Rich People become Liberals so People don’t Shame them for their Obscene Wealth
Rich people love being rich. They love their mansions. Their expensive cars. Eating at the finest restaurants. Drinking the finest wine. Going on lavish vacations. Going to the best parties. Hanging with the beautiful people. And rich men especially like the sex with beautiful young women their wealth can make happen. To quote the Eagles song Life in the Fast Lane rich people love having everything all of the time.
Some of the richest people in the United States are liberals. Yes, those same people who argue for income and wealth equality. Hollywood stars. Televisions stars. Authors. And music stars. Who are everything they stand against. They’re part of that evil 1%. And they live very ostentatious lives. Their wealth is over the top. Bling. Cars. Cars with bling. Nothing but the best. And then some. This wealth is okay, though. But those in the 1% other than them? Government should raise their taxes to take as much of it away as possible. And we should all shame them for daring to have such obscene wealth.
Of course, rich liberals like their obscene wealth. They want to keep it. And they want to continue their lavish lives. But they don’t want people shaming them. They want people to love them and adore them. So they buy whatever they’re selling. Movies, televisions shows, books or music. They don’t want anyone shaming them for their obscene wealth. So they do something very simple to avoid that shame. They become public liberals.
Only those Businesses that Continually Please their Customers Succeed
Liberals can have the most obscene amounts of wealth without anyone shaming them for that obscene wealth. Why? Because they belong to the ‘right’ political party. The one that argues against income and wealth inequality. So they get a pass. Which is why so many rich people are liberals. They want to be left alone. And their call for higher taxes on rich people? Well, they’re so rich that they can hire the best accountants and tax attorneys to help them shield their wealth from the taxman. There’s a reason why the tax code is so convoluted and not a simple flat tax like conservatives want. To help rich liberals keep their money.
Then there are rich liberals who have too much of a conscious. And they feel guilty for having obscene wealth. But not guilty enough to give their wealth away. These liberals are vehemently pro big government. They want a massive welfare state. To assuage their wealth guilt. So they can continue to enjoy their obscene wealth. Their 1% wealth. Without having to feel guilty about it. Such as, presumably, The Daily Show’s Jon Stewart.
Jon Stewart is a very well-read and intelligent man. He knows a lot of stuff. Unfortunately, though, he draws many wrong conclusions with that knowledge. He favors big government. And a vast welfare state to help those in need. He trusts government while distrusting corporations and businesses. Because, as he has said, we have no vote with corporations and businesses like we do with government. Via elections. But he’s wrong. We do have a vote with all corporations and businesses. The moment they stop treating their customers right those customers go to other corporations and businesses. Most new businesses fail within 5 years. And some big companies that have been around for years fail and go out of business. Why? Because their customers DO have a large vote in whether they succeed or not. And only those businesses that continually please their customers succeed. Something you just can’t say about government. For no matter how much they anger the people little ever changes.
Not only is there Income and Wealth Inequality there’s also Income Tax Inequality
Fox News has been talking about people scamming the welfare state. Highlighting a surfer dude in California as a typical welfare cheat. Stewart lambasted Fox News for that. Saying one person (or two or three, etc.) does not mean all people on welfare are gaming the system. Although he uses that very logic to point at corporations caught in wrong-doing. Saying they represent all corporations and businesses. And he joins the choir about how rich corporations and rich people are not paying their fair share of taxes. And how some of these rich corporations and rich people are hiding their income and wealth from the taxman. Despite their paying the lion’s share of all taxes.
According to the National Taxpayer’s Union, when it comes to income taxes it’s rich people paying the most. So not only is there income and wealth inequality. There’s also income tax inequality. Through recent years the top 1% of income earners has paid approximately a third of all income taxes. The top 5% has paid more than half of all income taxes. And the top 10% of income earners has paid about 70% of all income taxes. While the bottom 50% of income earners, the people rich liberals want to help, pay about 3% (or less) of all income taxes.
You don’t have to raise tax rates on the wealthy. They’re already paying a disproportionate share of all income taxes. In fact, if you cut tax rates and cut business regulations to help rich business and rich people get even richer more tax revenue would flow into the treasury. This would be a good thing. Rich people getting richer. And more people becoming rich. This should be what everyone wants. Based on the amount of taxes rich people pay. So we should stop trying to help the less fortunate by raising taxes on the rich. And creating more onerous regulations for businesses that benefit the less fortunate. Like Obamacare. For it hurts the profit incentive. Which prevents rich people from getting richer and paying more income taxes. As well as dissuades people from becoming business owners or expanding their businesses. Which means fewer jobs. Fewer hours in those jobs. And the replacement of costly people with machines. It’s because of these things that median family income has fallen under the Obama administration. Which is the last thing any good liberal should want. This is why rich liberals have got to stop supporting a large welfare state to assuage their wealth guilt. It’s killing the middle class. And destroying the jobs that could pull the less fortunate into the middle class. And beyond.
Tags: 1%, businesses, corporations, guilt, higher taxes, income, income and wealth inequality, income tax inequality, income taxes, jobs, Jon Stewart, less fortunate, liberals, middle class, obscene wealth, rich, rich liberals, rich people, shame, taxes, wealth, wealth guilt, welfare state
Politicians Lie because they will Lose Elections if they Tell the Truth
Politicians lie. Why? Simple. Politicians lie when telling the truth won’t help them win an election.
When President Obama lied the Lie of the Year he lied for a reason. People didn’t like the Affordable Care Act (aka Obamacare). They did not want national health care. And they believed that Obamacare would put them onto the path to national health care. To allay their concerns President Obama said, “If you like your health care plan, you can keep it. Period.” The statement that became the Lie of the Year. Because a lot of people lost the health care they had and wanted to keep. In fact, they wrote the Affordable Care Act to make sure that would happen. As they need to herd as many of the young and healthy into Obamacare as possible to make the thing work. People who would pay into the program while not collecting any benefits. So they could subsidize the old and sick.
Had the president told the people that they would lose the health care plan that they liked and wanted to keep there would have been a lot more opposition to the Affordable Care Act. With constituents pressuring their representatives to vote against it or they would vote against them in the next election. This is why politicians lie when they do things against the will of the people. Because they will lose elections if they tell the truth.
Having Victims is No Good unless you have someone to Blame for their Victimization
Democrats lie a lot. Because their policies have a long history of failure. Especially their economic policies. And that’s because Democrats embrace Keynesian economics with a religious fervor. Despite Keynesian economics giving us the Great Depression, the stagflation of the Seventies, the dot-com bubble recession and the Great Recession. No, these Keynesian disasters don’t give Democrats any reason to doubt their faith. Because at the heart of Keynesian economics is an activist government in the private sector economy.
Democrats like to fault capitalism. Saying unfettered capitalism is unfair. Unfeeling. Cruel. And just plain mean. So they involve themselves in the private sector economy to even the playing field. To unrig the rigged game. To remove the unfair, unfeeling, cruel and mean elements of unfettered capitalism. By fettering capitalism. And the first thing they do is identify victims of capitalism. A secretary who pays a higher tax rate than her boss. Warren Buffet. Minimum wage workers who can’t earn a living wage. And, of course, people who live in fear of losing everything because they don’t have health insurance.
Of course having victims is no good unless you have someone to blame for their victimization. Such as the 1% who are extremely wealthy but don’t pay their ‘fair share’ of taxes. Even though they pay over a third of all federal income taxes while totaling only 1% of the population. Greedy business owners who’d rather pocket millions while depriving their workers from earning a living wage. Even though most business owners are not millionaires and probably could earn more by working for someone else. And evil corporations who force people to work against their will or lose their health insurance and other benefits. Even though people tend to work where they receive the best pay and benefit package their skill and experience can get. And will leave one job in a heartbeat for a job with a better pay and benefit package elsewhere.
The Affordable Care Act is an Economic Model that cannot deliver on its Promise
Once they have their victims and their villains all they need to do is pull on the heartstrings. To generate sympathy for the victims. While getting these same people angry at the villains. Which they do by avoiding facts. Instead, they tune in to people’s emotions. Victims are sad. And we should do something to help them from their victimization. Villains are bad. And we should do something to punish them. So they demonize these villains. Getting the people to believe that punishing them, say, with higher taxes will somehow improve their lives. Which it won’t. In fact, they could take all the wealth away from the 1% and imprison them but it won’t make a difference in the lives of the 99%. For if the 1% are no longer creating wealth they would be unable to pay over a third of all federal income taxes anymore. Requiring higher taxes on the 99%. Or a drastic cutting of government benefits.
If people understood sound economic principles (and not the Keynesian nonsense our power-hungry politicians favor) they would not be so emotionally manipulated. In fact, if people had a solid understanding of history they would never vote for anyone attacking capitalism. As unfettered capitalism is the only economic system that allows people without privilege to be as successful as anyone else in the country. Whereas the most anti-capitalistic countries have had the greatest poverty and human rights abuses. Such as the former Soviet Union, the People’s Republic of China, the former Eastern Bloc countries, North Korea, Cambodia, Cuba, etc. So for emotional manipulation to work they need a not so educated public. Which is why the Democrats control public education and our universities. And champion pre-K. To get control of our kids as soon as possible. To dumb them down. And program them into good Democrat voters.
This is the formula the Democrats use to win elections. Victimization + Demonization + Emotion = Democrat Votes. For they can’t win by telling the truth. Or having informed voters. So they use their control of our educational system to make more emotionally pliable voters. Ones that are easier to lie to. And that they can sway with fiery rhetoric. Which is why we have Obamacare today. Because the Affordable Care Act is an economic model that cannot deliver on its promise. To provide a higher quality health care to more people while costing less. Which is impossible. Just as it is impossible to draw a square circle. It’s either a square. Or a circle. It cannot be both. Ditto for the promise of Obamacare. Which is why to get people to believe that it was possible to give them more for less required telling a lie so big that it was voted the Lie of the Year.
Tags: 1%, 99%, Affordable Care Act, business owners, capitalism, Democrat votes, Democrats, demonization, election, emotions, health care plan, health insurance, If you like your health care plan, Keynesian, Keynesian economics, lie of the year, living wage, National health care, Obamacare, politicians lie, President Obama, tell the truth, truth, unfettered capitalism, victimization, victims, villains
Week in Review
The Dow Jones Industrial Average is at a record high. The unemployment rate fell one tenth of a percentage point in April. Nonfarm payroll employment rose by 165,000 in April. And interest rates are still so low that they are almost negative. Good news for Wall Street. And rich investors (see Revised Wall Street Forecast: We’re All Going to Be Rich by Kyle Stock posted 5/13/2013 on BloombergBusinessweek).
Whether, the country’s 500 biggest companies are collectively worth that much is another question. Goldman says most of its own valuation engines show the market is currently at or above where it should be trading. In other words, eager buyers are keeping it high. Low interest rates are spurring things along, as investors borrow increasingly large sums to place bigger bets.
That’s not to say some people aren’t nervous about the recent gains. “It’s one big carry trade, and all it’s doing is setting us up for a bigger correction,” says Joseph Saluzzi, partner and co-founder of Themis Trading, an institutional brokerage firm that specializes in equities. “Whether it’s going to be a week from now or a year from now, I don’t know; but it’s going to be ugly.”
President Obama has been saying for years now that the economy has turned around and things are getting better. But better for who? Wall Street. Not Main Street. The 1%. Not the 99%. Things are still pretty horrible for the 99%. The unemployment rate may have fallen in April but the labor force participation rate hasn’t budged from March. It’s still at record lows. You have to go all the way back to President Carter’s Seventies to find so many people unable to find full time work. That’s right, even George W. Bush had better economic numbers throughout his presidency. And he suffered through a couple of recessions. And the greatest terrorist attack on American soil. So things aren’t getting better. They’re only getting better for the 1%. Who are borrowing that cheap money the government is printing to make more money. While the general economy languishes in the worst recovery since that following the Great Depression.
And it gets worse. Once the markets correct all of that irrational exuberance the economy is going to crash. Hard. Just as it always does after artificially low interest rates push stock prices into the stratosphere. And “it’s going to be ugly.” As it always is. And the longer they keep those interest rates artificially low the uglier the inevitable correction will be. When the correction comes it will be the 99% that will suffer the most. As they always do. As even more people will be unable to find a full time job. Pushing the labor force participation rate even lower than it ever was in the Seventies. This is what President Obama is doing to the 99%. While he and his 1% friends are living large. And will continue to live large after the crash. Just as Hugo Chavez was able to live large in a country that couldn’t even make enough toilet paper for its people. Because rich people and those in government always do well. No matter what they do to the people.
Tags: 1%, 99%, correction, George W. Bush, interest rates, labor force participation rate, Main Street, President Obama, recession, rich investors, unemployment rate, Wall Street
Narcissistic Celebrities enjoy the Adoration but they still want the Obscene Wealth
Being rich. It’s what everyone wants to be. To be rich. From the women that go to Hollywood to become rich actresses. And the men who try to become rich actors. To the musicians who try to make it big and become rich musicians. It’s why people become a better athlete than anyone else. To get a fat paycheck. And endorsements. So they can be rich. And why women want to break the glass ceiling in corporations. And get their face on the cover of Forbes. So they can become richer. Everyone wants to be rich. For the expression is ‘rich and famous’. Not just famous. It’s the reason why ordinary people buy lotto tickets. So they, too, can be rich. For apparently being rich is where it’s at. As everyone is trying to get there.
Being famous is one thing. Having everyone know who they are and shower them with adoration is nice. It’s why celebrities take to Twitter. So everyone can read their pearls of wisdom. For it strokes their narcissistic egos. But they still want the Hollywood mansions, vacation homes throughout the country, the luxury cars, luxury yachts and the private jets. In short they want to be able to afford anything that tickles their fancy. So they can live lives better than the average schmuck out there. They want to live like royalty. And they want to be treated as royalty.
That said there is a war on the rich in the country. The Democrats have demonized the so-called 1%. Which would include all of the above. In an effort to raise tax rates on those who can afford to pay more. To make the 1% pay their ‘fair share’. And the people are so in favor of this that they reelected President Obama. So he can continue to right past wrongs. And make the rich pay their fair share. So they gather in support of their president. With their torches and pitchforks. Figuratively, of course. And woe to anyone with a lot of money.
The First Rule about being Rich is Don’t Complain about your Taxes even if you pay Confiscatory Tax Rates
And they will do that right up until the day they come into money. Then it’s, “Guess I didn’t hate the rich as much as I thought I did. I mean, here I am. I’m rich. And I’m a pretty nice guy. Nothing to hate here. So let’s leave these good people alone. At least, let’s leave me alone. Put down those torches and pitchforks. And let me enjoy my obscene wealth. Because being filthy stinking rich is awesome. My only regret is that I wasn’t filthy stinking rich sooner.”
Ah, yes, here’s the quandary. How do I enjoy being everything that’s wrong with this country? Being someone who is filthy stinking rich? While not having people attack me for enjoying it? For being filthy stinking rich? How do I enjoy such great wealth inequality while being all for equality? In theory at least. Not in reality. For equality is okay for the poor people. But not for us filthy stinking rich actresses, actors, musicians and athletes. I mean, one of the reasons of becoming so rich was to get away from the poor people. Because who wants to live next door to one of them?
Well, first of all here’s what you don’t do. You don’t complain about the taxes you pay. Phil Mickelson (professional golfer) learned that lesson quickly. After expressing a certain discontent that he can only keep about 37 cents of every dollar he earns he quickly issued an apology. Because the sports media went ballistic when this rich guy complained. So the first rule about being rich? Don’t complain about your taxes. Even if you pay confiscatory tax rates. Because that will only invite people to get out the torches and pitchforks. Figuratively, of course.
Celebrities are Openly Devout Liberals so they are Free to Enjoy their Filthy Stinking Wealth
That may be enough for some. But if you want to be really rich as in filthy stinking rich you have to do more. Not only do you NOT complain about your high tax rates you campaign to raise them even higher. All while hiring some good tax accountants to figure out how not to pay your taxes. Because you want to keep what’s yours. Warren Buffet is one of the richest men in the world and yet no one picks on him. Why? Because he says we should raise taxes on rich people like him. People like rich people that attack rich people. So they will give this rich person a pass. And reserve their hate for other rich people.
But if you really want to enjoy conspicuous levels of wealth you have to do more. If you want to show off your mansions. Your cars. If you want to go to the finest restaurants and eat the finest foods. Drink the finest wine. The finest liquors. Smoke the finest Cuban cigars. Hang out with the most beautiful people in the world. At the most beautiful resorts. On the most beautiful yachts. If you want to gamble at the big boy tables and get the red carpet treatment from the casinos. If you really want to flaunt your wealth you have to do more than just support high tax rates. You have to go all the way. And be a liberal. And support all the liberal causes. And campaign for them in public. Even campaign for liberal Democrats. You do this and no one will attack you for your conspicuous displays of wealth. Even while they’re attacking other rich people for their conspicuous displays of wealth.
So if you’ve ever wondered why so many rich actresses, actors, musicians and athletes are such devout liberals this is part of the reason why. They just want to be left alone. So they can enjoy their filthy stinking wealth. And even though they’re richer than most we leave them alone. Because they support liberal causes. Even if they don’t believe in them. Even if they’re Republicans. Or closet-conservatives. Even if they vote Republican once they enter the voting booth. For as long as they act like a liberal on the outside of the voting booth people will leave them alone. And they will be free to enjoy their filthy stinking wealth.
Tags: 1%, actors, actresses, athlete, celebrities, confiscatory tax rates, conspicuous levels of wealth, Democrats, devout liberals, famous, filthy stinking rich, Hollywood, liberal, liberal causes, Liberal Democrats, musicians, obscene wealth, Republican, rich, rich people, royalty, tax rates, taxes, torches and pitchforks, voting booth, wealth
Week in Review
Now everyone is ganging up on the Republicans. In the fiscal cliff showdown. The Republicans want some deficit reduction coming from spending cuts. They have modified their position to allow some higher tax rates. But they want those spending cuts. Which the Democrats simply refuse. They want all deficit reduction to come from higher tax rates. Now even the 1% are saying to tax them more. At least, according to a new poll (see Majority of Rich Want Themselves Taxed More: Poll by Robert Frank, CNBC, posted 12/24/2012 on Yahoo! Finance).
American Express Publishing and The Harrison Group found that 67 percent of the top one percent of American earners support higher income taxes. Their support has grown since the election. This summer, 62 percent of them supported higher taxes.
Some might say the rich are hoping to tax people richer – or poorer — than themselves. The top one percent consist of people making more than $450,000 a year. But the survey clearly shows most One Percenters favor taxing themselves. More than half say that they support taxing those making $500,000 or more…
“There is an absolute willingness for the vast majority of the One Percent to take a tax increase,” said Jim Taylor, Vice Chairman Harrison Group. “What the Republicans think is not necessarily what their constituents think.”
Ask yourself this. Why are super rich movie, television and music stars staunch supporters of the Democrat Party? Is it because in their music studies they minored in economics? No. I don’t think so. I would even go so far as to posit that they cannot differentiate between classical economics, the Austrian school of economics, the Chicago school of economics and the Keynesian school of economics. Though they are staunch supporters of the last one. Because the Democrats embrace Keynesian economics as it enables big government spending. So why are super rich movie, television and music stars staunch supporters of the Democrat Party? So they can escape the bitter attacks on wealth business owners face.
These superstars live lives like Roman Emperors. All without having a real job. So they have no understanding of economic fundamentals. Or the first thing about scraping the cash together to make a payroll. But they do know that if they support and campaign for Democrat candidates they can enjoy their obscene wealth without someone attacking them for living like Roman Emperors. Could it be the reason why the superrich 1% are coming out in favor of higher tax rates on themselves? Perhaps. For there is no good economic reason to do so.
Raising taxes on them will not make a dent in the deficit. In fact, if you added all the federal income taxes those earning $200,000 or more paid in 2010 (see Table 3. Number of Individual Income Tax Returns, Income, Exemptions and Deductions, Tax, and Average Tax, by Size of Adjusted Gross Income, Tax Years 2001-2010) it comes to approximately $489 billion. If you divide that number by the highest marginal tax rate (at high income levels most income is taxed at the highest marginal tax rate) that comes to about $1.397 trillion. Which is just over the average Obama annual deficit of $1.324 trillion. So if you confiscated 100% of all earning from those earning $200,000 or more it will pay for one year’s deficit. So taxing the rich a few more percentage points will do NOTHING to reduce the deficit. The deficit is just too big. And there are just too few rich people. No, the only way to reduce the deficit by higher taxes only is to hit the middle class with a huge tax increase. Or you could cut spending. Which would require no new middle class tax. Like the Republicans want.
Tags: 1%, deficit reduction, Democrats, fiscal cliff, higher tax rates, Keynesian, Keynesian economics, marginal tax rate, middle class, reduce the deficit, Republicans, spending cuts, tax rates, wealth
When Old Enough not to Violate Child-Labor Laws we worked After School at the Local Hardware Store or Supermarket
Once upon a time one of our first jobs was delivering newspapers. We used to call these people paperboys. Then girls said they wanted to earn money, too. We called them papergirls. Boys and girls would fill up a bag full of newspapers slung on their bike and start peddling through the neighborhood. Raising a little spending money while they still were in school. They didn’t make much. They couldn’t keep doing this as a career and raise a family. But they made a lot of money for a 14-year old kid.
When these kids grew old enough to get a job without violating child-labor laws they went to work after school at the local hardware store or bagged groceries at the supermarket. Or worked at McDonald’s, Burger King, Wendy’s, Dairy Queen, Baskin Robbins, Big Boy, etc. During the summer they flocked to vacation areas and worked in the tourist economy. Anxious to earn money to put gas into their cars. Or go to the mall. Again, they weren’t making big bucks. Nothing that they could raise a family on. But they earned more than delivering papers. And were able to buy the things that were important to them.
Once we graduated high school some got jobs at factories. Some went into the skilled trades. While some went on to college. Working as waitresses to pay their way. Pressing clothes at a dry cleaner. Working as a short order cook. Or working their summers in construction. As well as working some odd jobs on campus between classes. Saving every penny to pay for their books. Room and board. Even their tuition. While still finding time to study. These kids worked very hard between their studies and their jobs. Using their earnings to pay their bills. While leaving them less spending money to have fun with than those paperboys and papergirls had. Who weren’t paying for books, room & board and tuition.
The American Dream is Being Free to Work Hard and Sacrifice to make a Better Life
These jobs we worked during our high school and college years were entry level jobs for the unskilled. Which is why they didn’t pay much. To reflect that skill level. But they gave us job experience. And a little spending money. Which was fine during those years because our spending needs were modest. Besides, these jobs weren’t our careers. They were just stopping points on our career paths. Where we learned some important job skills (be on time, work hard, how to work with other people, that the customer is always right, etc.) that helped us in our next jobs. And we moved from job to job. Gaining skills. And income. Until we could afford to raise a family.
Many started college after working for awhile. Or returned to college. Taking a couple of classes at night after work. To gain additional skills to advance in the company. Or to gain the skills to make a career change. So they could earn more money. To afford more things in life. Like a better home. In a better neighborhood with better schools for their children. Living the American Dream. Having whatever they want simply by working extra hard to have it. Which they could if they chose to put in the effort to increase their value in the market place. Which has always been the way to achieve our goals. Working hard and sacrificing to make a better life. Which is what brings others to our shores. To be free to live the American Dream.
Immigrants coming to this country often took menial jobs. Such as sweeping the floor in a factory. Saving every penny. Improving their language skills. If they needed to increase their language skills. Working hard. And when they acquired some skills they moved up. Earning enough to bring their wives over from the old country. Who also started working a menial job upon their arrival. To help earn enough money to buy a house to raise a family in. The husband’s hard work took him further up in the company. Or he set off on his own. Going into business for himself. Working even longer hours to provide for his family. Living out the American Dream. Working hard so their children can have a better life.
In the US People can go from being Poor to Middle Class to the 1% back to Middle Class and even back to Poor
Sara Blakely tried to be a lawyer but couldn’t pass the LSAT law exam. She spent some time as a ride greeter at Disney World. After that she tried selling fax machines door-to-door. Seeing a lot of doors slammed in her face. Not exactly the life she dreamed of. And if that wasn’t bad enough there was something else that bothered her. The way she looked in white pants from behind. And set out to do something about it. Starting with $5,000 Sara Blakely created Spanx. A company selling slimming bodywear that she invented. And about a decade later Spanx is now worth $1 billion. Pleasing some 6 million women. Who helped her give some $20 million to charity.
Currently in America there is a war on the rich and successful. Those on the Left are attacking those with money. Those who have worked hard and have earned wealth. Claiming that they got their wealth unfairly. And aren’t paying their fair share in taxes. That contemptible 1%. Those people they rile up the masses to hate. As if this 1% is a monolithic permanent upper class. As if every millionaire today has always been a millionaire. As if none of them ever failed the LSAT law exam. Worked as a greeter at Disney World. Or sold fax machines door-to-door.
But the 1% is not a permanent monolithic upper class. As people like Sara Blakely prove. And the others like her who have worked hard. Starting with little more than an idea. And a few years of savings. We call it upward mobility. Those in the 1% were likely at different income levels throughout their lives. Starting out poor. Working their way up to middle class. And the lucky few like Sara Blakely breaking into the 1%. Who earned every dime she has. And just as people can work hard to rise up to the 1% they can just as easily fall from the 1%. For there are no monolithic classes in the United States. Anyone can succeed here. And anyone can fail. So here people can go from being poor to middle class to the 1% back to middle class and even back to poor. Because in America you can live the American Dream. Where you’re free to do anything you want to try. You can work hard to succeed. And you can fail trying. But the key is this. Here you can try. Which is a lot more than people in many parts of the world can ever hope to do.
Tags: 1%, American Dream, careers, entry level jobs, job skills, jobs, menial job, middle class, millionaire, poor, Sara Blakely, Spanx, upper class, upward mobility
There are Stark Differences between Republicans and Democrats even though many are Equally Worthless
A lot of people listen to opposing candidates before making their voting decision. The perennial undecided voters. Who often don’t make up their mind until they enter the voting booth. Who are swayed by the prevailing political winds. Who are more susceptible to the lies and misinformation bombarding them during political campaigns. For these are good people. Kind people. Trusting people. Which is why the Left can lie to them so easily.
Anybody who has to listen to both parties’ candidate make their case before choosing who they will vote for does not follow politics. Does not understand the platforms of the two major parties. Does not have an understanding of rudimentary economics. Or history. For if they did they would be aligned with one party or the other. Because all Democrats are basically the same. And all Republicans are basically the same.
Democrats choose to be Democrats because they believe in and support the Democrat platform. Republicans choose to be Republicans because they believe in and support the Republican platform. Not in their entireties. But pretty darn close. Otherwise they would not identify themselves with their chosen party. For there are stark differences between the parties believe it or not. Even though many candidates from both parties are equally worthless and contemptible.
Republicans lean towards Free Market Capitalism while Democrats lean towards European Socialism
Republicans lean toward free market capitalism. The Austrian school of economics. Small government. Low taxes. Low government spending. Sound noninflationary monetary policy. A business-friendly environment that encourages entrepreneurialism. And job creation. They tend to be more socially conservative. And would prefer to combat the rise in teenage pregnancy and teen sexually transmitted diseases by having teens doing more homework and having less sex.
Democrats lean toward European socialism. What they call social democracy. The Keynesian school of economics. Big Government. High taxes. Lots of government spending. Inflationary monetary policy so they can print the money that they can’t tax or borrow to pay for all that government spending. They don’t believe that there can ever be too much business regulation (they may talk about creating good-paying jobs but their policies hinder job creation). They tend to be more socially liberal. And would prefer to address the issues of teenage pregnancy and teen sexually transmitted diseases by providing free birth control and abortion. Because teens are going to have sex anyway. And asking them to do more homework won’t change that.
These aren’t their official platforms. And it’s not an all-inclusive description of their policy positions. But it gives you a general idea of their differences. And as you can see there are differences. An undecided voter may struggle with their choice between Democrat and Republican. But that’s a decision few Democrats or Republicans ever have. Because they know the differences between their two parties. And really don’t like each other.
Those who vote Straight Party Ticket will know how they’ll vote even before any Candidates Announce
When it comes to wooing the undecided voters both political parties tend to downplay their official platforms. To keep from confusing the undecided with stuff they don’t understand. Or, worse, to keep from scaring away the undecided in case they do understand this stuff. So they make personal attacks. And promise free stuff to voters who’ll vote for them. Which Democrats can do a lot better. As they always want to raise taxes and increase government spending. Which comes in handy when giving away free stuff. While Republicans want to govern responsibly. Which isn’t very conducive to giving away free stuff.
Of course the Democrats don’t come out and say that they will tax people more so they can increase the size of government. To administer that free stuff. So they say things like they just want everyone to pay their fair share. And that those who can afford to pay more (the 1%) should pay more in taxes. For if only we were fairer we wouldn’t have these trillion dollar deficits. The president would like to return to the Clinton era tax rates. Raising the top marginal tax rate from 35% to 39.6%. In 2010 the top 1% earned about $1.7 trillion. So raising the top marginal tax rate 4.6 points would raise about $77.5 billion in additional tax revenue. Sounds like a lot of money until you look at the average annual deficit of President Obama’s 4 years in office. Which comes to about $1.3 trillion for each of his 4 years. So the president’s proposal to balance the budget would only raise revenue equal to 5.86% of his average budget deficit. Which won’t be anywhere near enough to balance the budget. So we’ll have to do more. And once we raise taxes on the rich that leaves the middle class. Which we will have to tax punitively to balance the budget if we don’t cut spending.
Of course, the Democrats don’t tell us this. This math. Though they talked about math a lot during the 2012 campaign. Instead, they just talk about being fair and having the rich pay more. Which sounds like the decent thing to do. Especially to the undecided who the Democrats haven’t exactly told the truth to. Which is why those who understand this math tend to vote straight party tickets. Either for their special interests and the math be damned. Those who tend to vote Democrat. Or those who seriously want to balance the budget before we end up like Greece. Those who tend to vote Republican. And unlike the undecided voters these people know who they will vote for even before they know who the candidates are. Who will ignore whatever the candidates say during the campaign. And, ironically, these people will probably be more informed than those undecided who study the candidates’ positions up until they enter the voting booth.
Tags: 1%, balance the budget, budget deficit, capitalism, deficit, Democrat, Democrat platform, fair share, free market, free stuff, free-market capitalism, government spending, marginal tax rate, Republican, Republican platform, socialism, tax rate, taxes, undecided voters
Week in Review
So who isn’t paying their fair share? I know who you’re probably thinking. And if you are you’re wrong. For here it is direct from a Democrat mayor’s mouth (see Steven Malanga: How Retirement Benefits May Sink the States by STEVEN MALANGA posted 4/27/2012 on The Wall Street Journal).
Chicago Mayor Rahm Emanuel recently offered a stark assessment of the threat to his state’s future that is posed by mounting pension and retiree health-care bills for government workers. Unless Illinois enacts reform quickly, he said, the costs of these programs will force taxes so high that, “You won’t recruit a business, you won’t recruit a family to live here.”
We’re likely to hear more such worries in coming years. That’s because state and local governments across the country have accumulated several trillion dollars in unfunded retirement promises to public-sector workers, the costs of which will increasingly force taxes higher and crowd out other spending. Already businesses and residents are slowly starting to sit up and notice…
Government retiree costs are likely to play an increasing role in the competition among states for business and people, because these liabilities are not evenly distributed. Some states have enormous retiree obligations that they will somehow have to pay; others have enacted significant reforms, or never made lofty promises to their workers in the first place.
Indiana’s debt for unfunded retiree health-care benefits, for example, amounts to just $81 per person. Neighboring Illinois’s accumulated obligations for the same benefit average $3,399 per person…
Back in Illinois, Dana Levenson, Chicago’s former chief financial officer, has projected that the average city homeowner paying $3,000 in annual property taxes could see his tax bill rise within five years as much as $1,400. The reason: A 2010 Illinois law requires municipalities to raise the funding levels in their pension systems using property tax revenues but no additional contributions from government employees. The legislation prompted former Chicago Mayor Richard Daley in December to warn residents that the increases might be so high, “you won’t be able to sell your house.”
What was that about the 1%? Just who is it living off of the generosity of the 99%? Who isn’t paying their fair share? And is asking others to pay far more than their fair share? Who is it that has pension and retiree health care plans worth several trillions of dollars? All funded by tax dollars from the 99%? As well as the 1%? Our government workers. That’s who. Those people who have made themselves more equal than the 99%. Even though they claim to be a part of the 99%. While living more like the 1%. But one thing you can say about the 1%. They’re not bankrupting their cities and states like these government workers are. Or destroying our lives to pay for their lives.
You want to talk class warfare? Let’s talk class warfare. The richest 1% pay approximately 30% of all federal income taxes. The richest 10% pay approximately 70% of all federal income taxes. And we don’t pay any of these rich people with our taxes. They get it however they get it. But they don’t get it from us. The taxpayers. So they providing a huge net good for us. Paying the lion’s share of taxes. And not taking our money from us. And yet these are the people that we vilify. While those who are harming us the most get a free pass. Now that’s some clever class warfare. Making it sound like it’s the rich who are oppressing the middle class. While it is the wealthy government class oppressing the middle class. And they do it very well. You’ll hear people everywhere say that the government should stick it to the rich. But they never say a word about these government workers who live a better life than they do. Even though they are paying for that better life. Through ever higher taxes.
So when your property taxes go up think about your retirement plans. And though you may not have much be comforted in the fact that your government workers do. Thanks to you. So even though you may not be able to travel the world in your retirement you’ll know that somewhere a retired government worker is. Because that’s only fair. And being fair is important. Fair share sacrifice. That’s all they want. As long as, of course, your share of sacrifice is greater than theirs. The wealthy government class.
Tags: 1%, 99%, class warfare, fair, fair share, federal income taxes, government class, government employees, government workers, middle class, pension, property taxes, public sector workers, retiree health-care, retirement, rich people, sacrifice, state and local governments, tax bill, taxes, taxpayers, wealthy government class
Week in Review
Don’t think high taxes influences behavior? Of course, no one cares about the evil 1%. Those greedy Wall Street types that don’t pay their fair share of taxes. But you know who else is in that greedy 1%? Your favorite athletes. And guess what? They want to hold on to their earnings just like those greedy Wall Street types (see Professional Athletes’ Big-League Tax Bills by Jay MacDonald posted 3/15/2012 on Yahoo! Finance).
Behind every sports star who’s hauling down the big bucks is a keen-eyed certified public accountant quick-stepping through a maze of state and local income taxes imposed on nonresident athletes, commonly known as the “jock tax.”
Professional sports players get taxed by pretty much every city and state in which they play, says Ryan Losi, CPA and executive vice president of Piascik & Associates, a Glen Allen, Va., accounting firm that represents more than 70 professional athletes.
“NFL players typically file in 10 to 12 jurisdictions. NBA is somewhere between 16 and 20. MLB is somewhere between 20 and 26, and the NHL is between 14 and 16,” says Losi.
Professional sports players are great big cash piñatas to these city and states that chronically over spend. They all want a piece of these guys. To make sure they pay their ‘fair share’ of taxes. While they can before some career-ending injury puts an end to this gravy train. But because these players could lose millions in future career earnings because of a career-ending injury, they want to keep their money. For they may never be able to get another job. Sure, some may move into the front office. Some may move on to coaching. But few will earn the kind of money they did during their short careers. So they want to keep as much as they earn. To take care of their wife and kids. And have enough for their retirements. Which can be rather long for these worn out and injured bodies. So they just don’t sit by passively while every taxing authority is shaking them down for everything they’re worth.
The lion’s share of most players’ income, their salary, is taxed in the city and state where the team is based. But income from other sources, including endorsements, personal appearances, dividends and interest income, is taxed in their state of residence.
This is the reason New York Giants quarterback and Super Bowl MVP Eli Manning lives in Hoboken, N.J., instead of in the Big Apple. It’s simple arithmetic, says Raiola.
“If he were a resident of New York, he’d pay 8.97 percent New York state tax and another 3.78 percent New York City tax on top of that, not only on his wage income but also his endorsements and investment interest,” he says. “In New Jersey, he only pays 8.97 percent…”
Taxes — or the lack of them — may also have had something to do with NBA all-star and 2010 free agent LeBron James’ choice to play for the Miami Heat instead of the New York Knicks. Losi points to Florida’s lack of a state income tax.
“That may have been one of the factors that led LeBron to choose Florida versus New York,” says Losi. “Ten percent of his first contract was going to be the difference. For him, it was an extra 5 (percent to) 9 percent difference in tax. That’s real money.”
New York City may be the greatest city in the world but the rich pay an enormous amount of taxes to live there. So many chose not to. In fact, a lot of athletes chose where they live and raise their families based on their total tax burden.
Professional golfers, tennis players and other athletes who compete on the world stage often leave a third or more of their earnings in the local coffers.
“Whenever they play in foreign countries, they have to pay taxes in that jurisdiction, and the tax liability is much bigger than the 5 (percent) to 10 percent state tax. It’s usually in the 30 (percent) to 40 percent bracket,” says Losi. “Usually it’s withheld in their prize money, and they can file a nonresident return if they think they might have a refund coming.”
Because the United States is one of the few countries that taxes all personal income regardless of source, some pro sports stars who compete internationally actually have a financial disincentive to make their home in America.
“If they’re (not U.S. citizens or green card holders) and they’re not planning to stay here more than 183 days out of the year, from a tax perspective it absolutely makes sense to not live in the U.S.,” says Losi. “All the foreign golfers who come here to play, if they want all of their foreign prize money and endorsement money to be taxed, all they have to do is hang out here for 183 days.”
Being an athlete competing at the level that makes them millionaires is not an easy life. While others look forward to weekends, holidays and vacations to kick back and relax and recharge their batteries with copious amounts of alcohol and enormous quantities of fattening foods these athletes don’t. They often work on weekends and holidays. And when they’re not working they’re practicing. Where their practice is often more intense than their competition. This is their life. This is how they become elite athletes. And their reward? To be whacked open like a cash piñatas by the taxing authorities so the politicians they serve can take their money and spend it to buy votes for the next election. And forcing them to choose where to live based on who will penalized them the least for being really good at something.
This is not a meritocracy. Where we reward people for achievement. This is out of control government spending to maintain a privileged class. Politicians. And government workers. Who live and feed off of taxes. To fund their class warfare that makes these privileged few secure in their class.
Tags: 1%, athletes, career-ending injury, cash piñatas, earnings, fair share, fair share of taxes, favorite athletes, government spending, government workers, high taxes, New York, New York City, politician, privileged, privileged class, professional sports players, sports players, taxes, Wall Street
Week in Review
Advocates for national health care in the US like to point to Canada to their health care system. They say Canada has reached national health care utopia. And there’s no reason why the US can’t either. But it’s not really all that much of a utopia in Canada. For even the Canadians argue about money (see B.C. anesthesiologists threaten to pull services by The Canadian Press posted 3/13/2012 on CBC News).
A contract dispute involving a group of B.C. anesthesiologists has boiled over into name-calling between politicians and physicians…
The entire dispute revolves around the bargaining mechanism between doctors and the Health Ministry.
The B.C. Medical Association is the sole bargainer for the province’s 11,000 doctors, but the anesthesiologists’ society wants to negotiate its own issues at the bargaining table.
The group said its concerns include recruiting and retaining doctors, cutting waiting lists, patient safety and efficiencies in the system.
De Jong [Health Minister] believes the problem is much narrower.
“Let’s not kid ourselves, this is a dispute about money, and a group — not all, but a group — of anesthetists who want to hold patients hostage to secure more money for themselves,” the minister said…
Over the past decade, de Jong said anesthesiologists have received a 33 per cent wage increase compared to a 22 per cent pay hike for general practitioners. They make about $350,000 a year with little overhead, he said.
According to the anesthesiologists there is a shortage of doctors in Canada. Which results in poor patient care. And long waiting lists. And paying them more than $350,000 (about $353,000 US) will fix all of that. According to the BC Health Minister, the anesthesiologists are just greedy. Who use patients as pawns in their contract negotiations.
Canada is a lot smaller than the US. So you can imagine how ugly these ‘negotiations’ will be under Obamacare. The Obama administration will likely castigate doctors withholding their services as holding patients hostage, too. While attacking them for being part of that greedy 1% the Occupy Wall Street movements so hate. A movement, incidentally, supported by the current administration. To provide an enemy to attack as they can’t run for reelection on their record.
Of course, Obamacare may help the Canadian health care system. By providing a lot of highly skilled health care workers fleeing Obamacare for greener pastures under the Canadian system. For it is unlikely that the American system will let any of their doctors earn $353,000. Not when they’re attacking the evil 1%. Which, of course, will create poor patient care and long wait lists. Only worse than in Canada. Because the US is bigger than Canada. And has more patients to fill wait lists.
Tags: 1%, anesthesiologists, B.C. anesthesiologists, B.C. Health Ministry, Canada, Canadian health care system, Canadians, contract dispute, doctors, greedy 1%, National health care, Obamacare, physicians, politicians, poor patient care, shortage of doctors, waiting lists
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