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●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 ultimately leads to civil disorder.
●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.
●Everything in economics devolves to motive, and the motive is the gap.
Today, in the Email I received an appeal from Professor Robert Reich, asking me to sign his petition. As background:
Robert B. Reich, Chancellor’s Professor of Public Policy at the University of California at Berkeley and Senior Fellow at the Blum Center for Developing Economies, was Secretary of Labor in the Clinton administration.
Here is what Professor Reich said:
Sign my petition: Burger King’s craven tax dodge
Did you hear the news about Burger King? A few days ago, Burger King announced merger talks with Tim Hortons restaurant — a so-called “tax inversion” dodge to lower its U.S. taxes by claiming it’s a Canadian company, headquartered in Canada.
The pending deal is welcome news to investors, who sent its stock up nearly 20 percent the day it was announced.
But it’s a lousy deal for you and me and other Americans because we’ll have to make up for the taxes Burger King stops paying.
We’re already subsidizing Burger King because it refuses to raise the pay of its frontline workers. That means we’re paying for the food stamps, Medicaid, and wage subsidies Burger King employees need in order to stay out of poverty.
If Burger King deserts America to cut its tax bill, we’ll be paying twice. That’s a whopper of a slap at America — and another blow to the fight against income inequality.
Please sign my petition calling for Burger King to reverse their plans to abandon America. If Walgreens can change their mind, so can Burger King.
Working together with a coalition of progressive partners, DFA members across the country successfully pushed back on Walgreens to drop similar plans to desert the United States.
Burger King, like Walgreens, is highly visible to consumers. With your help, we can generate enough pressure to stop this bad deal for America and prevent other companies from taking similar steps. Corporate greed can’t be stopped, but even greedy corporations depend on the goodwill of their consumers.
Join me in calling for Burger King to kill their outrageous deal to dodge American taxes.
Burger King wishes to pay less federal taxes. So do you; so do I. Over the years, I have followed the tax laws. For instance, given the alternative of taking long-term gains vs. short-term gains on stock, I have opted for long term. Why? Lower taxes.
That, according to Professor Reich, means I am “greedy” and helping cause “income inequality.”
I also have a tax-deferred IRA, which apparently means I am taking a “slap at America” and essentially am “deserting America.”
Are you an equally “craven” tax “dodger”? Or are you patriotic by paying more taxes than the law demands?
Now let’s get to the facts:
First: Paying federal taxes does not help America; in fact it hurts America by reducing the money supply. The federal government, being Monetarily Sovereign, neither needs nor uses your tax dollars. The more taxes Burger King pays, the less money there is in the economy, and the less they will have for growth and payrolls.
Increased taxes widens the gap between the very rich and the rest. Asking American business to pay more taxes is about as unpatriotic as it gets.
And remember, businesses are not the actual payers of taxes. They merely collect tax dollars from employees and customers, and pass the dollars on to the government.
The very first step in the “Ten Steps to Prosperity is: “1. Eliminate FICA.” Why, because FICA is a federal tax that drains dollars out of the economy, and particularly out of the middle- and lower income groups.
Second: Implying that a company (or an individual) is unpatriotic if it legally pays as little federal tax as possible, is ridiculous. Think of your accountant telling you, “You’re entitled to this deduction, but don’t take it, because the federal government needs the money.”
There are only three reasons why Professor Reich would circulate such a petition:
1. He is stupid or or otherwise addled, or:
2. He is ignorant of the facts, or:
3. He has been bribed by the upper .1% income/power/wealth group.
I doubt he is stupid.
Not being an economist (He’s a politician), he may be ignorant of the differences between a Monetarily Sovereign government and a monetarily non-sovereign government.
And as a politician paid by a university — a university that makes a massive effort toward money collection — he may have been bribed by his job. That is one of the two ways politicians are bribed.
As I long have stated, politicians are bribed via campaign contributions and promises of lucrative employment later. Clearly, soliciting and receiving millions of dollars to vote in a way beneficial to a “donor,” could not conceivably be considered anything but a bribe.
Only a bought-and-paid-for liar like Justice Scalia, could claim campaign contributions constitute “free speech.” I’d like to be able to buy food, housing or a new car with “speech.”
But what about when a politician leaves office and those lovely campaign contributions (uh … “free speech”) end. That’s when the promises of lucrative employment kick in.
On Wall Street, America’s mighty job creators are finally reaching out to the recently-unemployed, by creating a job for ex-Rep. Eric Cantor. He’ll be a new vice chairman for the investment firm Moelis & Co.
How nice that they’re going to take a chance on a guy with no experience in the industry, and start him off at a decent living wage:
Moelis will pay him an annual $400,000 base salary … Cantor also received a $400,000 cash payment and $1 million in restricted stock that will vest after his third, fourth and fifth anniversaries with the company.
In 2015, Cantor will receive a minimum incentive payment of $1.2 million in cash and $400,000 in restricted stock, the filing said.
This $3.4 million payday — which doesn’t count a stipend to cover the cost of a Manhattan apartment — shouldn’t be considered entirely as compensation for all the grueling work he’s going to do for the firm. It’s more like a reward for services rendered over his congressional career.
Eric Cantor spent his career buttering up wealthy donors, meeting with wealthy lobbyists for powerful industries, and writing policies to their specifications. All along, he knew that at the end of the road he’d have a chance to join the ranks of the people on whose behalf he’s been working (albeit earlier than he expected).
Cantor’s new $3.4 million job is a hearty thank-you from the constituents he really cared about. And it’s a strong signal to other politicians of what’s in it for them if they act like Cantor.
Bottom line: Do and say as the rich want you to do and say, and they will take care of you and your loved ones, forever.
The very rich receive little, if any, income from salaries, and percentage-wise, they spend less of their income on taxed consumption. So, the very rich always are happy to see business employees and customers pay more taxes. That helps widen the Gap between the rich and the rest, and it is the Gap that the rich treasure most.
That is why they brainwash the populace into believing federal taxes are necessary, and paying more federal taxes is patriotic (except for the very rich, of course).
Too bad Walgreens caved. Had they saved tax dollars, they might have expanded more, hired more people, lowered prices and helped maintain more dollars in the economy — much to the benefit of the middle- and lower-income groups.
Rodger Malcolm Mitchell
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports
THE RECESSION CLOCK
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.