Tuesday, November 26, 2013

Progressives & Taxes - How much is enough? At what point will the government decide I've paid enough taxes?

A conversation on Taxes – Courtesy of my friend Mark Gott.

Okay, here is my question for progressives: How much is enough? At what point will the government decide I've paid enough taxes?

Currently, many of us already pay:

1) Income tax (13-28% depending on income).
2) Real estate taxes (generally thousands each year to support schools, police/fire which are all good things).
3) State income tax 8% in NC?? – (which I note will be reduced next year under McCrory & NC Legislature Tax Reform).
4) FICA 7.5% (which is a tax since there is no trust fund.
5) SALES tax in Mecklenburg County is near 10% if you add in State and County taxes together).
6) GAS tax of .37 per gallon.
7) Vehicle registrations and PERSONAL property taxes.
8) Capital Gains Tax (15% - 20%).
9) Landline Phone Tax.
10) Cell phone tax (some of the money goes to give free phones to others).
11) Cable TV Taxes (11% to 20% depending on locality).
12) Utility taxes on Gas, Electricity, and Water.
13) And NOW – Thanks to ObamaCare – taxes on a laundry list of over the counter drugs & Medical Devises.
14) – Introducing the All New & Improved Wealth Transfer Tax – AKA ObamaCare . That's right; the increases in Healthcare premiums from the ACA are certainly a tax; a FACT that the Obama Administration stated and argued in front of the Supreme Court in order to ensure the law would not be struck down as unconstitutional. They now  continue to lie to the American People by insisting it is not a tax.

Depending on what state you live in; the increase STRICTLY attributed to The Act ranges from 18% to 70% (the average nationwide will be 41%). SPECIAL NOTE – You will not receive anything more for that money. Your increased dollars will be diverted to pay for insurance for those who don’t have or earn enough money to get their own insurance.

A Subtext of TOTAL IRONY IS…
In 2012, younger voters overwhelmingly supported President Obama, while older voters backed Mitt Romney. Obamacare, in the average state, is a massive transfer of wealth from the young to the old.

So How Much do Americans Pay in Total Taxes? It's a bit of a moving target - but here is a solid real-life example.

Here is a pie-chart from an Online Tax Calculator. This is based on a married couple of 2 – with 2 children; living in Mecklenburg County, NC – total gross income of $92k and average utility bills, gas bills, cable TV, internet, gasoline purchases, medical expenses, groceries, monthly healthcare premiums of $1,200 (which is less than what my family pays by the way), etc.

Note – when you take into account an average mortgage in Mecklenburg County ($1,500) and their basic cost of living, including one car payment of $250 per month – there is less than 3% of their income left over each month to put in savings. There is no extra money for vacations or monthly entertainment expense.

In other words – the basic cost of living expenses combined with the taxes paid – leaves nothing left over for savings or family fun. $90k to $100k per year is now Lower-Middle Class.

In the meantime – we are running up National Debts we may never be able to pay back. Our current National Debt per person in the United States is - $54,296. That’s $ 54,296 for every man, woman and child currently living in the United States.

This doesn’t even begin to count the total unfunded Liabilities of the US that come in a whopping titanic $86.8 trillion liability from these programs? These are the currently and conservatively calculated future costs of all our Entitlement Programs.

Why haven't Americans heard about the titanic $86.8 trillion liability from these programs? One reason: The actual figures do not appear in black and white on any balance sheet. But it is possible to discover them. Included in the annual Medicare Trustees' report are separate actuarial estimates of the unfunded liability for Medicare Part A (the hospital portion), Part B (medical insurance) and Part D (prescription drug coverage).

As of the most recent Trustees' report in April, the net present value of the unfunded liability of Medicare was $42.8 trillion. The comparable balance sheet liability for Social Security is $20.5 trillion. (See Cox & Archer WSJ article linked below).

We are not edging toward a Socialist Economy – 
it is safe to say that we have already arrived there!

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