid by these people were shifted to the remaining well off families who are now in the process of leaving town.
The extra police have been laid off along with half of the original force. The money for the football field was spent on new sod but the field is now overgrown because there is no money to repair the broken lawn mower.
The splash fountain for the children was started but there isn't any money to complete it so it remains a muddy eyesore.
The streets and public buildings are in poor repair but there is no money to fix them.
The mayor is running for re-election on promises to increase tax revenues by raising the tax rate on the campgrounds and antique stores that bring tourists to the town, as well as the hotels, restaurants and other businesses that cater to them.

BONESHAKER

9/20/08 7:28 PM

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Biden - Empty your pockets to be a patriot!

Joe Biden once again opened his mouth and put his entire foot into it. From the Associated Press:

"We want to take money and put it back in the pocket of middle-class people," Biden said in an interview on ABC's "Good Morning America."

Noting that wealthier Americans would indeed pay more, Biden said: "It's time to be patriotic ... time to jump in, time to be part of the deal, time to help get America out of the rut."

Pay close attention to those words. He wants to "take" money from one group of people and put it into the pocket of another group of people. That sounds just like the former Soviet Union. And this would just be sad if real facts on the ground don't tell the real tale.

The real issue is that in this country, 53 percent of taxpayers do not pay any taxes at all. The top 20 percent of wage earners already pay more than 2/3 of ALL taxes. The reward for people who work hard to earn money for their families and achieve some level of success according to Biden-Obama? Give it to the government so they can redistribute it to others.

That isn't am economic plan. That is socialism pure and simple. Patriotism? I don't think so Comrade.

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Federal Workers can make tax laws but won't pay!

From foxnews.com:

The Internal Revenue Service is trying to collect billions of dollars in late taxes from nearly half a million federal employees.

Documents obtained by WTOP radio through the Freedom of Information Act show the federal employees and retirees did not pay more than $3.5 billion in taxes owed last year.

Just like with Charlie Rangel and his lack of tax responsibility while reaching into others pockets, this is outrageous. But the article isn't finished:

The Executive Office of the President, which includes the White House, has 58 employees who did not pay more than $319,000. More than 1,000 Capitol Hill workers are on the list.

So 58 people in the White House don't bother to pay taxes. That's bad enough. But 1,000 people who work on the Hill? Are you kidding me? I wonder how many normal citizens are afforded the same courtesy. Frankly, the IRS should release exactly who these people work for and their role in the setting and execution of tax policy decisions.

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