The biggest tax hike since WWII

What most people don’t know is that our government has swindled us out of a lot of money that OUR founders didn’t intend.

The reason is, they will say, by the choice and voice of the people.

For example, the income tax.  It was never intended to be a tax that people would have to pay on money that they receive from “employers”.  Employers pay the CORRECT (intended tax).  As a person who works FOR a company, that individual only creates LABOR and not a product.  The income tax, as it was proposed by the forefathers EXEMPTED individual labor.  It was never considered.  To some degree, one could think of “capital gains” taxes as the actual TAX that the forefathers intended.

Another example is the property tax.  This was instituted very recently, something like the 1950’s or 60’s.  (I am not a economist nor a historian so I’m not sure of the dates.  I do know that it happened and we are much worse off for it. ) It was NOT intended by the forefathers —- AT ALL.  They would have turned in their graves, because that is something that was part of why the War of Independence took place.  With a property tax in place by the government, one NEVER owns ones land.  The person is really just LEASING it from the government.  That land can be taken away.  The LAW that governs it was copied, almost verbatim, from the feudal land rights of Europe.  The people don’t own the land.  The government does.  The people lease the land.  The Real Estate TAX was drafted from the laws that Europe has pertaining it.  This was, in my opinion, the second largest swindle that the AMERICAN government perpetrated on “THE PEOPLE.”  The first was that money would no longer be tied to gold.  The rape of the American people began almost a decade after the founding of this Republic.  The government behemoth has been growing at the dismay and groaning of it’s people.

 

Tax Foundation

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A picture says a thousand words.  This is the government.  Left or Right.  It doesn’t matter when it comes to the idea of power.  The government will never vote to shrink it self.  There is no incentive to loose your job in Washington.  Maybe that should be something to consider.  The government should be virtually eliminated and the jobs should be only open to people who have accomplished those things that the positions require. But that another can of worms.  We have plenty of worms with the Brady Bunch below.

 

In January 2009, President of the United State...

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The Biggest Tax Hike Ever? It Depends on Who You Ask

 

By Ed Barnes

Published October 12, 2010

| FoxNews.com

 

CALCULATOR

Is America headed for its biggest tax hike since World War II?

The answer, nonpartisan fiscal watchdogs say, is yes — but with a big “if” and a few caveats.

If Congress returns after the Nov. 2 midterm elections and does nothing, allowing the Bush tax cuts to expire, then New Year’s Day will usher in the nation’s biggest tax increase since the end of World War II, according to Bill Ahern, spokesman for the Tax Foundation, a nonpartisan tax monitoring group.

“If nothing happens in Congress — and that is a possibility — and all the tax cuts are allowed to expire, the median American family will see a smaller paycheck and a tax increase of $1,540 on January 1,” Ahern said.

And that could be just a start.

“If there is total gridlock, then there will be additional tax breaks that will expire not connected to the Bush cuts,” he said, noting that if this happens, then Americans’ taxes would grow higher. Among those are the “patch” to the Alternative Minimum Tax (AMT), the estate tax and a host of temporary tax cuts the Obama administrationimplemented as part of the stimulus package.

“Not patching the AMT would cost an additional $70 billion” to taxpayers, Ahern said.

Expiration of Bush Tax Cuts: How It Will Affect You

Joseph Thorndyke, an independent economist who is working on a history of American taxation, agrees. He said legislative gridlock would probably spark the largest tax increase since the 1940s.

“This will represent 2 percent of GDP, and the only comparable one since the war would be the Reagan tax hikes, which amounted to 1.6 percent of GDP,” he said.

The problem — or the solution, experts say — is that neither the Democrats nor the Republicans in Congress want all the Bush tax cuts to expire. The Obama administration wants to renew all the cuts except those for individuals who make more than $200,000, or families that make more than $250,000 annually. That would mean a tax increase of $7 billion — but it wouldn’t be one for the record books.

And Republicans, who are in the minority in both the Senate and the House, want to extend the tax cuts across the board. So while the political gap is a bitter one, most analysts feel it isn’t too wide to be closed.

Thorndyke also warns that if you consider an expiring temporary tax cut to be a tax increase, it “means that there will be no more temporary tax cuts. All tax cuts will be permanent, and I don’t think even Republicans want that.”

“It would just be shortsighted and eliminate an important economic tool.”

Gerald Prante, also of the Tax Foundation, took it a step further. “Saying President Obama is pressing for the largest tax increase in history is highly misleading,” he said.

“There are only two real options,” said Larry Sabato of the University of Virginia’s Center for Politics. “Extend the cuts for everyone, or allow the tax cut to expire for those making more than $200,000.” And if either of those comes to pass, then a tax increase won’t be the worst since World War II.

Experts say that even if the worst happened and all the tax breaks expired, the arbiter of tax history — Jerry Tempalski, an economist at the Treasury Department whose work has been the basis of all the historical tax claims — wouldn’t recognize it as a record. That, they said, is because it technically wouldn’t be a tax increase — the result of a direct congressional action. It would simply be the expiration of an existing program, they said. The Treasury Department declined a request for an interview with Tempalski.

Steve Ellis, of Taxpayers for Common Sense, says that the battle over whether it would be the largest tax hike in history obscures the real issues.

“Debating it in the aggregate doesn’t accomplish much,” he said. “The real debate should be over whether all the pieces make fiscal sense.”

Correction: Tax Foundation spokesman Bill Ahern was misidentified in an earlier version of this article.

Check out Wednesday’s story on FoxNews.com about what happened to Obama’s campaign promise not to raise taxes.

http://www.foxnews.com/politics/2010/10/08/tax-hike-record-bush-tax-cuts-congress-expiration-consequences/

 

 

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