Archive for the ‘savings’ Category

Follow the Bouncing Tax Ball – Obama Style

October 30, 2008

During 2008 Obama has pressed lowering taxes and sharing the wealth.  What has happened however, is that the income to not get an increase has gone from $1 million (in the Spring) down to $500,000, then down to $250,000, then $200,000 and then $150,000.

I see a trend here.  And worse, what Obama is NOT saying is that there will be other taxes – oh so many.  Forget the death taxes, the capital gains taxes and let’s just look at the taxes piled atop an increased income tax.  The income tax will go to about 40% (for what income level we can’t be sure since it keeps dipping downward) – but on top of that will be increases in social security tax and medicare tax, taking those of you at some rate about $150,000 (or lower) up to nearly 50% !!  That is ONE HALF OF EVERY DOLLAR MADE GOES TO THE GOVERNMENT to be used to pay for welfare programs and entitlements for those who don’t work.  Now I realize some of those on welfare really need it due to disability, illness etc.  No one begrudges them assistance.  But what about the billions of people who have been on the dole for decades and see no need to work? 

The loss of half of one’s income will make a huge difference in one’s ability to support their family, possible only with a major change in lifestyle.  And keep in mind that this near 50% is FEDERAL taxation and does not include sales tax, state taxes, property taxes etc.  Some people could find themselves at well over 60% taken out of their paychecks. 

If one lives in most of the East, $250,000 is hardly wealthy due to the cost of living (i.e. $4000 a month rent for a tiny apartment in Manhattan or Boston, or in the West in San Francisco or Los Angeles).  It might be a comfortable income in Iowa or Nebraska, or Mississippi, but still, 60% taxation?  Outrageous!!

With all that however, economic experts have run the numbers and have determined that it is virtually impossible to give 40% of the population (those who pay no taxes) a $500-1000 a year check, pay for all the added welfare and social programs Obama indicates he will deliver) on the backs of those uber-rich and the upper middle class. 

What does that mean?  It means that most everyone is going to see tax increases – it is a Fact of Life in an Obama world.  How many entrepreneurs are going to expand business, hire new employees and increase sales under such enormous tax penalty??  NEXT TO NONE

The choise is clear on so many levels – security, cleaning up waste in government, taxation, our economy and its growth, honesty, and an open and transparent government dedicated to Free Speech and total accountability    VERSUS  an administration of secrecy, limited powers under control of a handful of people, restrictions on free speech, increased taxes, declining productivity, increased unemployment, and serious risk and exposure to foreign attack (economic, terrorism and ideological). 

YOUR 401K – where it may well be headed

October 28, 2008

If you have a 401K you are not going to like this one.

As with most everything about Obama, this tidbit made a tiny corner of the news – a passing comment that caught my eye. 

Obama and the Democrats want to seize control of your 401K – take your money and issue you bonds at a value equal to pre-market explosion (August).  You would be required to pay 5% of your paycheck into your bond fund.  And the government has use of your money to do with as they choose. 

When you retire (the age for retirement will be extended) you will be given a single check for the amount you had, plus THREE % interest compounded annually, plus the 5% you were required to put into the bond fund.

ZIP – that’s it folks.  That is your retirement.  No more investing, no more employer matching funds.  You get bonds, and with a good deal of luck, they may be able to pay on them years hence.  Or not.

And of course, if you have money in the market and determine that you should sell, because of market activities, or you need some money in your retirement – you will be HIT and HIT HARD with capital gains taxes in the neighborhood of 37% !

Now, does this not sound like you can’t win – no matter what you do, no matter how hard you work and save?  It sure does ot me.  And it sure as hell sounds like Marxism too.