●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●Cutting the deficit is the government’s method for taking dollars from the middle class and giving them to the rich.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
The richest 1% feel it isn’t enough that President Obama raised FICA again, so that a salaried worker making $50,000 a year will pay an additional $1,000 in taxes. No, there needs to be more pain for the middle- and lower-income 99%. The gap must be wider.
And the richest 1% feel it isn’t enough that the qualifying age for Social Security has been raised two years, and discussions are underway to raise it further. The gap must be wider.
And the 1% feel it isn’t enough that every politician is making plans to cut federal spending, and virtually all of these cuts will negatively impact the 99% far more than the 1%. No, it isn’t enough, it never is enough and it never will be enough. The gap must be wider; there must be ever more pain for the non-rich.
And here it comes:
Governors Push Bigger Reliance on Sales Taxes
By RICHARD W. STEVENSON, New York Times
Published: January 24, 2013
WASHINGTON — Republican governors are moving aggressively to cut personal and corporate income taxes, including proposals that would increase reliance on state sales taxes, setting up ambitious experiments in tax reform that could shape what is possible on a national level.
In Louisiana, Gov. Bobby Jindal is pushing to repeal the state’s personal and corporate income taxes and make up the lost revenue through higher sales taxes. Gov. Dave Heineman of Nebraska is calling for much the same thing in his state. Gov. Sam Brownback of Kansas wants to keep in place what was supposed to be a temporary increase in the state sales tax to help pay for his plan to lower and eventually end his state’s income tax.
They are focusing attention on the idea, long championed by conservatives but accepted up to a point by economists of all stripes, that the economy would be better served by focusing taxation on consumption rather than on income.
Translation: The 1% would be better served by a reduction in their taxes and an increase in taxes more heavily impacting the 99%.
Taxing consumption has the potential to lift economic growth by encouraging more savings and investment.
Translation: Taxing consumption has the potential to reduce consumption, which will reduce economic growth, by encouraging less spending. Reductions in economic growth negatively affect the 99% far more than the 1%.
But the shift could also increase inequality by reducing taxes predominantly for the wealthy, who spend a smaller share of their income than middle- and lower-income people.
Exactly. That is the whole point.
Beyond citing economic growth, the governors and their supporters say their plans would help make their states more competitive in attracting employers and high-skilled workers, simplify their tax systems and curb pressure for more government spending.
Translation: Beyond reducing economic growth, their plans would please their wealthy supporters, punish lower skilled workers and curb pressure for the federal spending that would benefit the 99%. But it would be simple, just as death is a simple solution for disease. (Tax “simplification” is the sales slogan for more onerous taxation.)
For Mr. Jindal and other Republican governors who are considering a presidential run in 2016, there are obvious political benefits to having a robust income tax-cutting record to present to conservative primary voters.
Translation: He’ll be able to say, “Support me. I have a great record for widening the gap, and crushing the 99%.”
But Democrats say the approach would lead to cutbacks in education, health care and other vital services while shifting relatively more of the tax burden to those who can least afford it.
“These aren’t pro-growth policies — they’re shell games that reward the wealthiest Americans at the expense of everyone else,” said Danny Kanner, a spokesman for the Democratic Governors Association.
Again, that is the whole conservative point.
While all politicians, Democrats as well as Republicans, rely on financial support for the wealthy (even more so with the right-wing Supreme Court “Citizens United” decision), the Republicans lately have evolved to become the true “Party of the Rich.” There is no limit, and will be no limit, to their efforts to reward the 1% at the expense of the 99%.
The ongoing goal of royalty always has been to put ever more distance between themselves and the peasants. Enough never is enough.
As recently as Reagan, I tended to vote Republican. But of late, the party has become way too crazy. Today, if you earn less than a half million dollars a year, or have less than perhaps $20 million – $30 million in net assets, you are a fool to vote Republican (unless your hatred for blacks, browns and poor women is stronger than your concerns about your own finances).
Sadly, there are an awful lot of fools in America. And they and their money are being parted.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports