Showing posts with label Taxes 2015. Show all posts
Showing posts with label Taxes 2015. Show all posts

Sunday, December 20, 2015

Conrad Black defends Donald Trump against the hysterics, and tells you what he's for


"What Donald actually advocates is the deportation of 351,000 illegal immigrants convicted of crimes and now imprisoned; the end of illegal immigration by building an Israeli-like wall along the Mexican border; an (as yet unspecified) screening process to justify the deportation of some of the illegals and the normalization of the others; and although he advocates the suspension already mentioned of Muslim immigration (not the Christians who are almost half of the refugees), he at least acknowledges that the United States is partly responsible for the political chaos that generated this humanitarian tragedy in the first place. He wants only a small increase in defence spending, reallocated to more effective anti-terrorism; and universal health care through health savings accounts and by smashing the insurance cartel. He is for the gradual legalization of most drugs; is a militant anti-polluter, but correctly (on present evidence) regards climate change and cap-and-trade as hoaxes. He wants to leave education (and same-sex marriage) to the states and to give them the money now wasted in the federal Department of Education. He would ban only late-term abortions, and not when there were overriding circumstances. He would reform the corrupt shambles of campaign financing by abolishing super-PACs and soft money, and lift limits on individual contributions to political candidates. He is a moderate protectionist opposite cheap labour countries, and advocates marginal income tax reductions and the reconstitution of the bloated national debt as a sinking fund to be gradually reduced by spending restraint, implicitly involving an imprecise level of entitlement-reform. Trump opposes foreign intervention in areas where the U.S. has no natural interest, including Ukraine and Syria, but wants a redefinition of the national security interest of the country, and wants to protect that interest, unlike Obama, but not over-extend it, unlike George W. Bush. This is not a radical program."

Tax package just passed will increase deficits by $68 billion annually

Reported here:

"The Joint Committee on Taxation (JCT) estimated that the tax bill will cost $622 billion over 10 years. Tax provisions in the omnibus will cost an additional $58 billion over 10 years, JCT said."

Saturday, October 31, 2015

The New York Times criticizes Republican tax plans, pretending revenues are needed to cover spending


"All of these candidates deny fiscal reality. In the next 10 years, revenues will need to increase by 40 percent simply to keep federal spending even, per capita, with inflation and population growth. Additional revenues will be needed to pay for health care for the elderly, transportation systems and other obligations, as well as for newer challenges, including climate change. And interest on the national debt will surely rise because interest rates have nowhere to go but up."

Who is the Times trying to kid?

Revenues have never been needed to cover expenditures and they know it, and rarely have covered expenditures. Expenditures will continue to grow whether the Times or the Republicans like it or not. They are baked into the cake of the legislation that drives them. The only way to fix that is to rescind the legislation or modify it, with its built-in cost of living increases and added population coverage assumptions.

This country has run minor annual surpluses in just twelve years since 1939, doing nothing but slowing down our present arrival at $18.2 trillion in debt.

Spare us the histrionics.

The heavy hitters when it comes to spending are:

  • HHS ($1 trillion, 91% of which is Medicare and Medicaid)
  • Social Security ($.96 trillion)
  • Defense ($.59 trillion, protecting the world without reimbursement)
  • Treasury Dept. ($.57 trillion, $.4 trillion of which is interest on the debt overspending)
  • Veterans ($.16 trillion, which does such a good job veterans die waiting for appointments)
  • Agriculture ($.14 trillion, over half of which is the food stamp program).


Together those six account for 88% of federal spending, and the Times dares the Republicans even to think about reforming Social Security and Medicare, calling instead for higher taxes.

Meanwhile there's plenty else to cut just by axing all the other departments which account for the remaining $.48 trillion making up the 2015 fiscal outlay total of $3.9 trillion.

Let's start with the Education Dept., $76 billion, then International Assistance Programs, $22 billion.

Ka-ching! Ka-ching! You're 20% of the way there, just like that.

See how easy that was?




Monday, October 26, 2015

The unending fascination of Sarah Palin for little Democrat minds

Dunderhead Democrat Party hack William Daley is stuck on stupid.

Here he is in full flutter in WaPo, like a moth drawn to a lightbulb, typing "The GOP’s dysfunction all started with Sarah Palin". It proves nothing but that it takes a dunderhead to know a dunderhead. The GOP has failed, he says, to distance itself from this simpleton who flunked Newspapers 101, and her ilk. Reading it one wonders when Democrats will distance themselves from ignoramuses like Bill Daley, but then you realize they're all ignoramuses. Where would they go?

Certainly not Chicago.  

Bill Daley, it must remembered, comes from the same Democrat family which presided over the decades long ruination of the finances of that once great city, and with it of the state. The place is now so bankrupt it can't even pay lottery winners. Those who can flee the state, do. Illinois ranks first in America for out-migration in 2014. These nincompoop Daleys are the same people who seriously thought they could afford to host the Summer Olympics next year, forgetting how all those $100,000+ pensions for unionized teachers can really add up. As it is Chicago's bonds have this year achieved junk status, despite the highest sales taxes in the nation and the highest property taxes of any state, save New Jersey. The place is teetering on the edge of bankruptcy because of perennially spendthrift Democrats.

In charge of the Department of Commerce under Bill Clinton, Bill Daley long ago proved his own incompetence. The man couldn't even manage to find a staffer at the Bureau of Economic Analysis to give him the correct figure for year 1900 gross domestic product in a 1999 speech commemorating the invention of the metric under FDR. Daley was only off by an order of magnitude and fifty years at the time, saying the year 1900 $20 billion economy was actually $300 billion in size, a level which it did not reach . . . until 1950! Bill Daley only ran the place. You'd think he could at least get its monthly claim to headline fame right.

But Democrats have good reason to forget the size of things, especially GDP. After all under them it took eleven long years to restore the 1929 $100 billion economy back to its size, in 1940. And presently the chief Democrat holding a veto pen in one hand and a copy of Rules for Radicals in the other is on schedule to produce the very worst GDP record since that Great Depression.

At least Sarah Palin has learned a few things along the way since her quixotic candidacy, for example rejecting the appropriateness of bailouts and crony capitalism. Democrats on the other hand have learned nothing, and only keep repeating the mistakes of the past.


Wednesday, October 21, 2015

Caroline Baum should be Treasury Secretary: She knows there's no reason even to think defaulting on the debt is possible

. . . unlike the rogues running the place currently, who are playing chicken with the full faith and credit of the US government.

Once again Caroline Baum cuts through the silliness and explains that there's plenty of revenue to pay what must be paid, here:

'The U.S. Treasury can’t cover all its monthly payments with incoming monthly revenue. But it can avoid default . . .. In any given month, the tax revenue flowing into the Treasury far exceeds interest payments — by a lot. Last month, for example, the Treasury took in $365 billion in tax receipts and made $21 billion in interest payments. For fiscal 2015, which ended Sept. 30, those figures are $3.2 trillion in tax receipts versus $402 billion in net interest. The U.S. government’s ability to service its debt — the principal can be rolled over — should not be an issue. But Treasury has made it one, claiming in 2011 and 2013 that it lacks the authority to prioritize debt payments, something households do all the time. ... [I]n written communications with the House Financial Services Committee in May 2014, the Treasury admitted that it would be “technologically capable” to prioritize debt payments.'

Wednesday, September 30, 2015

The Tax Foundation says Trump tax plan will blow up the deficit, reducing revenues to 12% of GDP

From Alan Cole, here:

"Looking at these rates, collectively, note that Mr. Trump is frequently cutting rates in half, and sometimes cutting them by even more than that. Taken together, these rate reductions are enough—by my estimates—to reduce tax collections from about 18 percent of GDP to about 12 percent. Under rates as low as these, economic growth—moderate or otherwise—cannot restore federal revenues to current-law levels.

"Tax cuts can do a great deal of good; each of the provisions I outlined above could help a lot of people lead better lives. However, the reductions in federal revenue need to be acknowledged, and likely mitigated through substantial cuts in spending, in order to make this plan feasible."

Larry Kudlow really likes the Donald Trump 15% corporate tax plan, saying he never thought he'd see it


'Kudlow, who hosts his own syndicated radio show, has long championed a 15 percent corporate tax rate, but "I never thought I'd see a candidate do it. "It'll give us a gigantic advantage. Bring capital and businesses to the U.S., make us the most hospitable place to invest — and that's what Donald Trump has done."'

Tuesday, September 29, 2015

CBS News claims Trump keeps the EITC

Here.

For the current 5-year period 2012-2016 the Joint Committee on Taxation has previously estimated the annual cost of the Earned Income Tax Credit to be about $64 billion.

That's actually less costly than the food stamp program was in 2014: $74.2 billion.

Keeping the EITC means keeping what amounts to a welfare program, but one which rewards only those who work. The transfer payments to such individuals basically rebate the Social Security taxes they pay even though they generally make too little to pay much in the way of federal income taxes, if they pay any at all.

Trump's claim that his plan will be revenue neutral is already taking incoming because of things like this.

Of course we don't know what spending Trump plans to cut. He might go really big and call for shuttering some cabinet level departments entirely. The Department of Education, for example, costs $77.4 billion.

Sean Trende spells out the achievements of John Boehner

Sean Trende notes that:

  • federal expenditures on a quarterly basis flatlined beginning in early 2011, right when Republicans took control of the House under Boehner, largely because of sequestration won in the debt ceiling showdown that year despite controlling only one chamber of Congress, "no small feat";


  • even "more impressive" was the fiscal cliff deal brokered by John Boehner in late 2012, making the Bush tax cuts permanent, again with control of only the House of Representatives;


  • Boehner "managed to kill" the immigration bill that came out of Mitch McConnell's US Senate, despite "substantial internal pressures" all around to pass it.


Much more at the link.


Monday, September 28, 2015

Trump's tax plan released to the public today is ambitious and pro-growth

The Trump tax plan can be reviewed here.

Notable features include exemption from federal income taxation entirely for up to about 73 million households who make up to either $25,000 individually or $50,000 jointly.

This is in the spirit of the original income tax law, which for its first few years, that is until the demands of World War I and the bureaucratic state came into play, taxed the incomes of no one except the very wealthiest.

It is unclear whether the plan retains the child tax credit or the earned income tax credit, two programs which effectively transfer welfare to lower income families who pay no income tax anyway and who receive through these two vehicles what is effectively a rebate of Social Security taxes they pay as employees, eliminating its regressivity.

For the rest there are just three tax brackets of 10%, 20% and 25%, kicking in at joint incomes up to $100K, up to $300K and beyond $300K. Presumably, but not stated, short term capital gains are taxed at these ordinary rates. Long term capital gains tax rates are 0% up to $100K of joint income, then 15% and 20% up to $300K and beyond $300K of joint income.

Business taxes are slashed to 15% no matter the size, which is YUGE for American competitiveness.

The AMT is eliminated entirely, along with the marriage penalty and . . . the death tax. It's going to be unbelievable!

Deductions are capped for the richest Americans, but deductions for charity and mortgage interest are retained.

We'll see what the dynamic scorers will have to say about it for revenues, as time goes by.

Saturday, September 26, 2015

Conservatives give thanks for the achievements of John Boehner, libertarians, the ignorant and the stupid just snarl


  • Saved taxpayers $762 billion over ten years by making the Bush tax rates permanent for 98% of all filers beginning at the dawn of 2013
  • Saved taxpayers $1.8 trillion over ten years by finally fixing the Alternative Minimum Tax for all victims of bracket-creep
  • Saved taxpayers $339 billion over ten years by maintaining the 15% capital gains tax rate for incomes below $450,000
  • Saved families $354 billion over ten years by maintaining the child tax credit
  • Cut average annual federal deficits of $1.3 trillion 2009-2012 by 57%, to $556 billion on average 2013-2016 by ending the emergency Social Security Tax reductions and instituting the sequester spending cuts
  • The S&P 500 immediately responded with total returns in 2013 of 32.39%, the fifth best year since 1970  
  • The moribund US Dollar rose 19%, from below 80 to 95 today as overall fiscal rectitude improved
  • Causing oil prices to plummet from an average of $95/barrel 2011-2014 to $52/barrel on average in 2015 
  • Causing average US gasoline prices to fall from $3.34/gallon one year ago to $2.28/gallon today
  • Helping to keep the all-items consumer price index year-over-year nearly flat, rising just 0.2%

Friday, September 25, 2015

Politico lies about what John Boehner and Barack Obama accomplished together


"But [Boehner's] tenure will also be remembered for his complicated relationship with President Barack Obama. He and Obama tried — but repeatedly failed — to cut a deal on a sweeping fiscal agreement."

Boehner got the Bush tax cuts made permanent, and under a Democrat president no less, something Bush couldn't do while he himself was president. If I were Politico I wouldn't mention it, either.

Boehner also got the fix to the Alternative Minimum Tax made permanent, something which eluded Republicans for decades, again under a Democrat president.

Passed at the very opening to 2013, the stock market boomed as a result, tax revenues recovered and the dollar soared from 80 to 95ish today, helping to tank oil prices, for which each and every American should be grateful everytime he fills the gas tank.

"Repeatedly failed"?

Utter nonsense.


Friday, September 18, 2015

Rush Limbaugh can't remember shit about taxes under Reagan: Why do we listen to this guy?


Here yesterday, wrong on both years, and forgetting that G. H. W. Bush raised taxes by adding a 31% bracket in 1991, getting himself defeated by Clinton in 1992:


"What did Ronald Reagan do? When Ronald Reagan took office in 1981 the top marginal tax rate was 90%. And the amount of money raised by the tax code was about $500 billion back then. When Reagan left office in 1989, there were three tax rates, essentially two, but there was a 31% bubble in there. But the top 90%, that marginal rate of 90% had been dropped to 28%. And the amount of money generated by the tax code had doubled, almost a billion dollars, by reducing tax rates."







Revenues in 1981 were $599.3 billion nominal, in 1989 $991.1 billion, up 65%, not 100%. Revenues did not double until 1993-1994, after Bush and then Clinton raised marginal rates as high as 39.6%. Revenues did not double again until 2006. The record shows that whether marginal rates were higher or lower, revenues took twelve to thirteen years to double.

What Rush Limbaugh means by "doubled, almost a billion dollars" is anybody's guess. Only his pharmacist knows for sure.


The facts are that Ronald Reagan persuaded Democrats to bring the top marginal rate down from 70% in 1981 to 50% 1982-1986. After the tax reform of 1986 the top marginal rate dropped to 38.5% in 1987. For three years 1988 through 1990 there were just two marginal rates: 15% and 28%. That was the brief golden age of taxation under Reagan, which his successor totally screwed up.

Reagan had NOTHING to do with the introduction of a 31% bracket. That was all on George Herbert Walker Bush, for which the Democrats recently gave him the Profiles in Courage Award.


Thursday, September 17, 2015

Charles Cook embraces the impotence of contemporary conservatism faced with Donald Trump

Where else but in National Review here, the locus of conservatism as ineffectual cult and ideology, which finds it impossible to revolt against anything except for the rebels:

"As it happens, Trump’s critics do grasp the appeal [of revolt]. What they do not do, however, is act upon it in this manner. The temptation to deliver a bloody nose to one’s ideological enemies is a human and comprehensible one, by no means limited in its allure to the disgruntled part of the Republican primary electorate. But temptation and reasonable conduct are two separate things entirely, and they should always be treated as such. Can one understand the instinct that is on display? Sure. Can one look beneath the surface and do anything other than despair? I’m afraid not. Such as they are, the explanations provided by Trump’s discordant choir are entirely risible and easily dismantled. Great, you’re annoyed! But then what?"

He's obviously proud of it. In 1776 he'd be called a royalist.

Was taking up arms against England "reasonable conduct"? Only a Catholic sensibility could fail to grasp the point. "But then what?" Well, a long war of several years, full of privations and without guaranty of success, followed by another long period of several years preparing for and culminating in a constitutional convention, during which local and colonial institutions were strong enough to support the absence of a centralized framework. The same is still true today, if only the locals more frequently told the federal courts to go to hell, as the Kentucky county clerk recently did.

By definition, an ideology ought to have some ideas in it which form a system, and should be, when all is said and done, unrealistic. That pretty much describes American conservatism since forever: unable to roll back anything, including the income tax, direct election of Senators, universal suffrage, the Federal Reserve Act, the Reapportionment Act of 1929, Social Security, Medicare, the minimum wage, Obamacare, and the enormous regulatory code, and unable to permanently refound the country on any constitutional principles, say, of limited government or separation of powers. Conservatism has a massive record of zero achievement while liberalism's untruths keep marching on like tanks in Tiananmen Square.

Trump's camp, meanwhile, thinks three modest things: the way to make America great again is to restore law and order by starting with enforcing its borders and putting an end to illegal immigration, to bring jobs back to Americans by reforming the tax code, developing energy independence, cutting wasteful spending and punishing unpatriotic corporations who profit from exporting jobs, and to rebuild the military to protect freedom at home and for our friends and allies abroad.

It takes near religious nuttery to call the proponent of these measures "a self-interested narcissist and serial heretic whose entirely inchoate political platform bends cynically to the demands of the moment."

To understand Trump, it takes a village . . . of Protestants.

Thursday, September 10, 2015

Jeb Bush the snake: omitted plan to cap itemized deductions in Wall Street Journal tax op-ed

Reported here:

"But the full plan includes one very significant change not mentioned in the Wall Street Journal op-ed where Bush announced his plan—one that would likely raise more than a trillion dollars in revenue over a decade, and secretly accomplish a policy goal sought by everyone from President Obama to Paul Ryan. The change: Bush wants to limit itemized deductions sharply, capping them at 2 percent of aggregate gross income, and eliminate the deduction for state and local taxes entirely. (The exception would be the deduction for charitable giving, which is politically toxic to attack, and would still be unlimited.) ...

"But it’s the politics of the cap that make it really interesting. If you look at who would actually be affected, it appears that the cap is a very benign-sounding way to do something politically difficult: limit the mortgage-interest deduction. Of the $54 billion a year the cap would raise according to the Feldstein estimate, $46 billion comes out of the mortgage interest deduction."

Friday, July 24, 2015

Insane Hillary Clinton proposes Chinese Communist Party-style interference in free-markets, obliterating short term/long term holding definition

current law says long term holding begins after 365 days
law under Hillary extends that to six years

Story here.

Sounds similar to the Chinese Communist Party recently telling investors they cannot sell. 

Tuesday, July 7, 2015

Republicans ruined the Republican brand long before Donald Trump came along

Read my lips, no new taxes
Compromise is not a bad word
I have abandoned free market principles
We have nothing to fear from a President Obama
ObamaCare's not worth getting angry about

Wednesday, May 20, 2015

State budget funding gaps and low reserves are the evidence of the nation's growing poverty under Obama

Like the people in general who have experienced their median annual household income fall below 2000, 2007 and 2009 levels, the majority of states now have less to spend in real terms as tax revenues decline and have less in reserve for a crisis, having plundered their savings to make up for the shortfalls.

Bloomberg reports here:

Thirty-two states faced budget gaps in fiscal 2015 or 2016 or both, according to an April 27 report by Standard & Poors. The fiscal year ends June 30 in all but four states. ... State governments have about half the reserves that they had before the recession, according to the Pew Charitable Trusts. ... A dozen states still haven’t recovered all jobs lost since the start of the downturn in December 2007 . . . Aggregate general-fund revenue and spending haven’t rebounded to inflation-adjusted fiscal 2008 levels, according to a survey by the State Budget Officers released in December. Revenue of $748 billion for fiscal 2015 would have to be $15 billion higher to match real 2008 levels, the group said.

Tuesday, May 19, 2015

Libertarianism in Michigan now means smokers and drinkers pay 111% more in taxes than businesses

A fine how-do-you-do from the ménage à trois between Republican libertarianism, Democrat liberalism and the dry Dutch.

The Detroit News reports here:

Revenue from so-called sin taxes on tobacco, beer, wine and liquor totaled $290.5 million in the 2014 fiscal year, more than twice the $137.6 million net income taxes paid by Michigan businesses after receiving $768.8 million in refunds from tax credits, a Detroit News analysis of tax data shows.

Since Gov. Rick Snyder and lawmakers delivered sweeping tax relief for businesses in 2011, net business income taxes dropped 90 percent, depleting the state's main operating fund of $1.33 billion, according to state revenue data.

The percentage of general fund revenue from business income taxes also has plunged as tax credit payouts to companies have soared. Tax data show business income tax receipts declined from 21 percent of the general fund revenue a decade ago to about 2 percent last year. ... Last year, the balance of business income taxes as a share of general revenue began to turn when companies holding tax credits triggered a surge in refunds, from $75.8 million in 2013 to $723.3 million in 2014. The Democratic administration of former Gov. Jennifer Granholm was responsible for most of the state's surge in handing out tax credits to businesses.

Sunday, May 10, 2015

Sixty percent of the states still collect less revenue than before the 2007 recession

From an Associated Press story here:

A majority of states have failed to climb back to their pre-recession status, in terms of tax revenue, financial reserves and employment rates, said Barb Rosewicz, who tracks the fiscal health of states for The Pew Charitable Trusts. ... Nationally, total tax revenue coming to the states has been rising, but the pace has been slow as employment continues to lag pre-recession levels in more than half the states, according to the Pew Charitable Trusts. Pew also found that 30 states are collecting less revenue than at their peak.