Greetings, Greetings! It's been awhile since I've posted... can't really think of much to say, except that Life has felt like a speeding bullet. As soon as I think I see the light at the end of the tunnel, I realize... it's actually a train.

Below is a government assignment on taxes... something I tend to get a little carried away with. Haha, oh well. Gives the teacher something to do. :P


                                                                  Current Events
Title of Article: Taxmageddon Will Hit on January 1, 2013
Date of Article: 4/14 (#1) 4/10) #2
Sources: #1: Vision To America; #2: Becket Adams, www.theblaze.com
Web Address: http://visiontoamerica.org/9222/taxmageddon-will-hit-on-january-1-2013/

http://www.theblaze.com/stories/we-believe-in-free-enterprise-see-excerpts-from-george-w-bushs-rare-public-speech/

Summary of Article:

Article 1: This article runs a quick summary of the additional taxes that the average Joe will have to pay in another year. The Bush tax cuts expire on January 1st of next year, and then the Obamacare taxes hit, unless the Supreme Court declares the law unconstitutional.

Article 2: Former President Bush Advises growing the private sector as opposed to the public sector- which equates to less taxes. Bush encourages a smaller government, and more individual initiative fueled by private sector growth.


Your Thoughts:


“‘Taxmageddon’ has a sense of reality about it.”
No kidding.
If the average American complains about taxes now, just wait until next tax season rolls around! How’s that “Hope and Change” coming? Well, a whole lot more ‘Change’ in the government’s pocket is what I say! We can only hope that Obama will not get reelected and that the new President will have new (and less restrictive!) policies in store.

Let’s take a look at the changes in more depth:
The 2001 and 2003 Bush tax cuts will expire, and Taxes on investment income, estate and gift taxes, income taxes. The tax on the first $8700 of wages will increase by 50%, and payroll taxes will increase 48% as well.  In addition, the marriage penalty returns, and child credit also drops. Additional taxes include the Alternative Minimum Tax (AMT), 5 new Obamacare taxes, and 50 tax extenders will no longer be in effect, and small business owners can no longer write off business equipment purchases immediately.

Wow! Boy, the administration sure had fun there, didn’t it? Man, you want more money? Just raise taxes! I mean, they are BROKE after all... Unfortunately, this is greatly going to reduce the spending power of the American consumer, which is going to mean that the average consumer is not going to contribute to the economy by displaying their spending power as freely in the future. This can go one of two ways: Either the economy is going to go downhill while the consumer only spends what he needs, and the government keeps spending money overseas, or else the government will pour money back into the economy by offering consumers broader choices.  Which isn’t going to have much effect if the consumer doesn’t have much money to begin with.

In the words of Former President bush, if you want to grow the public sector “Raise taxes”.  Public sector growth is controlled by the government, so growing the public sector basically means growing government- which is precisely NOT what America needs right now.  Growing the private sector means growing entrepreneurship, private employers, small businesses... in short, growing jobs.  Raising taxes on the entrepreneurs the “so-called rich, you’re really raising taxes on the job creators”.  We have to leave capital, “in the treasuries of the job creators,” says Bush.  And how right he is.  Take away capital from the private sector, you take away the opportunity for job expansion, and business growth.  Which in turn takes away from the consumer, both in opportunity for income, and in choice. Raise taxes on the private sector and the government starts running a contractionary monetary policy, which is going to take money out of consumer’s pockets.

And the best part? Because the U.S. tax code is so complicated, and often hinders the private sector, this is one of the main reasons why they choose to outsource- taking away job opportunities and economy growth for the American.


Importance of Article:


The first article simply mentions all the new taxes coming into effect next year, and puts a bit of perspective on how many ore taxes the average American is going to have to pay. We’re going to be losing a lot.. and paying a whole heck of a lot more.  It especially puts some perspective on how complicated our tax code is, if one of the reason we have LESS jobs in this country is because of our governments tax code being so darn complicated.  Nearly every single economic law is being broken here.
The second article states the importance of growing the private sector and hints at the detrimental effect that taxing the “rich” (Private sector) is going to have on the American economy. As long as the government continues to regulate and tax the job sector, there is going to be less growth, more government, less job opportunity... and less money in the consumers pocket.
I predict the economy quickly going downhill next year if these changes take effect.
On a lighter note, let’s hope that the Supreme does its job and rules the whole plan unconstitutional.  Even the the Bush tax cuts end, at least we won’t get all the additional taxes supposedly being instituted by Obamacare.

Then again, if the object of the government is to break the American economy, I’d have to say that they’re doing a pretty good job of putting their priorities in the right place.

Guess it all depends on what your goals are.


Sincerely your average American consumer,


KnightRanger ;)