Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Tuesday, October 4, 2016

I Don't Care If Trump Paid Income Tax

I'm a retiree getting by on Social Security and a state pension, but I don't care if Donald Trump didn't send a payment when he filed his federal income tax.   I didn't send in a federal income tax payment either.  I didn't have enough potentially taxable income to owe an income tax, but that doesn't mean none of my income went to the Internal Revenue Service.   

Simple minded Hillary Clinton has the same problem understanding our tax system that Mitt Romney demonstrated four years ago.   They both ignore the indirect or hidden taxes we all pay regardless of income.  They don't understand what the late commentator Paul Harvey  would call the rest of the story.

The income tax isn't the only federal tax. The federal government also taxes services like land line telephones and products like gasoline. 

Trump may not have paid taxes on his personal income, but money he paid to his employees paid their income tax.    The people he purchased goods and services from paid income taxes.  It's more important for Trump to pass along his money to employees and various vendors so they can pay taxes then to pay income taxes himself.

Wednesday, March 28, 2012

Should Christians Support the Greedy Rich

I recently watched an old episode of my mom's favorite television show, the "Billy Graham Crusades". Dr. Graham surprised me with some of his comments about the Biblical city of Sodom. He said that greed was one of the sins of the people of Sodom. According to Ezekiel 16:49 - "Now this was the sin of your sister Sodom: She and her daughters were arrogant, overfed and unconcerned; they did not help the poor and needy."

Many members of the Republican Party have a problem with this same sin. So why do Christians in the Republican Party encourage this sin by supporting low taxes for those with high incomes? Why do Christians support Republicans who don't believe in helping the poor?

Sodom isn't the only Biblical location whose residents were punished by God for mistreating the poor. The Israeli prophets warned the leaders of Israel about the consequences of mistreating the poor before wealthy Israelites were taken into captivity and the land left to the poor.

Ezekiel 22:12 - "you take interest and make a profit from the poor. You extort unjust gain from your neighbors. And you have forgotten me, declares the Sovereign LORD."

Amos 4:1 - "Hear this word, you cows of Bashan on Mount Samaria, you women who oppress the poor and crush the needy and say to your husbands, “Bring us some drinks!”

Amos 5:11 - "You levy a straw tax on the poor and impose a tax on their grain. Therefore, though you have built stone mansions, you will not live in them; though you have planted lush vineyards, you will not drink their wine."

Luke and other gospels carry a statement by Jesus about the problem facing the rich. " Jesus looked at him and said, “How hard it is for the rich to enter the kingdom of God! Indeed, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the kingdom of God." Luke 18:24-5

Preachers often suggest the camel analogy is about something large going through a tight opening. The analogy is more likely a camel saying like the "straw that broke the camel's back" or what happens if someone lets a camel get its head inside a tent. People of that era likely used the task of getting a camel through the eye of a needle as a way to determine how difficult the task was.

The problem with getting a camel through the eye of a needle is the shape of the animal and its sometimes uncooperative nature. The long neck, legs and hump means the task isn't simple even with a very large needle. Keep in mind that a needle has a long portion connected to the eye.

Christian Republicans need to recognize that abortion and sexual morality aren't the only moral issues in politics. Mistreatment of the poor and how the rich acquire wealth are at least as important. Christians need to move away from the greedy Republicans who believe the rich should escape the taxes needed to fund government.

Tuesday, August 16, 2011

S & P's Decision Appears Justified

Standard and Poor's decision to downgrade the U.S. debt rating appears justified because of the inadequacy of the U.S. response to the debt issue. Allowing the U.S. to keep the top rating would falsely indicate the U.S. is doing the best it can to correct its debt problem. American voters are choosing politicians who lack the ability or willingness to deal realistically with the U.S. debt problem.

I waited to write about Standard and Poor's decision to downgrade the U.S. debt rating because I wanted to think about it for awhile instead of taking a knee jerk reaction.

Dealing with a major crisis requires a strong experienced president. Unfortunately, Barack Obama is the weakest president since Gerald Ford. Obama's only apparent skill is an ability to read a teleprompter.

A smart president would have recognized he couldn't change the minds of House members and ended the debate early so he could prepare for a return match later.

Obama won the election because neither the voters nor the media understand the qualifications for an effective president. The President is the chief executive officer of the most powerful country in the world. Electing an president without executive experience makes no more sense then asking a high school quarterback to play quarterback in the Super Bowl.

Too many voters will support someone who promises to do "this, that and the other thing" even though the candidate has never demonstrated an ability to deliver on his promises. It's easy to make promises, but delivering on those promises can be difficult. Any quarterback can say he will win the Super Bowl, but very few are capable of doing so.

Unfortunately, many Republicans want to make the same mistake the Democrats did. These Republicans support Michele Bachmann who is just as inexperienced and unprepared for the presidency as Obama was.

The deficit debate was what we used to call the game of chicken. Two cars would approach each other in the same lane. The driver who veered off first was "chicken". Both sides seemed more interested in scoring political points than in conducting a serious discussion of the issue. They reminded me of the old beer commercials in which one side yelled "less filling" and the other side yelled "great taste".

One editorial cartoonist suggested the old Looney Tunes cartoon debate in which Daffy Duck says "Rabbit Season" and Bugs Bunny says "Duck Season". Bugs eventually gets Daffy to say "Duck Season", but Obama doesn't have Bugs Bunny's ability.

Too many members of Congress are either incapable of understanding the nature of the deficit crisis or don't care about dealing with the deficit in a realistic manner. Fixing the deficit will require an increase in revenue, preferably a tax on those with surplus income.

Cutting spending won't reduce the deficit as much as some expect because the federal government gets a kickback in the form of Social Security and income taxes from those it employs or from businesses government, and its employees, purchases from. Money given to welfare recipients goes to those they purchase goods and services from who in turn pay taxes.

If unemployment increases due to spending cuts, the next Congress may feel it needs to spend even more borrowed money to stimulate the economy.

Republicans and their supporters seem incapable of understanding the fact that it is not the amount of money someone has, but the financial status of the United States that is important. The financial health of the U.S. determines what its money is worth. For the rich, taxes are an investment in the financial health of the United States. Reducing the deficit would improve the financial health of the U.S. and make the money the rich have worth more.

There is a danger if the "rich" have too much money. Money can be addictive. As people obtain a certain amount of money they start wanting more and more. Like alcoholics they need more and more money to be satisfied.

When the "rich" obtain too much money a boom psychology can develop in which investors ignore the possibility of risk. They don't think they can lose money. They may think the stock market can only go up as many believed in the 20's.

The crisis of 2008 occurred because the rich had too much money and had bid stock prices up too high because too many expected everything to go up "forever". Many invested money in garbage like mortgage derivatives or gave it to crooks like Bernie Madoff who promised to make them even richer. If they had invested it in taxes, the country's financial health would be better today and many of them wouldn't have lost so much.

Talk about defaulting on debts incurred in the past raises concerns that the U.S. might default on newer debts. Those who started working 40 some years ago were told the Social Security taxes they were paying were for a pension program. They were loaning money to the federal government in return for a promise to provide them with retirement income. Congress may have handled Social Security funds like the program was a Ponzi scheme, but "investors" (Social Security taxpayers) were told they were investing in a pension plan.

Social Security and Medicare are debts, not entitlements. Benefits go to those who have paid in advance for them.

If the current Congress decides to default on the promise of Social Security payments to those who will be retiring in the next few years because the program was poorly administered by previous Congresses, how can those who purchase U.S. government securities today be sure that a future Congress won't decide to default on that debt because Congress in 2011 was not borrowing responsibly.

Tuesday, November 23, 2010

Lame Duck Session May Do Nothing

Those who are expecting the Lame Duck session of Congress to deal with controversial issues like taxes and immigration may be disappointed. The lame duck Democrats who lost their reelection bids may not have to worry about voter reaction to their votes, but the Senators racing reelection in 2012 have a lot to worry about.

Senate Democrats up for reelection in 2012 may prefer to avoid dealing with any controversial issues because a vote either way could reduce the chance of being reelected. A Democrat who votes one way on an issue could motivate a strong Republican to run in 2012. A vote the other way might provoke a fellow Democrat to challenge in the primary.

The Democrats who were first elected in 2006 have the most to worry about because voters chose them more to protest President George W. Bush than from any real support for the Democratic Party.

Those facing reelection in 2012 will be in the spotlight during the lame duck session. No one cares what the lame ducks do. There won't be much interest in those Senators up for reelection in 2014

After the new Congress takes over in January some of the media attention will shift to the House and the new Republican Senators.