California

Fox News just reported that California’s’ unemployment system has no money and that the State has already borrowed $9 Billion from the Federal Government in order to continue to pay these benefits (bailout?).  Moreover, that it has a structural deficit of $20 Billion (meaning that their budget is, for all practical purposes, permanently out of balance by that amount).

Their credit rating is the worst of any of the 50 States.  Their high school drop out rate is 32% despite having one of the most expensive systems in the Country.

Considering this they just elected a liberal Democratic Governor Brown, and Representative Boxer.  Where do they get off?  When will they get serious?

It appears that they expect the Feds to continue to bail them out.

I don’t know about you but I say NO.  I do not want to be a part of providing them with money to waste on their Liberal ways.

If we are not careful the rest of the Country will look like California sooner then you may think.  Let’s all study California in order not to repeat her mistakes.

For more see the following article:

The American Dream Waking People Up And Getting Them To Realize  That The American Dream Is Quickly Becoming  The American Nightmare

 

Taxes as a Percentage of GDP

TThe Federal Government collects taxes which historically amount to 20% to 25% of gross domestic product (GDP). GDP is the value of all products and services produced and sold during a particular period. I have for many years thought that total taxes, after considering local ones, amount to closer to 50% of income.

I just found this link which will allow you to see the spending, as a percentage of GDP, of the Federal government as well as for State and local governments.

It supports my belief. That is that State and local taxes also amount to between 20 and 25% of their respective GDP’s.

Thus, on average, once you pay your Federal income taxes, your State income taxes, your State and local sales taxes and your property taxes etc., you have spent about one half of what you earn (your GDP).

Considering that about half of working people do not pay any Federal Income taxes at all it would be fair to say that many of us pay considerably more than half our income for taxes of various kinds.

It is too bad that the politicians spend this money like drunken sailors. If they would view these funds as they do their own they would not want to waste it. But they do not view the public’s money in that way but as a source of funds to further their power hungry gold digging ways.

I just heard David Stockman (budget director under President Reagan) say that in the last 30 years the size of the US economy has tripled while spending is 14 times higher. That means that spending has out paced revenue growth by almost 5 to 1.

If you or I managed our household in that manner we would have long ago been bankrupt. The big difference is that you and I cannot print our own money. And the Feds cannot do it forever either. It cannot last!

Rick Adamson
11/7/2010he Federal Government collects taxes which historically amount to 20% to 25% of gross domestic product (GDP). GDP is the value of all products and services produced and sold during a particular period. I have for many years thought that total taxes, after considering local ones, amount to closer to 50% of income.

I just found this which will allow you to see the spending, as a percentage of GDP, of the Federal government as well as for State and local governments.

It supports my belief. That is that State and local taxes also amount to between 20 and 25% of their respective GDP’s.

Thus, on average, once you pay your Federal income taxes, your State income taxes, your State and local sales taxes and your property taxes etc., you have spent about one half of what you earn (your GDP).

Considering that about half of working people do not pay any Federal Income taxes at all it would be fair to say that many of us pay considerably more than half our income for taxes of various kinds.

It is too bad that the politicians spend this money like drunken sailors. If they would view these funds as they do their own they would not want to waste it. But they do not view the public’s money in that way but as a source of funds to further their power hungry gold digging ways.

I just heard David Stockman (budget director under President Reagan) say that in the last 30 years the size of the US economy has tripled while spending is 14 times higher. That means that spending has out paced revenue growth by almost 5 to 1.

If you or I managed our household in that manner we would have long ago been bankrupt. The big difference is that you and I cannot print our own money. And the Feds cannot do it forever either. It cannot last!

Rick Adamson
11/7/2010The Federal Government collects taxes which historically amount to 20% to 25% of gross domestic product (GDP). GDP is the value of all products and services produced and sold during a particular period. I have for many years thought that total taxes, after considering local ones, amount to closer to 50% of income.

I just found this which will allow you to see the spending, as a percentage of GDP, of the Federal government as well as for State and local governments.

It supports my belief. That is that State and local taxes also amount to between 20 and 25% of their respective GDP’s.

Thus, on average, once you pay your Federal income taxes, your State income taxes, your State and local sales taxes and your property taxes etc., you have spent about one half of what you earn (your GDP).

Considering that about half of working people do not pay any Federal Income taxes at all it would be fair to say that many of us pay considerably more than half our income for taxes of various kinds.

It is too bad that the politicians spend this money like drunken sailors. If they would view these funds as they do their own they would not want to waste it. But they do not view the public’s money in that way but as a source of funds to further their power hungry gold digging ways.

I just heard David Stockman (budget director under President Reagan) say that in the last 30 years the size of the US economy has tripled while spending is 14 times higher. That means that spending has out paced revenue growth by almost 5 to 1.

If you or I managed our household in that manner we would have long ago been bankrupt. The big difference is that you and I cannot print our own money. And the Feds cannot do it forever either. It cannot last!

Rick Adamson
11/7/2010

Obama and Economy

I must admit that I am astonished at President Obama’s lack of understanding of economics and business. He seems to believe that he can (or should be able to) manage all things from the oval office.

His omnipotent personality causes him to get involved in things he has no business doing, e.g. his comments about not going to Las Vegas resulted in the cancellation of 400 conventions in the city according to Nevada Governor, what business is it of his whether a Mosque is built in Manhattan?, calling the police stupid for arresting a belligerent College professor, opposing Arizona’s new Immigration Law (before reading it), whereby people are just trying to protect themselves because the Feds will not.

He should just quit babbling and get out of the way.

He is currently acting out of desperation (due to the upcoming election) to do something (anything) to stimulate the economy. The problem is a lack of demand and he cannot do much about that domestic demand. He has proposed giving business additional write-offs for research and development and for purchased equipment. There is also a tax credit provision on the books for hiring employees.

These types of incentives will not work because businesses will not respond until there is a demand for their products or services. They will not hire people in order to get a tax credit if there is nothing for the employee to do. They will not buy equipment just to get the write-off if they do not need the equipment.

One way to stimulate demand is to encourage companies to export products. What about some incentives/tax breaks in this regard? This would allow business to be more competitive (reducing their selling prices) and result in more exports.

It should be noted that the countries with the best economies at the present time are exporting countries like China, India, Germany and Japan.

Stimulating demand domestically is very difficult and it probably will take a long time to recover because people have been so badly burned.

I think the best thing Mr. Obama could do is to reduce the uncertainly about government policy and let the private sector take care of itself. This could be done by making the Bush Tax cuts permanent, stop all talk about raising any taxes (cap and trade, taxes on companies operating outside of the country, eliminating the Bush Tax cuts and higher taxes on oil and gas companies).

Let’s eliminate as mush uncertainly as possible and let the private sector move ahead.

Mr. Obama does not seem to understand that tax increases on companies do not hurt those companies because they just increase the price of their products. So, it forces the consumer to pay higher prices which further reduces demand. This is the opposite of what we now need.

I wish he would just get out of the way and let the economy recover naturally, because it cannot be done by Washington.

Rick Adamson

More on the Coming Tax Increases

Some Thoughts About the Pending Tax Increases

The Democrats constantly refer to the Bush tax cuts as tax cuts for the rich. That is a lie. The majority of the tax reductions went to those in the not so rich category.

It has been reported that by letting the Bush tax cuts expire Government revenue would increase by $700 billion per year. It has also been reported that of that figure about 10 percent would come from those making over $250,000 per year.

That leaves 90 percent or $630 billion to be paid by the rest of us. So much for the promise of no new taxes on the middle class.

It, therefore, seems logical that if 90 percent of the tax increase (resulting from the expiration of the Bush tax cuts) will come from the not so rich then 90 percent of the tax reductions went to these same not so rich people in the first place. This proves that the Bush tax cuts were not only for the rich.

The Bush tax cuts were not such a bad idea. They removed the marriage penalty, increased the child tax credit, made the death tax much more reasonable and reduced the tax rates for everyone, among many other good things.

For example, it has been reported that almost 50 percent of taxpayers do not pay any income taxes. Thanks go to Bush not Obama. This percentage will go down if the Bush tax cuts are allowed to expire and cause more folks to pay tax.

If Obama is so hell bent on taxing the rich just make one simple change. Make the Bush tax cuts permanent and add a new tax bracket for income over 250,000—39.6. Stop.

In addition, in my personal opinion, the estate tax should be reinstituted for estates above $5,000,000 with a maximum rate of 35 percent.

As an aside, the problem with our deficit is not so much the tax cuts but the fact that Government spending increased so much. Spending increases have exceeded the effect of the tax cuts by nine times.

Lastly, we could just scrape the whole damn mess and put in the Fair Tax Plan. To read about that select the “A case for the Fair Tax Plan” post.

Rick Adamson, CPA

USA Today Article on Debt

Check out this article:

http://www.usatoday.com/news/opinion/editorials/2010-05-06-editorial06_ST_N.htm

Here Comes Biggest Tax Hike in History

Here Comes Biggest Tax Hike in History

“Tax Increases are Highly Contractionary” and “Our estimates suggest that a tax increase of 1 % of GDP reduces output over the next three years by nearly 3 %. The effect is highly significant." Christina Romer, Obama’s chief economic adviser.

When the calendar turns to 2011, the Bush tax cuts will expire; ObamaCare will rear its ugly tax-hungry head and massive new government regulations will be imposed.

For example, did you know that under the new health care bill – all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don’t kick in until 2013 (presumably after Obama’s re-election). You can thank Nancy, Harry and Barack and your local Democrat Congressman for this one. If you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Is this “Hope & Change” great or what? We can vote the bums out in November and demand that they eliminate the bill or at the very least defund it. Then in 2012 repeal it. (Comment credited to Frank Bagrier of UBS)

For a detailed list of all of the tax provisions slated to change January 1, 2011 click this link: http://spreadsheets.google.com/ccc?key=0As-ofA03F4YBdGtUMXRqVnpCdHdVSW52bjF4WlhsOWc&hl=en&authkey=CNvAuvcJ

When this happens our time and money will no longer our own. We become more and more subservient to the Federal Government. This would not be so distasteful if our rulers were not such spendthrifts and incompetents. They cannot manage anything. They do not even try. It is just easier to let spending run wild and raise our taxes.

Some say that we have seen no tax increases under Obama. They say Obama, "gave 95 % of all Americans a tax cut." Factually, that’s right. But in reality the average worker only got $13 more per week in his or her pocket. Looks like Obama just barely made the cut. Just enough to be able to say he "cut" taxes.

If these jokers were honest they would stop promoting Obama's small tax cut and start warning you to get ready for 2011. When the taxpayer is hit with this massive increase in taxes and thousands of new regulations, their collective blood pressure is going to go sky high.

Taxpayers are about to experience the largest single tax increase in American history. Top federal tax rates are about to rise from 35 to 39.6 %. Every taxpayer, at every level, will see a rate increase. The bottom rates actually jump 50 % (from 10% to 15%).

Comment: It has been widely quoted that approximately 47% of American workers pay no income tax. While this is true, they have Bush to thank not Obama or the Democrats. The 47% is going to decrease when the Bush provisions expire

Unless, you die on or before midnight Dec. 31, 2010, inheritance taxes on estates over $1 million will increase from zero to 55 %. And dividend taxes jump from a flat 15 % to a maximum of 39.6 %, a 163 % increase. Taxes on capital gains will increase from a maximum of 15 % to a maximum of 20 % for individual taxpayers.

Teachers will no longer be allowed to deduct their out-of-pocket classroom expenses or the interest on their student loans. But worst, the "ObamaCare" taxes and regulations begin to kick in on Jan. 1.

Did you know that starting in 2011 (next year folks) Title IX Revenue Provisions- Subtitle A: Revenue Offset Provisions-(§ 9002) requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage.

To see a list of recomendations you should consider between now and December 31, 2010 click on the following link: http://docs.google.com/document/edit?id=1sTCyqUXNxMPT5JOHD4vZrbsX0meAYvEdTBE6Lj_7DBI&hl=en&authkey=CNXTldAM

Rick Adamson

Website: http://adamsonhood.con

Blog: http://adamrick.blogspot.com/

713-956-6266

Declare Your Independence

Following is an article by the President of the NRA published in the July 2010 edition of American Rifleman. It is, in my judgment, one of the best commentaries I have seen regarding our rights (and what is happening to them) as citizens of these United States.

Please do not be put off by the author’s position because regardless of your opinion of guns, this article expertly describes how we are being treated by politicians in a variety of areas affecting our daily lives.

While reading the article I was reminded of another piece I recently read. It talked about the fact that the world has never lacked for people who believed that they had a right to change others—if fact a demand for power over other people’s lives. It said that we have learned through sad experience that few people can be trusted with such power. In fact, it continued, the world’s painful history shows that these power-seeking people are usually persons we should never want to have as good human models and that we have learned that few people are safe judges of what others ought to be.

Let us make some real changes and get the Government off our backs. Let’s see if we can convince a new bunch of politicos to do their job (protect the people, the borders and our National interests and enforce the laws that are already on the books) and otherwise leave us alone. We do not need new laws we need the existing ones enforced.

Rick Adamson

OFFICIAL JOURNAL SPECIAL REPORT

president's column

By Ronald L. Schmeits, President

Declare Your Independence When You Vote Freedom First!

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."

This month, 234 years ago, our country's Declaration of Independence made some of the most profound and powerful politi­cal statements ever expressed.

Yet today, for the sake of partisan gain, many in the political class are attacking the eternal truths that frame our nation's founding documents as outdated, even dangerous.

So in honor of Independence Day, let's revisit some of the ideals at the core of this country's experiment in self-governance to consider what they mean in 2010 America.

The Declaration of Independence severed the colonies' dependence upon England, but the idea of individ­ual independence was central to the Founders’ thinking.

Being independent meant you were free to fend for yourself, trusted to exer­cise your freedoms and allowed to excel or fail as a result of your own decisions without interference.

Yet today, many politicians seem to want to make people less independent and more dependent upon govern­ment—for bailouts, buyouts and a variety of preferential treatments—and to provide for every need.

This is the opposite of what the Framers intended. Government should be depen­dent upon, and subject to—in the words of the Declaration of Independence—"the consent of the governed."

But when those roles are reversed— when politicians put the people in the position of being dependent upon and beholden to them—our freedoms invari­ably suffer.

That about the idea that government gets its authority from the people?

George Washington wrote, "The power under the Constitution will always be in the people." Indeed, our Constitution begins with the words "We the people."

Thomas Jefferson wrote, "Every government degenerates when trusted to the rulers of the people alone. The people themselves are its only safe depositories."

Yet today, many politicians are turn­ing their backs on the people.

When politicians say one thing during their campaigns, but do the opposite after they're elected, that says they don't care what the people think or want. It's the same arrogance King George and Parliament expressed for American colo­nists in the 1700s.

When politicians take away your abil­ity to make your own choices, that says they don't trust you with the freedom to make your own decisions.

We know better than you how you should live your life, they say. So they try to dictate everything from how you run your business to how much salt you have in your food.

We've seen politicians demonstrate all of these vices—elitist arrogance, distrust of freedom and disdain for the people—in the gun debate for decades.

They don't trust you to own or use a firearm safely or lawfully, so they seek to delay, diminish or deny your Right to Keep and Bear Arms.

To convince you to surrender your freedom, they promise you security. They say you don't need a gun because the police will always be there to protect you.

But as countless victims of crime through the ages could tell you, the promises of politicians didn't protect them any more than their own prayers and tears.

Sometimes you can't count on any­one but yourself. That's what indepen­dence means. In this case, the other side of the coin—being dependent—means being defenseless.

But you're not defenseless from arrogant politicians.

The sacred beauty and supreme genius of what the Founding Fathers built for us through the Declaration of Independence, the U.S. Constitution and our Bill of Rights is that we the people will always have the tools and ability to retain control of our country.

This year that ability will be demon­strated with your vote and the vote of every American who wants to be free.

The danger we face is that between 20 and 25 million American gun owners are not registered to vote.

So between now and Election Day, November 2, be like Paul Revere. Sound the alarm to freedom's faithful.

Spread the word to your family, friends, fellow parishioners, co-workers, neighbors and anyone who will listen.

Then get them to do what their free­dom demands: Register to vote today. And on Election Day, Vote Freedom First!

Together, let's use our votes to restore to our country the purpose, promise and blessings of freedom that attended her birth 234 years ago this month.