RWNJ Conservative Views from Cincinnati

Great commentary over at the Washington Times by Michael Whalen.  He owns properties under Subchapter S, and thus falls into the “rich” category.  Using 2008 numbers, he lists out a handful of the taxes he pays on a 100-room (limited service) hotel in Iowa. It is amazing how fast it adds up. Hard data makes it clear how ignorant a lot of the public is when it comes to taxation.

I’m still finding it amazing how many people don’t even realize how much they are taxed on a normal basis. Most people think of taxes and they think of the ones that are out in the open (income tax and sales tax). A lot of people I talk to in daily life don’t remember that they pay property taxes (it is hidden in escrow on their mortgage or imbedded in their rent payments). Many don’t even take the time to look at their paycheck and see the obscene amount of money put into Social Security and Medicare (let alone the fact most don’t realize that their employer matches). It is nearly impossible to explain to people how taxes “trickle down” from the top (through raised product and service prices).

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Another thing that speaks for itself. Enjoy!

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According to The Nation, the U.S. Government is going to give $8 billion this year to the nation’s 10 largest paper companies. The reason is an odd bit of green legislation that gives a 50 cent a gallon tax credit for using fuel mixtures that are a combination of taxable fuels (such as diesel) with alternative fuels.

The process of making paper involves placing wood into a chemical mixture to separate out the cellulose fibers. The leftover material forms what is termed black liquor and it is a good fuel due to its large carbon content. Paper companies use black liquor to produce the heat and energy they need to manufacture paper.

They discovered that they can take advantage of this tax credit by simply adding diesel fuel to the mixture. It is totally unnecessary and far from green, but it allows them to make a  handsome profit off of the tax credit. The  attempt to engineer green behaviour has actually resulted in the exact opposite. It is amazing how every year our tax code continues to get more complex yet continues to get less and less effective.

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The House Republicans gave an outline of proposals for an alternative budget plan today. Specifics on how much the budget would cost and what affect it would have on the deficit are due to be released next week. Among the proposals are spending cuts on everything except defense and lowering the top tax rate from 36% to 25%. A tax cut of that magnitude would free up money used by those in a position to hire workers and would likely be a huge shot in the arm to the economy.

Senate Republicans will be introducing a series of amendments to the budget next week in an attempt to cut spending from the budget. House Democrats are able to restrict the number of amendments that can be offered, so House Republicans are opting to present their complete budget alternative when it is finished.

The big question at this point is if the Democrats will be willing to listen to alternatives or if they will continue to press their agendas forward in a unilateral fashion.

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The Wall Street Journal is reporting that confidence in Obama is rapidly dropping. Obama’s numbers have now dropped to the point that they are lower than President Bush in this point in 2001. His net approval rating was as low as +6% this week according to Rasmussen. The article points out multiple signs of trouble in the polling data:

• A third strongly disapprove of Obama’s performance.
• Obama has lost nearly all Republican support and a large portion of Independant support.
• Support is dropping more rapidly than other Presidents of the 20th and 21st centuries.
• 83% are concerned Obama’s policies will not improve the economy.
• 82% are worried about the growing deficit.
• 78% are concerned about inflation.
• 69% are worried about Government’s increasing role in the economy.
• Less should have been spent on the stimulus according to a 3-to-1 margin.
• Obama’s budget is opposed by a 46% to 41% margin.
• Voters reject Pelosi’s idea of a second stimulus by a 2-to-1 margin.
• The feeling is that the mortgage bailout will unfairly benefit the irresponsible by 48% to 36%.
• 45% do not have confidence in the direction Obama is taking.
• Less than half suport increasing taxes for expanded health-insurance (17% less support than 1993).
• Only 20% support the most recent bank bailout.

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Posted under Economy