●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.
Here is how deficit reduction really works:
We told them we’d raise
taxes only on the rich
Then we increased FICA
Cut food stamps . . . Cut Social Security . . Cut Medicare
Widen the gap between the rich and the rest of us
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
7 thoughts on “Middle class screwed again. FICA increased. Gap between the rich and the rest grows”
In typical fashion, AARP published an article titled, “Cliff Averted, Congress Staves Off Tax Hikes” with no mention of the huge increase in FICA.
Anyone who thinks AARP is an ally to the salaried and the elderly, is kidding themselves.
Stepping outside of understanding Monetary Sovereignty for a moment….
If FICA was allowed to increase, but some other tax(es) decreased more, then NET taxes on middle and lower income people would decrease… meanwhile giving the ‘appearance’ of SS becoming more solvent. (obviously just ‘appearance’ since we understand Monetary Sovereignty).
This would require some tax decreases more substantial than the FICA increase. Anything to this?
I know of no tax that comes close to punishing the middle- and lower classes and the economy, as much as FICA. Not only is it 100% useless, but it dramatically increases the gap between the rich and the rest.
It takes more than 15% from workers paychecks (the “business” part also comes from paychecks),
FICA is a disaster for the American economy, and increasing some other tax (what tax?) would not change that. Unfortunately, the American worker has been so brainwashed by the wealth/political/media establishment, the people don’t understand what is being done to them.
We need jobs very badly. We need businesses to hire more people.
However the increased FICA tax worsens unemployment, punishes businesses, drives down wages, and steals money from individuals who collect $117,300 a year or less.
As a business owner, why should I hire another person if I must pay an addtional tax that matches his FICA tax? Why should I give anyone a raise? The more I pay employees, the more I must pay to the government.
As an average unemployed American, if I cannot get a job during this recession, then I am not paying a FICA tax. So, when I eventually apply for Social Security, I may get little or no SS benefits.
This suits the 1% very well.
Most people are selfish idiots, yet they do not like to see homeless Americans starving in the street. Most people avert their eyes and ignore the unfortunate ones, but they they would naturally prefer that no one go homeless and hungry.
However the 1% and their puppet politicians are not most people. They genuinely want to see more pain and anguish in the public.
Anyone who denies this is a fool or a liar. Denial includes the claim that politicians, bankers, Treasury bureaucrats, etc. simply “misunderstand” national finances.
Deficit cuts to grow the economy are like eating your own legs for nourishment. You run short of legs..
…or how about burning down your home in winter to stay warm?
There’s a lot of rangling about how to make taxes fair, flat tax, graduated tax, etc. The fairest federal tax system is no tax. Everyone is affected equally, otherwise equality is impossible.
Right. See: https://rodgermmitchell.wordpress.com/2010/12/16/which-taxes-are-fairest-which-taxes-are-least-fair/