The ‘Bush Tax Cuts’ Are Really Tax Hikes
A post by Christopher Bergin at Tax.com caught my attention when I read the title (same as above).
I’m watching the Sunday talk shows and listening to the endless droning about who deserves to keep their so-called Bush tax cuts. I’m thinking: Am I the only one who gets this? Nobody is getting a tax cut; we’re all getting a sneak attack tax increase.
Read the rest of Christopher’s post here.
When I saw the title of his post I thought to myself, “Whiskey Tango Foxtrot?”, but then I read on and saw that he had a bit more sense than initial reactions warranted.
Just a little refresher: The only reason the Democrats were willing to go along with the tax cuts in the first place was if they were NOT permanent. Bush and the Republicans wanted the tax cuts to be permanent so that action would have to be taken to raise them again, the Democrats wanted them to have an expiration date so that inaction would raise taxes at a later date. They needed the Democrats votes at the time so they agreed to an expiration date. This is by Democrat design, not Republican.
It seems those in the government think that the people are morons, while I admit that there is a higher percentage of moron-ism in this country than I would like to see, the American people are highly intelligent and not quite as easily fooled as some would hope. I do see the government and the media try to change history and unfortunately succeed in most of their attempts, but if they try to turn this one around and actually blame Bush for the coming tax increase, the people will never fall for it. And if they do, I will print out this post and eat it with a posted video stating I was wrong.
Obama Supporter Exausted
An Obama supported informed the President today that she is exhausted from trying to defend him, his administration and the mantel of “change” that she voted for. She was expecting to get a President that was going to change things that would improve things for her particular class and while she could understand not seeing major changes at this point, she was hoping for at least a glimmer of hope by now. She sees her future getting worse for herself and her family despite the fact that she is a government employee with a taxpayer guaranteed salary, retirement plan and free health care.
When the President was informed by her that she was exhausted of defending him, he chuckled with one of the most condescending reactions that I think I have ever seen.
Is this my new reality? She asked, Obama’s answer was long winded as usual but basically he claimed once again that things would be worse without him. Wasn’t this the same rhetoric the pigs kept spewing in Animal Farm?
Imposing Economic Collapse
I have been putting much thought into the current state of the economy in the United States. While I am certain that we are on the verge of an economic collapse, this post is based upon my opinion and not fact so I will not be presenting numbers here, just thoughts and ideas. I also really hope that I am wrong.
I hear many people saying that if we continue taxing, regulating and spending the way we are, that our country will go bankrupt. I absolutely agree with the exception that I think we are already bankrupt and it is being covered up.
In 2008 when President Bush signed the first stimulus bill, I knew then that it was an attempt to delay the onset of a recession. In this case, the recession came before the end of his term anyway, but his goal was to leave office recession free, in other words, to cover up the actual state of the economy. This cover up, I believe, started long before 2008, 2003 or 2004 would be my guess.
Fannie Mae and Freddie Mac are a good example of what I think is taking place in most, yes I said most, of the economy. Freddie and Fanny were buying bad mortgages from banks left and right, as long as they could hide the fact that the housing market wasn’t grossly overinflated, everyone seemed happy and continued to invest in real estate. But there comes a point where the lie can no longer be hidden and the walls come crashing down. In this particular case, responsible homeowners who paid their mortgages are the ones who suffered the biggest losses.
With Obama as President, that cover up has not only continued, but now it requires a lot more effort. The economy is in bad shape, but I believe things are far worse than even Obama is letting on. I believe that he thinks if he can just keep the cover up going a little longer, that the people of America will feel more confident to start investing again thus reviving the economy.
Now, I am not blaming this all on Bush, and believe it or not, I am not blaming it all on Obama. The blame can be spread around to more people than we will ever know. I think the best way to describe this is to use a large private company as an example. When a company gets large enough that the bean counters only have time to look at the bottom lines of each department, the departments stop working together as a team and start worrying more about their own bottom line over that of the company’s. If a department can lower their bottom line by doing things in a way that end up shifting the costs to another department, even though the other department ends up spending more, they do it as a form of self preservation. Department A can save $100 by having department B handle a certain task, but it costs department B $150, but the individual bottom lines look good so everyone is happy.
The bureaucrats running the government are watching out for their individual bottom lines at the expense of other governmental departments, they are playing a huge shell game with debt. The debt is being shifted around to different government agencies in order to keep each agency looking good and we are now at the point where they aren’t even looking good anymore. In order to get to this point, where the government agencies are starting to look bad, things have to be really, really bad.
We all hear the numbers, national debt, deficit, unemployment etc. and they all sound pretty bad, but this is even after government spending in amounts no mortal man can even comprehend, the very same spending that was designed to cover up just how bad things really are.
On the other hand, there are some people who oppose free market capitalism so much, that they are activly working to cause the collapse of our economy, this is not opinion, it is fact.
Think of a building that has a really bad termite infestation, over the years when any damage would appear it would just be patched and painted over by different people. Eventually, the damage gets so bad that the entire building, inside and out, needs to be painted. But even after the biggest paint job ever, it still doesn’t look good. People say it may collapse in another ten years, but that is only because no one know exactly how extensive the damage really is.
I fully expect the collapse to happen in late 2011 or early 2012.
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