Well, they’re at it again. The Congress is going to vote on extending the reduction of payroll tax (Social Security Tax) used to pay for Social Security, supposedly as a means for increasing the economy. Wonderful. They have used this Ponzi scheme in the past and the reduction hasn’t made any difference. The passage of this so called reduction, lowering of the Social Security tax from 6.2% to 4.2%, does nothing more than increase the debt that Obama’s gang has dumped on the American people.
Any businessman or homemaker knows the utter stupidity of this move. For those who don’t have a clue about finances, business operations, or a family budget, which includes members of Congress, the White House, the Federal Reserve, Republicans, Democrats, the Treasury Department, and most high school and college graduates of recent years, I suggest the following.
All financial operations, be they for home, business, or government, operate with two opposing forces, income and expense.
Expense, that’s the money paid out to keep the operation going, is divided into two types of payments, fixed and variable
Fixed expenses do not depend on consumption of a good or service. A fixed expense is a cost which does not change, or changes very slightly. They are usually paid on a regular basis such as week to week, month to month, or year to year. Usual household fixed expenses are mortgage or rent payments, car payments, real-estate taxes, insurance payments, and the like.
Variable expenses change depending on your consumption of a good or service. A variable expense is a cost that changes significantly from period to period, such as week to week, month to month, quarter to quarter or year to year. Typical household variable expenses are household maintenance expenses such as painting or yard care, general expenses such as clothing, groceries, and car maintenance and fuel, and utilities such as electricity, gas and water.
It’s simple. We have expenses, we have income. We subtract our expenses from our income and if there is any left over, we’re ahead. If it comes out even, we’re okay. If there are more expenses than we have income, we’re in trouble. The same thing, incidentally, applies to governments but they don’t understand it.
Take a trip to la-la-land, called by some Washington, D.C., home of the politician, those people who, generally, aren’t financially smart enough to hold a real job where they would be paid for their ability to produce something of value. As a result, they increase expenses, faster then they can collect income from taxation.
In the past three years, this hasn’t been a problem to them. This year it is a problem as it is an election year. And they want to get reelected. Not getting reelected and being forced to actually work for a living, strikes such terror to them that they become brain dead and lose all sense of reality. Even worse, if not reelected, they will have to live under the insane laws they have enacted in the past.
They realize two things. They can’t pay the bills and they are worried that the overtaxed populace will catch on to their idiotic spending and inevitable tax increases business and individuals. They need to fool the folks into believing that they are getting financial help from the government in the form of decreased taxes.
“Hey,” they say. “We’re going to save you money on your taxes, therefore, you will be able to spend more, and the economy will be saved.” They won’t tell you that the national debt, what we owe, is larger than the national gross product, the total amount of goods and services our economy is producing. (The United States owes 15.5 trillion dollars, an expense, and takes in 2.3 trillion dollars in taxes, income. The national gross product is 15 trillion dollars.)
One of the hottest issues this year is Social Security. It is very visible as a Social Security tax deduction is taken out of everybody’s paycheck, except the Congress and Obama’s mob who excused themselves from having Social Security.
Their solution to make them look good is to decrease the amount people pay into Social Security from 6.5-percent to 4.5-percent. If you are making $50,000 a year, your saving is only $1,000 but you still have to pay $2,250. Wow! This is going to make a huge difference in the economy and solve a working man’s financial problems. Or will it?
Social Security is going broke. It was on a sound financial basis until President Lyndon Johnson stole money from the Social Security Trust Fund for the Vietnam war, Medicare and Medicaid, and other welfare schemes. Today most of the Social Security payments are being taken from a combination of the Social Security Tax and Income Tax.
Social Security payments are a fixed expense and paid on a monthly basis. It is a fixed expense by law, one which Obama hasn’t yet gotten around to changing by another executive order. The loss to the Social Security Fund due to the 2-percent drop in the tax to employed people will amount to 155-billion dollars a year. Think about it. One-hundred-fifty-five billion dollars which will have to be made up from some other source. More borrowing? Increases in taxes? Remember that Social Security has to be paid. No choice.
The point is that the 155 billion has to come from somewhere. They won’t tell us where it’s coming from. The politicians will lie to you in an attempt to make you believe they are helping you. The big lie is that the two-percent decrease in the Social Security tax is going to make life better by allowing you to spend more. A second big lie is that by collecting less money for Social Security will somehow cure the Social Security deficit. A third lie is that collecting less Social Security tax will cure the overall fiscal crisis. It just isn’t going to happen.
It is time to stop paying able-bodied people for not working. Two years of unemployment benefits is criminal.
It’s time to stop foreign aid to countries who are our enemies, including Muslim countries, China, North Vietnam, and South American countries which are socialist and communistic.
It’s time to shut down the borders and keep the wetbacks down south where they belong.
It’s time to send the illegal Mexicans, Guatemalans, Haitians, and other Latino freeloaders back to where they came from.
It’s time for unions to take some responsibility for the state of the economy instead of just its money.
Most and foremost it’s time to get rid of the dunderheads in Washington, D.C., from Obama, Pelosi, Holder, and the rest of that criminal element, as well as the Congress, be they Republicans or Democrats. Voting for any increase in spending should be an automatic veto to their election.
It is impossible to reduce the debt without reducing spending. No amount of smoke and mirrors, lies, pronouncements or whining, will ever change that fact! We are being dragged into national bankruptcy by asinine spending bills designed to bring our economy down.
We have lost much of the freedom and liberty we had only live years ago. We won’t be able to get it back. Wake up! Do something. Prevent losing all our liberty, freedom, possessions, and livelihood. Wake up. Get involved.
Any businessman or homemaker knows the utter stupidity of this move. For those who don’t have a clue about finances, business operations, or a family budget, which includes members of Congress, the White House, the Federal Reserve, Republicans, Democrats, the Treasury Department, and most high school and college graduates of recent years, I suggest the following.
All financial operations, be they for home, business, or government, operate with two opposing forces, income and expense.
Expense, that’s the money paid out to keep the operation going, is divided into two types of payments, fixed and variable
Fixed expenses do not depend on consumption of a good or service. A fixed expense is a cost which does not change, or changes very slightly. They are usually paid on a regular basis such as week to week, month to month, or year to year. Usual household fixed expenses are mortgage or rent payments, car payments, real-estate taxes, insurance payments, and the like.
Variable expenses change depending on your consumption of a good or service. A variable expense is a cost that changes significantly from period to period, such as week to week, month to month, quarter to quarter or year to year. Typical household variable expenses are household maintenance expenses such as painting or yard care, general expenses such as clothing, groceries, and car maintenance and fuel, and utilities such as electricity, gas and water.
It’s simple. We have expenses, we have income. We subtract our expenses from our income and if there is any left over, we’re ahead. If it comes out even, we’re okay. If there are more expenses than we have income, we’re in trouble. The same thing, incidentally, applies to governments but they don’t understand it.
Take a trip to la-la-land, called by some Washington, D.C., home of the politician, those people who, generally, aren’t financially smart enough to hold a real job where they would be paid for their ability to produce something of value. As a result, they increase expenses, faster then they can collect income from taxation.
In the past three years, this hasn’t been a problem to them. This year it is a problem as it is an election year. And they want to get reelected. Not getting reelected and being forced to actually work for a living, strikes such terror to them that they become brain dead and lose all sense of reality. Even worse, if not reelected, they will have to live under the insane laws they have enacted in the past.
They realize two things. They can’t pay the bills and they are worried that the overtaxed populace will catch on to their idiotic spending and inevitable tax increases business and individuals. They need to fool the folks into believing that they are getting financial help from the government in the form of decreased taxes.
“Hey,” they say. “We’re going to save you money on your taxes, therefore, you will be able to spend more, and the economy will be saved.” They won’t tell you that the national debt, what we owe, is larger than the national gross product, the total amount of goods and services our economy is producing. (The United States owes 15.5 trillion dollars, an expense, and takes in 2.3 trillion dollars in taxes, income. The national gross product is 15 trillion dollars.)
One of the hottest issues this year is Social Security. It is very visible as a Social Security tax deduction is taken out of everybody’s paycheck, except the Congress and Obama’s mob who excused themselves from having Social Security.
Their solution to make them look good is to decrease the amount people pay into Social Security from 6.5-percent to 4.5-percent. If you are making $50,000 a year, your saving is only $1,000 but you still have to pay $2,250. Wow! This is going to make a huge difference in the economy and solve a working man’s financial problems. Or will it?
Social Security is going broke. It was on a sound financial basis until President Lyndon Johnson stole money from the Social Security Trust Fund for the Vietnam war, Medicare and Medicaid, and other welfare schemes. Today most of the Social Security payments are being taken from a combination of the Social Security Tax and Income Tax.
Social Security payments are a fixed expense and paid on a monthly basis. It is a fixed expense by law, one which Obama hasn’t yet gotten around to changing by another executive order. The loss to the Social Security Fund due to the 2-percent drop in the tax to employed people will amount to 155-billion dollars a year. Think about it. One-hundred-fifty-five billion dollars which will have to be made up from some other source. More borrowing? Increases in taxes? Remember that Social Security has to be paid. No choice.
The point is that the 155 billion has to come from somewhere. They won’t tell us where it’s coming from. The politicians will lie to you in an attempt to make you believe they are helping you. The big lie is that the two-percent decrease in the Social Security tax is going to make life better by allowing you to spend more. A second big lie is that by collecting less money for Social Security will somehow cure the Social Security deficit. A third lie is that collecting less Social Security tax will cure the overall fiscal crisis. It just isn’t going to happen.
It is time to stop paying able-bodied people for not working. Two years of unemployment benefits is criminal.
It’s time to stop foreign aid to countries who are our enemies, including Muslim countries, China, North Vietnam, and South American countries which are socialist and communistic.
It’s time to shut down the borders and keep the wetbacks down south where they belong.
It’s time to send the illegal Mexicans, Guatemalans, Haitians, and other Latino freeloaders back to where they came from.
It’s time for unions to take some responsibility for the state of the economy instead of just its money.
Most and foremost it’s time to get rid of the dunderheads in Washington, D.C., from Obama, Pelosi, Holder, and the rest of that criminal element, as well as the Congress, be they Republicans or Democrats. Voting for any increase in spending should be an automatic veto to their election.
It is impossible to reduce the debt without reducing spending. No amount of smoke and mirrors, lies, pronouncements or whining, will ever change that fact! We are being dragged into national bankruptcy by asinine spending bills designed to bring our economy down.
We have lost much of the freedom and liberty we had only live years ago. We won’t be able to get it back. Wake up! Do something. Prevent losing all our liberty, freedom, possessions, and livelihood. Wake up. Get involved.
No comments:
Post a Comment