Wealth Inequality in US

Wealth Inequality. Somehow Trump is to blame. Somehow, his new tax plan is to blame. And somehow, it is forgotten that during Obama’s tenure, wealth inequality continued it’s brisk rise.   He continued the chart unabated. But it is hardly a nuance of the last decade, or even two, the upswing actually began in 1978 during the Carter administration and continued through every single administration for the next 40 years – Democrats and Republicans

During the Obama administration, food stamp payouts doubled.   But wealth distribution continued its unabated rise. Obviously, welfare Socialism did not solve the wealth distribution issue. So what will?

The UK is labeled a Socialist Capital economy whereby high taxes are imposed to fund extensive welfare costs. But the skew of wealth distribution in the UK actually models that of the US. So obviously, Socialism is not the answer to the dreaded wealth inequality. What is?

It is said that if you are born into wealth, there you stay, and conversely if you are born into poverty – there you stay. So, which countries have the least income/wealth inequality?

The number One is Slovenia. So should everyone move to Slovenia? Most people probably don’t even know where it is or what it is. Slovenia was part of the Roman Empire and then it became part of Serbia, then it was annexed by Germany, Italy and Hungary, before becoming part of Yugoslavia, before becoming – Slovenia.

Slovenia has a population just over 2 million, a nominal GDP per capita of just over $23,000 and the lowest ‘gini score’ in the world. The gini score is what is used to rate a countries wealth distribution. So Slovenia is the place to be! Or not.

The birth rate is a negative, the population is aging, immigration isn’t enough to boost the economy, you could fit seven to ten Slovenia’s into the state of Kansas, and like other secular countries, their future is tenuous.   But most importantly, when assigning a gini score to a country it is important to understand the skews upon which the score is ranked. In Slovenia, the top “100” wealthy have a combined wealth of roughly Euro 2.9 billion.

By contrast, the US which has a much higher gini score, also has the most wealth – the top “5” wealthiest individuals combined amount to over $400 billion.  The US share of world wealth is 25.4%. The country coming in second is Japan at 9.86%.  Both have high gini scores – because that’s where the wealth is concentrated!

Barbados has a wealth per adult capita of over $144,000 and a gini of .7, the “wealth” is a concentration of ex-patriot and offshore accounts. It is meaningless.

Ireland also has a very high ‘gini score’.  Ireland too has very few formidable wealthy citizens. The wealthiest to date is a transplant from India whose net worth is estimated to be roughly $10 billion.   The third richest man in Ireland is an American who renounced citizenship and was heir to the Campbell Soup company.  And the combined net worth of the top five wealthiest living in Ireland amounts to about $22 billion, 95% less than the top tier in the US.

So when we create comparisons in the media using ‘gini scores’ in displaying the skew of US wealth distribution, the story is not exactly wholly relevant and the picture portrayed becomes rather nonsensical.  What it does is give fat to the media when it is only worthy of gristle.

And when we see that this ‘distribution’ has been on a steady rise for 40 years, despite all the Presidents and all the President’s men, it bears consideration that welfare and socialism are hardly the answer because in fact welfare and socialism in the US have followed the exact same skew.  Imagine that…

Our prison population follows the same skew. Food Stamps, Housing, Healthcare, all follow the same skew as wealth distribution. Does that mean they are contributors to wealth inequality? Most graphs tell a very limited picture.   Wealth inequality does exist, and probably always will – even in a purely Communist regime where the government holds the only wealth.   It certainly isn’t fun when you are on the bottom of the spectrum, but it’s not fun when your health insurance represents a third of your income either.

None of this denies the fact that in the US CEO’s pay themselves exorbitant salaries and benefit packages that skew the curve.   But griping isn’t the solution, nor is stacking on more and more welfare, the only solution would be to introduce more competition wherein the cost of a comparable unit is so much lower, the profit margins have to be renegotiated, and the CEO compensation package becomes the prime target. Without competition, the capital structure becomes Socialist and as the US becomes more and more Socialist, the skew deepens.

And that graph is telling.  

RAISE TAXES on the wealthy – According to Soros

Soros and some elite cabal of 400 wealthy politicians have all agreed that the wealthy should be taxed at an even higher rate, because they deserve it, and the notion that lowering taxes produces greater growth is – hogwash…

Problem; the rich aren’t paying the tax rate that they already should because, a) their money is in offshore accounts where they pay no taxes, or b)   because they take advantage of all the loopholes that Trump wants to close.  In fact, Soros hedge fund paid less than $1000 in taxes in 2013. So, their argument is well – condescendingly hypocritical, and manipulative… It presents a highly ethical mindset while the wolfe eats the chickens and disposes of the bones.

Why do the wealthy have offshore accounts? To pay less taxes. It is so obvious, and yet, the allusion would have us believe they ‘want to pay more’. If they did they wouldn’t have offshore accounts!!

Hillary argued that the wealthy pay too little. Yes, but not because of tax ‘rates’.   The argument keeps surfacing, and yet the reality is obscured.

Hypocrisy is a tool, it is a cloak, a mask, and ultimately a dagger as it pervades in brain-washing the minds of mankind speaking lies until the truth no longer even exists.

While Hillary and Obama have been the subject of numerous illegal transgressions, they are victims. Simultaneously, Mueller and Soros target and possibly even invent accusations in order to attack conservatives, on behalf of ‘victims’. Soros financed pro-EU organizations, including his own, in order to ‘persuade’ anti-BREXIT, and yet when Russia is accused of funding the Leave campaign, their money is treasonous, an actionable illegality. Putting money in offshore accounts to evade taxes by the wealthy is okay, but raising taxes is the means to a better economy…

So who are the ‘politicians’ that want to raise taxes?

The Argument:

“The wealthiest 1 percent in the U.S. pay the lowest taxes as a percent of their income and total wealth of the top 1 percent in any major country – and far lower than they paid in the U.S. during the first three decades after World War II, when the American economy grew faster than it’s been growing since the Reagan tax cuts.”

While offshore banking has been around for some decades, it was predominantly utilized by the mob to launder money. Later, the concept of moving money through citizenship gained traction in the 1960’s – remember the Beatles?   By the 1970’s corporations were developing strategies, but still there were no loopholes in place for its legality. Switzerland became the dominant haven for opaque banking. It’s popularity gained traction in the 1990’s, around the time Billy came into Power.

But the use and size of tax havens can directly be tracked to ‘rising tax rates’, greed, power, and the desire to “NOT PAY TAXES”.

The haven itself became big business, the British owned Caymen Islands evolved in the 1960’s when Britain’s taxes peaked at over 95%. Enter Singapore. Then the Brits used more island hostages to evade paying their dues. The Queen is implicated. David Cameron. By the 1990’s Ireland saw the advantage and lowered their corporate rate to lure Big Pharma.   Insurance and re-insurance companies followed with Bermuda.

The largest worldwide group of tax havens are British Empire based. The second largest is European based.  Coincidentally, they have some of the highest tax rates in the world.   Socialism not working?  It does have one claim to fame, it provides for the poor while robbing from the middle class, because the wealthy are all on their islands laughing hysterically.  Until their is no middle class – Venezuela…  And that is the ultimate agenda, because only then can the World Order be ushered in.

So when Soros, McCain, Clinton, Romney, Wasserman, Ryan, Cantor, Flake and the host of 400 who advocate for and demand that the wealthy pay a higher rate … it is a hypocritical joke, because they have no intention of actually moving assets back to the US, or paying a higher rate when they don’t pay at all. Because $42 Trillion is held in offshore accounts where the point is – to evade/avoid taxes.

Part of the problem is that Economists work from ‘theory’, not fact or emotion, and therefore their argument might have some merit on paper, but the reality doesn’t hold.   It is much like most science which purports to build a “fact” based on a plethora of ‘theories’ as the core.  No matter how many facts you stack on top of a theory, the end will always be – a theory.

Raising taxes on the wealthy and corporations will have only one effect – more offshore accounts.

There are 31 instances in the Bible where God’s judgment of hypocrites is fiercely decried. Judgment is harsh for these pretenders who live both within and without Christianity.

Be Wise.

Trump TAXES – and the Naysayers of Doom

The complainers are coming out of the woodwork like termites wondering why their particular agenda hasn’t been fulfilled yet like a society of entitlement soothsayers…  “What about what I want?  Me! Me!”  Without considering what  is required in order to get anything actually – done:

 

TRUMP ON TAXES – nutshell

  1. Double the standard itemized deduction value for single taxpayers – $12,000 and married taxpayers – $24,000
  2. Standardize tax rates to 12%, 25% and 35% – the income levels have not yet been released.
  3. Curb the itemized deduction for home interest to $500,000 vs $1 million, which effects homeowners who currently write-off on home asset values of $22 million…
  4. Repeal and curb itemized deductions for taxes, tax prep fees, moving expenses, medical expenses, and theft and personal losses
  5. Repeal deduction for alimony (not taxable deduction or expense)
  6. Eliminate recharacterization of IRA’s between traditional and Roth
  7. provide a one time incentive to bring offshore money home for a 10% tax bill – current estimates state that offshore money worldwide is valued at about $40 trillion.
  8. Flat tax the corporate rate at 20%.
  9. Repeal certain depreciable assets and enable 100% of cost as write-off
  10. Allow businesses a $25 million threshold for cash vs accrual accounting and inventory
  11. Remove limitations on interest deductions for small businesses
  12. NOL would be capped at 90% of current year taxable income
  13. Increase estate tax exclusion to $10 million until 2023 when repealed and gift tax rate lowered to 35%
  14. Cap small business tax rate at 25%, LLC filers and Sub S Corporations
  15. Increase child tax credit
  16. Repeal Alternative Minimum Tax
  17. Elimination of certain business tax credits, except; research and development, investment and low income housing credits
  18. Elimination of tax free bonds used to fund the construction of Sports Stadiums
  19. Simplify and streamline Education credits

Apparently, the plan has drawn criticism… surprise! Ann Coulter thinks it isn’t even an issue with anyone, and instead Trump should be prioritizing building the wall. Paul Ryan doesn’t like it, but few people like Paul Ryan, so his opinion is a non-issue. The complainers have come out of the woodwork and don’t realize that complaining is why nothing gets done!   Their complaining is Swampish.

According to Gallup, the biggest issue American’s identify is government corruption. Yet, as Trump slashes the Swamp, everyone complains. Why? Americans have become so paralyzed by party definition that we fail to recognize that Trump is doing exactly what we claim to want. He is tackling the Swamp, and it is far deeper than anyone can imagine crossing party lines, gender lines, and judicial lines.

Issue #2 – The Economy. Ann Coulter seems to have forgotten that one of the prime ways to stimulate the economy is through a reduction in taxes. But Trump has actually gone a step further and is offering to bring back into the US potentially trillions of dollars in offshore accounts!  Investable money. Money to ‘stimulate the economy’!

Issue #3 –  Immigration. A work in progress, sanctuary cities are the battle ground. The border is the battle ground, and el Salvadoran gangs, etc…are the battle ground.  Trump has meticulously attacked each area, and still the sky is falling Chicken Littles – complain. But the race is not won by the Hare who acts impatiently, but by the Tortoise who acts with ingenuity.  The immigration problem has been manifested over a 40 year time frame with each successive president prodding its continued growth. It’s like giving birth; the weight gain occurred over nine months, you don’t lose it in one day.

And lastly, Healthcare, which for me is a personal issue that literally takes my breath away at an annual cost of $16,000 including deductible! That’s $8 per working hour, which is about equal to the minimum wage…

UPDATE:  My nephew in Arizona was just issued a statement that his private health insurance premiums will increase by 80% in 2018.  Thus the premium for him and his wife will be $23,000 with an $11,000 deductible!  He ‘was’ retired…

You Can’t Please All Of The People All Of The Time!  

But apparently, everyone would like to think that their ‘pleasing’ is most important, and to sit back and complain loudly about everything is their call to action – bonbons and all. There is no such thing as a Bill that will appease everyone, but if we are so self centered that a Bill that has tremendous potential for solving Economic issues through Tax Reform is tabled, then how can we possibly move on to the next issue with any confidence or hope?

If both sides of the media raucously wag gnarly fingers of doom, then that is ultimately exactly what we deserve.  Which is to say – NOTHING.

Lets get this done!  NEXT!

Hijacking The News

I was trying to find “Economic News” worthy of the business world and was met with headlines discussing; a boxing match, the Trump pardon of Arpaio, the hurricane in Texas, a Supermodel, the richest in Hollywood, the finale to some TV shows, the eclipse, some fashion junk, and a whole lot of Trump that has absolutely nothing to do with the “economy”. And I thought – well, what IS HAPPENING with the Economy, because, you know, no one in the media world seems to be talking about it??

In fact, you know when Paris Hitler is the headline for Business and Economic News, we have truly, truly collapsed.

Instead, the headlines talk about the finale to Game of Thrones, the spending habits of someone I’ve never heard of and don’t care to know, investing for ‘beginners’ – as in really, how often must we bludgeon this topic? And then there are more talks of films, Blu-Rays, season finales, and film profits as though this is the dominant Economic News agenda…

And I want to throw up.

What became of the news of mergers and acquisitions? Of Interest rates and job markets? Of Big Pharma and banking derivatives? What is happening with oil and natural gas throughout the land grabs? The corrupted diamond industry? What’s going on with the housing market globally? With the UK fixed year leases? What’s happening with Greek austerity? Italy?   Is the National healthcare system in the UK collapsing still? Howabout Canada? What about the oil pipelines in the Middle East? Or the shortage of water in China?

Did you know that Amazon was gobbling up Whole Foods?

Or that Oregon was attempting to implement private gun confiscation?

Instead we are fleeced with headline after headline about – such topics as: the best places to be gay, behold our ‘child king’, Trump and the Babysitters, On Values, Trumps speaks for Himself, Will future Presidents attend Kennedy Center Honors, Bill Nye is suing, 7 questions for Game of Thrones,… until we are deluged in a tropical hurricane of mediocrity. And personally, I want to scream!

I don’t care!

Most people the media quote I have never heard of, most people they espouse haven’t been to college, the ‘facts’ are opinions, the ‘truth’ is conjecture, and the scream is reminiscent of Anthony Hopkins… one of the first psychotic slashers of the Hitchcock generation.  Help ME!

Perhaps one of the most offensive Economic headlines was: “Does this $400 hairdryer offend you?” NO, but the fact that it is a headline news feed – does! Don’t you have anything else to talk about?

Did you know that two former managers at the French bank Societe Generale have been accused of participating in a scheme to manipulate the global US dollar Libor benchmark interest rate? That this resulted in over $200 million in damages, as reported, which could effectively translate into billions in the real world? That I had to find this information from a Russian news site despite the fact that this occurred in the US, because the mainstream doesn’t want you to know…is non-existent?

Does it make it ‘fake news’ that it came from Russia? Does it make it fake news that it came from the US? Canada? UK?  Germany?

Let us not forget, Germany was the progenitor, the core, the instigator of – propaganda in WWI and WWII. Not Venezuela. Not China. Not Russia. Not Poland. Germany.   And so, why is it that we believe that now, today, somehow, they are the epitome of perfection and truth?

Because, the media tells us so.

And so, when perusing the news on your computer, you might want to ask, what is really news, and what is – Hollywood?  It would seem, the Hollywood has hijacked reality.  But maybe, just maybe, that is – the agenda…

US Infrastructure Meddling and Peddling

The Sky Is Falling! Actually it’s the bridges, the roads, and just about every infrastructure system we have in the US. And it’s Trump’s fault. Wait, it’s also his responsibility, not the ten or more President’s before him… Funny how that works in the public. Get it – Public Works!  Anyway…

So the Dems came up with a fabulous solution but it will cost $1 trillion and the Feds have to pay for it 100%. They don’t actually say ‘how’ the government will fund this, they simply say it will. Interestingly, they managed to come up with this plan right after Trump was elected having pledged his own support for a $1 trillion plan to rebuild infrastructure, despite Hillary’s $250 billion ‘pledge’. And they immediately began bashing Trump for not having towed their line – given it is perfect. So why didn’t they tow that line ten years ago, or even five? Why didn’t they have Obama rally an infrastructure rebuild? Because it isn’t really a plan with directed financing, it’s more like a fantasy without having a clue where the money is going to come from.

Gee, that makes sense.

But wait, there’s a ‘Problem’. You see, fewer people are now working in road building. WOW, New York Times, this is truly great journalism and deductive reasoning. Maybe the reason there would be a shortfall of workers is because there hasn’t been much road building for the last 28 years. Maybe that could explain this anomaly of a deficiency. But that’s not their agenda. Their point is to provide a qualification for bringing in more immigrants to cover the shortfall of road workers that they will claim is caused by lazy American’s who don’t want to work!

FIFTEEN million jobs will be created! That would just about cover all the illegal immigrants in the US. Funny how that works, public.

And this one is good, “Public construction in road building in California was down 27% last year from 2007.” That would coincide with Obama and Jerry Brown not spending on infrastructure, right? Why? Because they don’t have any money! And since they aren’t building, it would logically explain why there are fewer workers, because, workers aren’t going to sit around for a decade waiting for a job unless they’re on Welfare, which maybe they are!

And here is the best: “They (the government) should devote resources to building…” What resources? Still, the media laps it up like a lost dog offered bacon.

Trump’s plan involves privatizing roads which means tolls. Dems don’t like that. Why? Because then they will have to pay equally? It’s a use tax which makes logical sense, “if you use the road, then you pay, if you don’t use it, then you don’t pay”.   What’s not to like? Well, politicians get an allowance for everything anyway, so whether it’s a gas tax or a toll, they will be reimbursed. So in the end, like Obamacare, politicians won’t pay for infrastructure any more than they do for health care.

California Exit – A look Inside…

If California is successful in its bid to partition the state into the good guys and the bad guys, with south western California relegated to the Liberal whacks and the rest of California to the ‘others, what would that really look like?

First, the section that is the Liberal southwestern section also happens to be the same section that is devastated by continuous ‘severe droughts’ due to incompetent Liberal government action for this seven year itch.

In addition, the predominant wine country region happens to be on the eastern half of the ‘country’/state. Oops.

And thirdly, most of the upscale lavish lascivious elitist self ascribed loons accumulate their wealth in this tight enclave – with the exception of Silicon Valley – or Death Valley – and San Francisco – think ‘fire’. So the arm reaches would have to extend to those specific areas as well for the doleros – leaving splinters of ranchers, winers, illegal immigrants and rural farmers the remainder of the continent/country/state.

But then what these braveheart elitists seem to have overlooked is the fact that they wouldn’t have any water, guns, security, food, or wine. And trucking it in costs mucho dollero at the hands of mucho banditos. But stupid is as stupid does.

And guess what those ranchers, winers and farmers would do right away? Lower taxes and get rid of welfare. So all the illegals would flock to the wealthy sector that has no water, no wine, and no food… and without a means of earning a living they would turn to crime using the guns they bought in western California. The Hollywooders would cry fowl and try and make the westerners responsible for the actions of the illegals and a food/water/wine war would break out.

Soon the Hollywooders would be forced to ship their goods in from Venezuela, Chile, and Brazil.   But it wouldn’t be organic, so they’d have a protest march and send a spokesperson to South America – Rosie.

But in the meantime, with no police to protect the Hollywood babel of protestors, they would be left to the anarchists from the North. Homes would be torched and houses confiscated by the M-13 Gangs who raped and pillaged as they easily won a war where weapons were a one sided proxy.

Rosie would be pummeled with tomatoes soaked in Monsanto’s glysophate and run home screaming about global warming while hijacking her private jet that consumes 4 billion tons of energy. All the while she would pray to the god of lala that her jet would land in Canada and not in Saudi Arabia because all airfields in western California were shut down due to nuclear threats and she didn’t have a hijab to her name.

A rash of fatal cancers would break out in LA as it became known that the wine being imported was made from beetle dung and crickets. The best doctors would be flown in from Cuba and provide their analysis – it’s the pharma drugs stupid – not the wine.

The fires would consume Hollywood, the parched earth would flake off and crack into the ocean and Hollywood would blame the flipping Trump and his family for not protecting them from the ravages of their life all the while cracking lude jokes and making grotesque innuendo’s befitting a redneck on a rain soaked sofa in his yard on the backside of the blue ridge… singing ole-da-la-he-ew as Mary Poppins parachutes down from the west winds and tells everyone they just need a spoon full of sugar. But it ain’t sugar, it’s crystal meth and – everyone dies.

And the moral of the story?

Madame Bovary by Gustave Flaubert: “You can’t always get what you want, but that’s no reason to poison yourself and die a horribly slow and painful death.”

American Recovery Act: A PONZI Scheme

IN 2009, as a part and parcel of the American Recovery and Reinvestment Act, President Obama allocated $14.7 billion to repair and modernize public housing as well as offer tax credits to builders for financing low income housing construction. Today, this portion of the Act is being hailed as a complete failure…

Of course, the failure is not being blamed on the Act or Obama, but on ‘White Contractors’ and racial prejudice.

It is another form of forcible equality in a world that is and always will be ‘unequal’. Knowing that even a newly constructed modern housing development will soon be left to squalor and decay because maintenance is a foreign concept, it is no wonder that neighborhoods clamor to object when their property values will tank in response.

New York is the perfect example of the throw away ideal in which HUD Housing was left to rot, rents were not collected, and buildings became rat infested homes for squatters.   De Blasio’s response was to shutter them and ask for more money to build new ones that would eventually evolve into the exact same state of deterioration. Why? Because maintenance costs money that De Blasio would rather spend on wealthier initiatives…

Of course the other more glaring hypocrisy of this debate is the fact that HUD housing is comprised mostly of whites in poverty as they make up the largest statistic… Oops.   Second are Hispanics, and third are blacks. This reality rather flushes the obtuse racial discrimination claim as an issue and puts it where it belongs – in the twalette. Trying to foment divide based on race is the number one promotion of Mainstream Media.   Obscuring facts, playing roulette with statistics, and downright lying seem to be the new normal. While they claim to represent The People, their journalistic philandering is rife with corruption.

Part of the problem in the forced housing debacle is the ethical concept of ‘earning what you have’ whereby you are actually rewarded for your efforts… A foreign concept any longer. Free income, free upscale housing, free food, free healthcare, free child care, free transportation… well, why bother to earn a living when you can have everything for free?

But the point is the fact that the class integration was just another failed measure of the American Recovery and Investment Act written before Obama took office by unknown drafters, and pushed through almost immediately in 2009. And like Obamacare, it is an abject failure.

Of the $831 billion dollar package, $155 billion was allocated to Healthcare including, building of VA hospitals…, Medicaid, IT , Research and VA Administration. Mired in cost overruns and mismanagement in the VA core, the $2.3 billion was a failed waste. Interestingly, while the VA got $1 billion for hospitals, NIH got $10 billion. With a $31 billion annual budget, NIH has been scrutinized for less than transparent reporting and vague accomplishments.

In 2009, with the additional $10 billion allocation, their one and only target research was, “how voltage ion channels interact with their surroundings”.   The ultimate impact? Research findings provide ‘perspective’ for a new direction of targeted therapeutic development…

Another challenging use of the $10 billion was to research a new method to measure abdominal pain… Because the pain scale that we all know “on a scale of 1 to 10”, wasn’t definitive enough…

Another $100 billion was allocated to Education with the primary use of the funds directed to “prevent layoffs and cutbacks”. Obviously that hasn’t worked very efficiently either given the latest report states that the US is facing a severe crisis due to a shortage of teachers…

So what exactly did this $831 billion accomplish?

$70 billion was allocated for a one year – 2009 – increase in the Alternative Minimum Tax floor… But the annual revenue raised by AMT per year only amounts to about $35 billion…   So, in other words, we spent $70 billion to reduce receipts by about $10 billion or less given it was only the floor that was altered, not a complete repeal of the tax!

Now that was definitely a worthwhile expense. So where did that money actually go?   We are missing an accounting of the use of these funds… Much of the “USES” were subjective, based on a perceived loss of IRS funds based on credits. So while the cost, the $831 billion, was actually charged to taxpayers, the USE was actually never accounted for or disclosed.

Tch, Tch. Nothing more than a covert Ponzi Scheme, only every single American Taxpayer was the victim. Madoff? Nothing by comparison.

NEXT!

Illinois DEBT – Death March

Everyone is gasping at the absolute bankruptcy facing Illinois – as though this was something new to report – but it’s been ongoing for years if not decades and Illinois ain’t the only one! Indiana, Michigan, Ohio and Wisconsin are all casualties of over spending excesses requiring a per capita hand-out from the Feds of anywhere from $1318 to $1802, or $8.9 billion to $20.4 billion – per year.

Cha CHING!

In fact, Ohio and Indiana get over 33% of their revenue from the Feds in the form of our tax dollars – not well spent!

And where does all the money go in Illinois?  According to the infamous Budgetary Pie Chart titled, “Spending By Function” provided by Illinois, 43% is spent on “OTHER”, 26% on Medicaid, 14.6% on K-12, and 9.3% on transportation.   “Other” includes CHIP, which is actually a duplicate extension of Medicaid, Mental Health, Public Health, Employer Contributions to Pensions (reimbursements), Environmental, State Police, Parks and Recreation, Housing and General Aid to Local Governments.

Of course we all know that the rule in government subsidies is – spend more than you have or you’ll get less next year. So operating at a yearly loss/deficit is beneficial…  and nearly all the states do it.

The total state debt for Illinois is $321.3 billion! The total state debt for Ohio is – $321.3 billion… Huh.   Meaning every person in Illinois is on the take for about $24,900 and every person in Ohio is on the take for about $27,900… Oh wait – Ohio is actually worse off…  Where is the PRESS?

More numbers:   As a percentage of total revenues, Michigan gets almost 42% of it’s income from the Federal Government. If we were to eliminate Federal/Taxpayer subsidies to these states alone we would save $76 billion.  Pensions to all states?  Over $1 Trillion.

With somewhere over 10,000 line items in the Illinois budget under Education, I decided not to review each line… SURPRISE.  But I did note a few fast facts: $1.1+ billion spent on No Child Left Behind, (I thought that was defunct?) ,  $700+ million on Individuals with Disabilities Act, (That’s for the ACT, not for people with Disabilities?)  $850+ million on child nutrition, and then the ubiquitous – $4.8+ billion on General state aid… I had to add the + sign because each categorical account had their own budget request for the same thing, as in General Aid.

Illinois claims the number of children in extreme poverty to be 267,000, with the number living in poverty to be 591,500.

So where does MOST of the debt load come from? Pensions are numero uno. Medicaid and health care are making a rounding second place in state debt with those costs rising more rapidly.

But before we get our panties in a wad, there are only a handful of states that have a surplus! Those operating at an efficient level include, North and South Dakota, Wyoming, Nebraska, and Alaska.  Oil would appear to be a common denominator.

This is all part and parcel of the Swamp that has existed for decades as politicians are too fearful to actually tell the truth and tell Americans that their belts need to be tightened by 3 to 10 notches!   They can’t tell us this because then we wouldn’t re-elect them because they would be giving us bad news and making us act like adults instead of children.   The Swamp exists – because we elect it. We allow it.

Instead we play with the numbers and statistics and make comparisons that are not relevant, in order to convey a premise that makes people feel good while the Truth is left to die.

A ranking of the Best Run States in the US as of 2015 was as follows: 1. North Dakota 2. Wyoming   3. Iowa   4.   Nebraska 5.   Minnesota. The states ranking in the bottom tier?   New Mexico, Illinois, Mississippi, Rhode Island, and Alabama.

It should be noted that Party affiliation is NOT a factor in the rankings, republican Governors and Democrat Governors are split pretty equally.   North Dakota does spend considerably more of their income on education – 43%, including Higher Education which is minimal in Illinois.   The states with the lowest per capita debt are Tennessee, Georgia and Texas. But the rankings include numerous factors in addition to debt and spending.  Employment, education, the ability to raise the bar in the near future, credit, all are factored in when making a solid analysis.

This is why Illinois and Ohio are perilous with Michigan and Wisconsin on the precipice. They don’t have a future.  Michigan tanked with the auto industry and hasn’t recovered since.  Wisconsin is struggling from a dull manufacturing platform, as are Illinois and Ohio.  Having not diversified and shifted with worldwide trends and economic shifts, their failure is more a consequence of negligible forward thinking management.

Again this is nothing new, these states have been on a death march for quite some time under the tutelage of both Party Affiliations.

And frankly my Dear, the Swamp could really, Give a Damn.

 

 

Trump Tax Plan – Hoopdela

Trump has released his outline for tax reform and the mainstream are going google nuts! They are absolutely convinced that this is a wealthy tax reform that will plunge revenues into the twalette!! The highest tax bracket of 40% will be reduced to 35% and this will decimate the Federal government pockets. OMGosh.

Really?

Because according to the IRS, in 2015 (latest year available), the average tax rate for the 1%ers was just barely over 27% although they still picked up about 38% of all income taxes. The top 50% of taxpayers had an average tax rate just under 15%. And the bottom 50% paid a meager 3.3% in taxes on average and only represented 2.78% share of all taxes collected.  Well how do ya like that!  This aligns rather well with Trump’s plan, unless you are an overpaid tax preparer, an IRS employee, or a Pundit.

One decrier of the plan is Bill Maher, a comedian with a degree in English and History. I suppose that qualifies him to evaluate and analyze finance? Another critic, Ryan Struyk of ABC quoted the ‘bipartisan’ Committee For Responsible Federal Budget.  

It’s current President, Maya MacGuiness, whose background bio includes such media notables as Washington Post, New York Times, The Atlantic, Financial Times and LA Times – all bellwether diehard Liberal organizations, is predictable. In addition, she held a post at the Brookings Institute, another Liberal organization. Hard to classify as ‘nonpartisan’.

The Board is weighted heavily with democrats, including Leon Panetta, Charles Schultz, Robert Strauss, etc… And formerly associated with the New America Foundation, a Soros supported organization. They took a special interest in Obama and McCain in 2008… lauding their budget campaigns. In other words, it is hardly the most reliable in terms of ‘nonpartisanship’.

For the lower 50% tax filers, the greatest advantage is increasing the standard deduction which effectively makes the first $24000 of revenue nontaxable taking a hefty stresser off the table. Critics of the plan continue the same rhetoric as always without ever understanding the main punch – lower tax rates mean more income will flow back into the US instead of ending up in the Caymans, Bahamas, Cyprus and all the other tax havens that wealthy taxpayers enjoy – including Hollywood elitists.

Another ‘nonpartisan’ organization offering their opinion is the Urban Brookings Tax Policy Center whose current President Mark Mazur was an Obama appointee as Assistant Secretary for Tax Policy. The previous president, Leonard Burman, worked in the Bill Clinton White House.  Funding comes from Ford Foundation, Rockefeller Foundation and Gates Foundation…Sigh…Gee REALLY?  All quite Liberal.

I think a part of the failure of the analyses is that it comes from people making tons of money, they don’t understand the mentality of someone making just enough to pay the bills, and can’t predict that reaction. In contrast, failing to take into account the offshore money is very short-sighted. Failing to look at the sources of tax revenue historically, is also short-sighted.

Failing to check your SOURCES – is also pretty critical.

According to the Liberal MSM, The New York Times, The Cayman Islands hold $1.9 trillion in US dollars on deposit. The Swiss hold $3 trillion in Swiss francs. IBC’s and trusts account for trillions. In fact, it has been estimated that between a third and a half of all the wealth of the world’s high net worth individuals is sitting in offshore accounts. Why?

Taxes.  And its not coming back unless there is an incentive.  Pretty basic economics.

The other half of Trump’s tax plan affects businesses by cutting the rate from a top tier of 39.6% to just 15%. Ultimately this will encourage spending, additional hiring, and raises. It won’t happen overnight. But this effect could be the biggest equalizer encouragement. The effect of lowering tax rates has been proven over and over again as an economic stimulus.

In this instance it has the added bonus of encouraging large corporations who have offshored their headquarters to tax haven countries, to relocate back to the US.  Despite all the analyses, this one equalizer has not been utilized in making predictions.  Why?  Because it hasn’t happened.  Corporations keep moving away – they don’t come back unless they have that diehard gravity – incentive!

Again, this will take time to implement in terms of feeding the economy, but the measures could sharpen the revenue stream significantly.

While some Republicans eagerly proffer negative reviews claiming the tax reform will not ‘blow holes in the deficit’, they seem to miss the point that – THAT is NOT the Point. It is as though the search for a negative no matter how forlorn, far-fetched, ambiguous, destructive, or just plain ridiculous, is the only agenda.

It’s an ego war.  ‘Well I didn’t think of it, so therefore it probably won’t work…’

Even more telling:   How can these in-depth, analysis Committees and policy groups and pundits release their ‘in-depth analysis and criticism’ one day after the outline is made public?   Because in the real world, such analyses typically take months, if not years, in government circles. They require complete knowledge of the entire plan, not just an outline, as Trump provided. They require multiple experts plugging in numbers, ratifying data, creating algorithms, and then fixing all the inevitable mistakes they have made, resubmitting left out data, and creating new templates.

But then it wouldn’t make for good Entertainment and media mania…

Middlebury Riots – a generation of daycare children?

Watching the latest Middlebury riots, the level of violence in our youth seems to have reached levels of entitlement without consequence. And this unruly behavior is rooted – at home – with parents. It is the parental responsibility to teach values and ethics to their children beginning in the home – so that they understand it is not tolerated, not permitted, and will have consequences. Unfortunately, it would seem that consequences in the home – in the schools – and now in the universities is non-existent.

Why?

Perhaps the correlation is that more and more our kids are not raised by parents, instead they are raised by institutions, as in DayCares. Not unlike the State raising children without moral boundaries, love, discipline, or virtue.

According to The National Center for Education Statistics, just 13% of children in the US get home-based relative care. This doesn’t mean a parent, it simply defers to ‘any relative’.

Twenty five years ago when daycares shifted from the helping hand to the prime parent, psychologists insisted there would be no ramifications. Instead they sought to encourage this altered state of the Family. They promoted daycares as a good, healthy, social environment. And they derided the home based mother as repugnant for holding their child back from an opportunity!

It’s much like Dr. Spock who decried that actually embracing or kissing your child could lead them into becoming a clingy cry=baby ninny. Or when our esteemed government told mother’s that formula was far superior to breast milk – and an entire generation was raised without antibodies to fight diseases.

We are now forced to live the consequence of this very stupid psychological mumbojumbo MESS.

New studies show that:

1) Children who attend daycare centers tend to exhibit more behavioral problems

2) Age of entry and quantity of time spent in daycare are directly correlated responses to the problem behavior

3) Children who spend more time in daycare more likely to exhinit negative behavior

4) Children in daycare during infancy linked to lower cognitive scores.

5) Extensive daycare experience associated with insecure attachment to mothers.

6) Parents who put their children in daycare are less likely to discipline and provide parental guidance to their children

7) Daycare children were more likely to have academic school problems, health problems as well as advanced behavioral problems.

OOPS! I guess all those expert psychologists from 25 years ago were all dead WRONG.

Further studies have shown that there is also greater inability to engage in a relationship. The new generation doesn’t want kids. They don’t want a family. Their entire world is conceived of self.   Another fabulous concept ingrained by the psychology kingdom. Self books, self need, self desire, pay attention to self, self is everything – until those selves become infatuated with nothing else.  It is an addiction – self absorption.

Daycare was not created to replace mom and dad, it was created to assist single mothers who needed to get off welfare and train in some employment capacity. But the media led us to believe that if the wealthy could have nannies, daycare was the middle class nanny so that moms could tend to ‘self’.

Growing up in a daycare is really not much different than growing up in an orphanage. Twelve hours each day under state rule, only to be taken home by a weary, exhausted mom who just wants to put their child to bed.  I remember when I had my daycare center and moms petitioned for me to have weekend overnights at the center for their children so they could go to bars, and parties and such…   I didn’t.

So if you want to know why these ‘children’ are now rioting at Berkeley, Ferguson, Middlebury, etc…, they have no discipline structure – and the Universities are so afraid they might lose money over disciplinary action, they fall further into an existential trap.

Odd Segway: Remember how the entitlers strove to shut down Ivanka Trump’s clothing line causing many department stores to pull her line? The retailers acted out of fear and succumbed to the bully tactics. But the result has been that her line is doing famously! And in the end, the retailers have lost sales , lost income, and lost respect as the majority spoke.

Imagine what support a university might find if the conservatives discovered that the school actually had values and consequences, and bullying, violent, bratty children – were no longer tolerated?