The Howls of the Tax Whores: Obama and Biden want to Hike Taxes and ‘Spread it Around.”

 The question today  is really about taxes. From an interaction between Senator Obama and the Joe the Plumber we hear:

 “During the encounter in Ohio, Mr Wurzelbacher had asked the Democrat:"Your new tax plan is going tax me more, isn't it?"

 The Illinois senator answered: "It's not that I want to punish your success; I just want to make sure that everybody who is behind you that they've got a chance to success, too. I think when you spread the wealth around, it's good for everybody.”[1]—Times London.

 Then “‘Plugs’[2],” the person Obama selected to run as an also-ran,  toots his little tax-whoring song with this explanation to Katie Couric, who desperately needs to wash her hair:

 “"You got it.  It’s time to be patriotic, Kate.  Time to jump in, time to be part of the deal, time to help America out of the rut, and the way to do that is they’re still gonna pay less taxes than they did under Reagan."—Joe Biden, plagiarist and a person who cheated his way through Law School at Syracuse.

 This link has Joe talking away on TV: http://www.youtube.com/watch?v=cX5nlKcTzvU&eurl=http://americansforprosperity.org/index.php?id=6409

 This link also covers his tax returns. 

Now, this, we learn is patriotic.

Some history on Joe Biden.

 I previously asked him, as a constituent of Delaware and a Democrat, the following question:

 Is it a crime for illegal aliens to steal Social Security numbers and avoid taxes.[3] Here is the text:

Dear Senator Joe Biden,

May 14, 2007

Here are some brief facts about undocumented workers in the US.

[1] They crossed the border illegally.

[2] They misappropriate Social Security numbers from our citizens.

[3] They fill out employee forms for tax purposes with no intent to pay taxes.

[4] They do NOT file state or federal taxes as the misappropriated numbers would conflict with other returns by the original tax payer.

[5] When deported for criminal activity they frequently return.

Are these all facts?? Are any or all of these also crimes?? Please correct me if these are not crimes.

Somewhere, the liberal Democrats cannot seem to acknowledge that these are all crimes. As a presidential candidate one would presume you know about the Rule of Law, a favorite theme of the Democrats.

I would like for you to tell me if these are crimes and why we cannot address such crimes.

A Delaware resident.

Now, this was written in May 2007 and Joe never responded.  Senator Carper did reply, but did not answer the questions—he told me the system was ‘broken.’ I already knew that.  It seems that Joe wants Americans who achieve success to be ‘patriotic’ and pay excessive taxes, but illegal aliens can skate away with voting but not paying taxes. They can have free mortgages with no money down and no Social Security numbers and get all this tax free.

The Current Tax Issue:

 The haggling is about who will be earning the $250,000 and if that pertains to small business or whatever.

 Here is what our phony government states as ‘small businesses’:

 Q.    What are small business size standards?

A.    The term "size standard" describes the numerical definition of a small business.  In other words, a business is considered "small" if it meets or is below an established "size standard."

Q.   How does the SBA define a small business?

A.    A small business is an[sic] concern that is organized for profit, with a place of business in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor.  Further, the concern cannot be dominant in its field, on a national basis.  Finally, the concern must meet the numerical small business size standard for its industry.  SBA has established a size standard for most industries in the U.S. economy.  The most common size standards are as follow:

500 employees for most manufacturing and mining industries

100 employees for all wholesale trade industries

$7.0 million for most retail and service industries

$33.5 million for most general & heavy construction industries

$14.0 million for all special trade contractors

$0.75 million for most agricultural industries

About one-fourth of industries have a size standard that is different from these levels.  They vary from $0.75 million to $33.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees.  Several SBA programs have either alternative or unique size standards, such as the Small Business Investment Company Program.[4]

Some Discussion and Tax Analysis:

Now, look at the $7.0 million for most retail and service industries and ask the question: If Joe the Plumber has this business and sells $7 million gross and his profits are 5% of this and he takes this as a salary then that is $350,000 and well into Joe’s high tax range.  Joe would pay excessive taxes at this level. But, Joe cannot easily build his business into a $70,000,000 business because he would have to pay taxes on $3.5 million at the higher rate. The point here is that the $250,000 level is selected as a UPPER LIMIT on what American could make  with the usual high  risks and the taxes soar beyond that.  This tax system acts as a clamp that prevents people from making good m0ney. However, some slimy parasite named Franklin Raines made $90,000,000 at Fanny Mae in a government business. I am sure he paid his taxes, but he was a criminal and cooked the books and now works for Obama. Bill and Hillary Clinton made $110,000,000 last year.

Here is a summary of my thinking on this problem:

 [1] The upper half pays 96% of all federal taxes and the upper 10% pays about 80%.

[2] Obama has a massive spending plan and no plans to cut anything except the military, which would be a max of 100 bln.

Obama has plans to spend more than 1 trillion dollars. “If Sen. Barack Obama (D-IL) Could Enact All Of His Campaign Proposals, Taxpayers Would Be Faced With Financing $1.297 Trillion In New Spending Over One White House Term”:[5]

So, where is this money coming from? We have had a bailout now for some fallen banks of about 850 bln and a new  700 bln measure passed Congress. By Sep 21 it looked like this:

[3] They already spent 455 billion on banks like Bear Stearns. [6]

[4] There is the new $700 billion and Fannie Mae is in the tank  for $1.7 trillion[7]

[5] There is a growing problem with consumer credit [credit cards] that were based, in part, on home equities.  How much will that cost?

 [6] Social Security will need more taxes by 2014 or sooner so this is approaching fast.

 So we spent 0.45 trillion already on bad banks, 0.7 trillion on the new Congressional  rescue, and 1.7 trillion on Fannie Mae and now Obama will NOT cut spending but will spend 1.3 trillion on new social programs.  That is a bit more than 4 trillion dollars.  Please note that Fannie Mae has 3.5 trillion dollars worth of bad debt. 1 billion is $8 in tax liability for each worker at 130 million workers so 1 trillion is $8000 for each worker. But, only the top 10% or so will pay all of this so the business owners will have to pay it all! This is in addition to rules, regulations and such. Note that Social Security fees [they are NOT taxes] would increase up to $250,000.  That is 12.5% of everything up to the top or up to the top or a max of $31,000. Employers pay both parts of this although the worker must ‘contribute’ to the business to keep employed. We already have a 10.5 trillion dollar debt that costs us 0.4 bln in interest service each year on a slim 3 trillion dollar federal budget. Can we add 8 trillion more to this debt?

 To compare this to the past:

 “Historically, Senator Obama's tax rate would be the highest individual tax rate since the Jimmy Carter[8] days. Tax shelters and tax avoidance strategies were common when the top marginal rate was 70 percent or higher. “[9]

 Let us get this straight: There is no way this works for me. All I see is a general trend toward socialism and taxes so high that they will discourage business people as Jimmy Carter managed to do.

 Does anybody see how this works? I just don’t see how this works. We will all be working for the government.  Contact me with comments and help me figger this out. I didn’t put in the salient fact that CA, MA, NY and NJ are going broke and will require probably 10-20 bln each to survive, if that is necessary.

 rycK

 Comments to: ryckki@gmail.com