Republicans Are Not Only Out To Help The Rich: RNC Chairman – Source: The HuffPost

Republican National Committee Chairman Reince Priebus defended the GOP on Sunday against the notion that its policies only favor the rich, arguing that Republicans are out to create jobs and cut taxes for people of all income levels. (Read more)

Response: So where are the jobs? Folks on unemployment has to be taxes on that money but rich folks are exempt? What a strange world we live in. Curmilus Dancy II – The Political Agitator

Cain Has Another Issue With Women: Taxes – Source: The Root

GOP presidential candidate Herman Cain’s controversial tax plan may cost working women more overall than their male counterparts, writes Chicago Tribune columnist Clarence Page. It’s because women are disproportionately likely to be single parents and to have lower wages, smaller pensions and more medical problems, he writes, citing census statistics. (Read more)

See related:

Herman Cain

40 House Republicans Sign Letter Saying They’re Open To Tax Increases – Source: Think Progress

Forty House Republicans joined 60 Democrats today in a letter calling on the congressional super committee to consider “all options” in crafting a deficit reduction package, including increasing revenues. As the AP notes, the “letter puts about one-sixth of House GOP lawmakers on record as saying the supercommittee should consider collecting more taxes.” From the letter: (Read more)

See related:

House Republicans make cross-party pitch to embolden debt ‘supercommittee’ – Washington Post

Rocky Mount holds the line on taxes, fees – Source: The Rocky Mount Telegram

The Rocky Mount City Council received a welcome bit of news this week when city staff presented the budget for next fiscal year. (Paid Content)

[GrassrootDems] YOUR MONEY, YOU SPEND IT, IF IT EVER GETS TO YOU

Circulate freely.

YOUR MONEY, YOU SPEND IT, IF IT EVER GETS TO YOU

Our politicians and (wealthy) TV pundits repeatedly tell us that tax cuts and
rewarding the rich will cure the economy. In all these years that we have
adopted this policy it has not happened. Are we going to continue to believe
them?

I am going to compose a story I hope you will enjoy reading.

I made a deal, and for fulfilling this obligation I was paid $100 (I shall use
$100 as a base). I enjoyed the use of this newly earned wealth which I spent
passing the $100 to A, who in turn dealt with B. This $100 then passed on to C
then D and kept moving reaching Z +. Amazing the same $100 pleased so many.

That is what I envisioned; I have yet to close the deal.

“Well Mr. Uncle Sam, I am ready to proceed with the arrangement as proposed and
tentatively agreed upon.”

Mr. Sam responds,” It is a beneficial project with good value for the
expenditure. However, Congress just passed a tax cut, reducing our revenue, so
we have to drop this and many other projects.”

I am devastated. I needed that money, holding back my tears I said, “Do you
realize Mr. Sam I am going to be short of money. I will not be able to make my
mortgage payment, and very soon I will be behind on my car payment.”

Sam responded, “Oh I do realize that, but sympathy on my part will not generate
the funds needed. I will be shedding far more tears than you will. I am also
thinking of A and B and all those through Z+ who will also be deprived of the
money you would have helped circulate. My sadness far exceeds the sadness of you
and all your potential beneficiaries combined, because I will not be collecting
taxes on the $100 (basis) that you now will not earn. I will be deprived of all
the taxes I would have collected from A and B and all those through Z+. It is an
irony the tax cut will take your tax to zero. Too bad your income will also be
zero. Yours is only one of many projects that I have to cancel. This will add to
my deficit in a very big way. We all know that the bulk of tax savings will wind
up in pockets of the rich. The politicians claim that the money will trickle
down. I suggest you try to sell your project to one of them.”

“Mr. Rich, if you will not buy my proposal, please give me a job. We have been
told that people with money, because they have the money, will hire.”

“Sorry I must laugh, though I sympathize with your plight. I need an incentive
to hire. I hire employees to help me make money. Currently the consumer demand
is low. In my opinion the recent tax cut will put most of the money in the hands
of the super rich, whose spending needs have already been met, and who will not
spend it. This will decrease the money circulation, further reducing the
consumer demand. Unemployment will increase, diminishing even more, the
consumer’s ability to spend. There are other rich people I suggest you try
elsewhere.”

“Mr. Wealthy, please give me a job. Congress tells us the newly passed tax cuts
will enable you to employ people.”

“I could do that. Are you willing to relocate to Chinaand accept the wages we
pay there?” I have shut down factories in this country where the cost of labor
is high, and relocated them in China.”

Mr. Wealthy smiles “I have invested heavily in our trade association. They have
put together a massive lobby to convince Congress to expand trade agreements.
Congress has done so and tells us it is good for the nation. I believe it. Add
to my cost savings, the Chinese are far more relaxed on safety and environmental
standards. I love our Congress and I love you people. With less money in your
pocket you seek out the cheaper ‘made in China’ products. Some American
manufacturers cannot compete and take action that results in poorer consumers,
who now also seek the cheaper Chinese goods!

“You should seriously consider applying for the Chinaposition. We have
successfully reduced jobs available in the U S, while Congress maintains a loose
control on immigration resulting in more people competing for fewer jobs. This
squeezes employee compensation and almost destroys union bargaining power.”

In my desperation I have to compete with the illegal immigrants. “Mr. Farmer,
they tell me there are jobs that Americans will not do, so you hire immigrants.
I am an American, and I need the work. I will accept any job at your rate.”

“You being an American makes it a problem. I pay the immigrants under the table,
and it would be risky for me to do it in your case.”

I am stunned by his blatant response. “You know it is illegal to hire
undocumented immigrants.”

“I know. Our strong lobby keeps Congress from enforcing that law. Then thanks to
you and your fellow Americans, for demanding a fence. This gives Congress an
out. They are following up on the ‘deng’ fence. I am amused: they have built a
portion of it. So what is to stop immigrants walking around it? If after a
tremendous expense and time a fence is completed at both the southern and
northern borders, what would stop them from climbing over it or tunneling under
it: better yet they could blow holes through it in more places faster than we
could repair them. Then of course there are the extremely long coast lines. If
someday the economy improves beyond our southern border, the immigrants wanting
to return home may be fenced in the wrong direction. In the mean time we are
over supplied with working people, and this suits us employers. We can keep
wages suppressed.”

Mr. Farmer continues, “You seem like a determined person. Become an
entrepreneur. Get some money from a bank. The banks have a lot of money.”

“Mr. Money Bank, you have my well thought out business plan. Will you loan me
the money?”

“Your plans are impressive, but the risk is too high. Consumer demand is not
sufficient, and the tax cuts will reduce it further as we have seen
historically. Reagan cut taxes in 1981. Recession followed. Then he raised the
taxes and the economy improved. Bush cut the taxes and the economy tanked. He
followed with another tax cut, and he left us in the mess we are still
struggling to recover from.”

Here is some interesting history:
By Larry Beinhart
Created Mar 1 2011 – 10:35am
The current economy is routinely and universally referred to as the worst
recession since the Great Depression.

It makes sense, therefore, to look back at government tax and spending policies
during the Depression and what the results were.

1932– Hoover raises[1] the t op tax rate from to 25 to 63 percent.
1933– Roosevelt comes into office. He begins spending at the same time that new
tax hike comes into effect. The Depression bottoms out.

1934– Recovery begins[2]. The GNP rises 7.7 percent, unemployment falls to 21.7
percent.

1935– New government spending[3] on public works and rural electrification. A
push to strengthen labor and raise wages. New taxes through the creation of
Social Security.

The GNP grows[4] another 8.1 percent, and unemployment continues to fall.
1936– The top tax rate is raised[5] again. This time to 79 percent.
GNP grows a record 14.1 percent; unemployment falls even further.
1937– Roosevelt is afraid of deficits! He cuts spending[6] for 1937.
There’s a new recession. It continues for a year.
1939– The U.S. borrows [7], resumes deficit spending, this time on a military
build-up. The recession ends.

1941– America enters World War II.
In economic terms, it’s the New Deal on steroids. The top tax rate goes up to 91
percent[8]. Nonetheless, government spending is so high that by 1945 the deficit
is 123 percent of GDP[9]. Unemployment is ended by employing 16 million people
directly in the armed forces and millions more are employed producing war
material and supporting the military.

The Great Depression is finally over.
When taxes were raised the economy improved. Every time. Deficits had no
negative effect on the economy. Indeed, when deficits were at their highest, the
economy boomed.

After spending was cut — to balance the budget — a recession immediately
followed. When taxes were raised and government spending resumed — with
deficits — that recession ended.
When taxes were raised again, and government spending went sky high, the Great
Depression finally ended.

So here we are. We refused to raise taxes. The recession continues. Now, we’re
going to cut spending.

In desperation I responded, “You banks are holding up much of the national
wealth. You could initiate the money circulation that would boost the economy.”

Mr. Bank responds, “You put the onus on the banks. We are small potatoes
compared to the federal government. The federal budget is over three and half
trillion. Economic stimulation by the government is enormous. Try this exercise:
assume the government starting this moment stops all spending. About four
million government employees cease to receive their pay checks. Institutions
that government supports come to a halt causing layoffs of millions more.
Businesses contracted by the government will lose their profits and of course
large numbers added to the unemployed. Social services will close down. No
Medicare payments, no social security checks etc. All this money taken out of
circulation will destroy the economy. Many corporations will shut down,
compounding the unemployment.

“Secondly, the rich talking heads like the present conditions and do not want
government to intervene. Our talking heads to promote their personal agenda have
successfully demonized the government. Our falsely demonized government has a
history of outstanding achievements. Let me point to this example: soon after
the Second World War the government guaranteed home mortgages to creditworthy
home buyers. The banks loan business ballooned. For the huge purchase of a home
the buyer borrowed money from future earnings, stretching to as far as 30 years
and put it into immediate circulation. This was multiplied by buyers across the
country expanding the housing market. This in turn boosted the many industries
that participate in the construction of a home.”

“Wall street has destroyed the housing industry,” I reacted. “What else can the
government do?”

“Another astounding achievement to the government’s credit, they put men on the
moon and doing so they circulated money through the economy in a big way. During
that period, the ‘60s we had the best economy the world had ever seen to that
date. Currently we have a serious energy problem. If we would tackle this
problem as we did the space race, we would make ourselves energy independent and
burst out of the recession. However, this will not happen. The lobby against it
is too strong.”

I reflect, “You are advocating the government spend money it does not have. If
families budget their expenses based on their earnings, should not the
government do the same?”

Mr. Banks responded emphatically, “There is a big difference in the handling of
your family finances and that of the government. You see a price tag of $100 and
decide to purchase, but the cashier demands more than the $100 dollars after
adding the sales tax. Now when the government purchases, the government could
offer to pay $80 as tax money has to be paid on the profit. But the government
is smart, pays the $100 and accepts an IOU to be paid April 15. This $100 now
passes on to B and then C and on and on to Z+ and each of them will owe taxes.
The government makes a huge profit on the initial expenditure.

The government stimulation is fantastic. It pays for itself, yielding a profit.
It circulates money extensively and when consumers have money to spend,
businesses expand employing more people and increasing consumers. The economy
spirals upwards. The President is for the stimulation, but a few senators block
the program.”

I am exasperated, “It seems hopeless for me. None of the rich business people
will help me.”

“Try a philanthropist.”

“Mr. Generous, I have looked extensively for work but have not succeeded. Maybe
you can help me.”

“My foundation funds noble causes. We build schools in third world countries; we
build water systems for communities, we set up medical clinics. We just do not
help individuals. However, I feel very sorry for the many unemployed, under
employed and those working for lower wages, and or lower benefits.”

I gasp. “Seems like the rich use their money to buy the best lobby they can buy
and they in turn put together a Congress that favors the rich at the cost of the
working people.”

Mr. Generous ponders. “You working people outnumber the rich. Why do you vote
against your interest? You could have a Congress of your choosing.”

I react, “Here again their money beats us. They reward the talking heads, who
spin information to confuse us. They repeat false information often enough that
we believe them. They have divided us. The parties are so involved fighting each
other that we do not notice that the rich are sucking up all the cream.”

“You are catching on,” Mr. Generous points out. “The politician will side with
you on the issue that concerns you, but after capturing your vote sides with
private interests for the big bucks they wave in front of them. It is money that
decides the elections, and it is money that determines the legislation. Voters
should unify on ignoring issues. Once again the issues are tools for the
politicians. Ask your candidate how much money they have collected, and from
whom, and then inform him or her in a loud voice for all to hear, ‘Your vote
goes to the one with the least money.’”

I am confused, “If we could put in place a friendly Congress, how would it help
us economically?”

“Then you make your demands. If you voters unite, you would make a large and
strong lobby no other could compete. I mentioned the energy project. Demand the
Government take on a massive infrastructure program. Here are some more ideas:

“Redo the tax code so that the average person pays considerably less. These are
people who have needs and will spend and therefore help circulate money. Make up
the revenue difference by increasing the taxes on the rich. They are so wealthy
it would not change their life style one bit.

“Should the rich pay more? Definitely! Their demand for services is very high.
Example: our massive defense budget prevents a foreign power from conquering us
and confiscating our homes. I have seven homes each worth over a million
dollars.

“Our massive military and economic aid is used to protect “the American
interest” around the world. You are an American, but it is not your interest. It
is the business, the influence and money of the very rich that we are
protecting.

“Another example of how tax money is consumed by the rich: an employee needs a
road to travel to the work place, the rich employer needs many roads for all
employees to get to work and maintain the business. More roads are needed yet so
raw materials can be shipped in, and again still more roads to ship finished
products to customers. Taxes are necessary to build roads.

“In general, most of the tax money is spent either to help the rich or winds up
in their pockets. Why the rich get bent out of shape when a program helps the
poor is not understandable. Who gains from the increased spending and
consumption by the middleclass? The rich, of course; they sell the goods and
services.

“Much research funds are given to large corporations. The research that may be
conducted anyway is now transferred to the bottom line and distributed as
dividends to the very rich. We Americans are innovators and we should take
advantage of that by diverting funds to small garage type operations. The money
will be spent and there is a sound history of grand successes from this sector
growing into big businesses, creating numerous jobs.

“The big banks destroyed our housing market, creating a wide chasm for the
world’s economy to fall into, and they themselves were collapsing. The situation
was salvaged by tax payer money. Housing remains shattered dragging the economy.
We now blame the home owner for buying beyond their means, many of whom made
justifiable commitments before the destruction of the economy. The banks and
their agents doled out mortgage money based on falsified documents so that they
could generate disguised securities. Now, the onus should be put on the banks to
reduce in a big way the foreclosures that are competing and depressing the
housing market. By edict, the foreclosure process should lean heavily in favor
the home owner staying in their homes and thereby reduce the massive oversupply
of houses.

“The next idea is my favorite: the top bracket the super rich earn should be
taxed at 91%! After all the money they make and keep before reaching that slab,
conceptually they will not feel the difference. Then offered a tax write off on
expanding or starting a business within our boundaries, these smart people will
take good advantage of that; pay only $9 per $100 cost, while Mr. Sam will pay
$91 to their benefit. This will create jobs and boost money circulation: trickle
down really working!

C J Primlani

Tax bills go out, due Sept. 1 – Source: The Daily Southerner

TARBORO — Be careful going to your mailbox. Tax bills have gone out.

Town residents will receive two bills: one from their town and one from Edgecombe County.

In Tarboro, 5,474 bills were mailed. They are due by Sept. 1. Pay by Jan. 5 or you will pay a penalty, also. (Source: The Daily Southerner)

 

Everette-Oates owes Uncle Sam back taxes – Source: The Daily Southerner

TARBORO — The deadline for filing income taxes is April 15 but for some it never arrived.

Princeville Mayor Priscilla Everette-Oates owes the federal government more than $200,000 in back taxes – $272,862.41 to be exact – dating back to 2007, according to documents filed last month. (Source: The Daily Southerner)