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Lifted from the Occupy Planning Committee….

1. Eradicate the Bush tax cuts for the rich and institute new taxes on the wealthiest Americans and on corporations.

Strong economies have a system that recirculates income throughout the system. The Bush Tax Cuts interrupt that system, by rewarding the removal of excess (profit) and gambling it on riskier items with the potential of superlative returns. Translated: Putting Billions on Animal Kingdom to win, place or show, doesn’t create jobs.

2. Assess a penalty tax on any corporation that moves American jobs to other countries when that company is already making profits in America.

This is simple. Raise the wealthy’s taxes across the board. Mandate that income earned overseas by American corporations gets taxed by America too. Then, allow a 100% write off on all physical investment here in America. Translated: Corporations will build here, when it becomes cheaper for them to build here.

3. Reinstate the Glass-Steagall Act, placing serious regulations on how business is conducted by Wall Street and the banks.

We tried deregulation. It didn’t work. We reverted right back to where we were in the stock crash of 1929 after which Glass-Steagall was enacted to prevent that from ever happening again. Essentially Glass-Steagall says we need to separate our money that we require ourselves to live on, away from speculative investment… If you want to invest, do it by choosing to put your money at risk in an investment firm knowing full well that you could lose it all. However, safe money, needs to stay safe.

4. Join the rest of the free world and create a single-payer, free and universal health care system that covers all Americans all of the time.

There is a reason why other nations spend less on health care per person, and have much better results. THERE IS A REASON. One can wish for a lot of things; wish that private health care didn’t cost so much, wish that private insurance covered everything, wish that our doctor could keep giving us free samples all the time…. Switching to single payer, if we use Japan as a model, would save every American $4,800 dollars a year. A family of four therefore would see a savings of $19,200 per year…. Imagine what a family could do with an additional $19200 a year plopped into their lap? What’s really sad? The Japanese live much longer too… meaning we are paying more and getting nothing in return.

5. Immediately reduce carbon emissions that are destroying the planet and discover ways to live without the oil that will be depleted and gone by the end of this century.

Reducing carbon emissions is good for whatever reason. The idea that carbon fuel usage will deteriorate is not viable. The global energy requirements are growing exponentially. We need to insist that all new demand for power, be met by renewable resources (excluding ethanol). We will still need existing operations to continue just to keep our lights on.

6. We, the people, must pass two constitutional amendments that will go a long way toward fixing the core problems we now have. These include:

a) A constitutional amendment that fixes our broken electoral system by 1) completely removing campaign contributions from the political process; 2) requiring all elections to be publicly financed; 3) moving election day to the weekend to increase voter turnout; 4) making all Americans registered voters at the moment of their birth; 5) banning computerized voting and requiring that all elections take place on paper ballots.

b) A constitutional amendment declaring that corporations are not people and do not have the constitutional rights of citizens. This amendment should also state that the interests of the general public and society must always come before the interests of corporations.

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Or at least that is what he said his name was.

The post midnight quiet was interrupted by an urgent female voiced request for security. Peering into a tent, was a fairly muscular tall man, hair shaved thin, with three rolls of skin, bulging visibly the length of his neck.

He was arguing “where’s my stuff. The security officer said in a too nice manner. “We think you had better stay somewhere else” “What?” was the indignant reply. “We voted on, and decided you were no longer welcome to stay here…”

“Where’s my stuff?” he demanded, poking his head out, looking around. On the ground, next to another tent, was a large 55 gallon clear trash bag stuffed with an assortment of clothes… Bill, came out, picked the bag, and grabbed a large piece of personalized cardboard and went back into the tent, which by the way, already had someone else sleeping in it.

“We think is it better if you stay elsewhere tonight” security replied. “You’re not welcome here.”

A belligerent head poked out the flap. “Listen, I’ve been working at a bank all day, and I’m tired. I can’t go anywhere else. I just need sleep now… Leave me alone.” then zipping the flap up.

Security walked over to another security with the words, “He’s back.” “What was it the GA decided if he returned?”

“We decided we’d ask him to leave, and if he did not, we’d call the police and have him evicted.”

Across the street in the middle of conference, waited both a County and City police cruisers. and soon two policemen, one wearing navy, the other wearing brown, were at the tent, armed with bright flashlights, along with a crowd of several security personnel.

“Wake Up.” “Wake Up” “Wake Up”.. were heard several times. “You need to leave now.” “I don’t care.” “You need to leave now”

It took about 5 minutes for Bill to realize his time at Occupy Delaware was over, and grabbing his cardboard pallet, and his clear trash bag of clothes, the trudged along the west flank of the plaza.

The police stood until he was, a block later, out of sight. Around the camp discussions over the incident were almost identical.

“I’m sad for him. but it had to be done” was the consensus. When asked why, a reoccurring history was told. Since he joined about 5 nights before, he started showing up around midnight speaking to no one, then usually around 3am he would become really agitated, and could be found at that point roaming the camp, unzipping other’s tents, going through other people’s stuff,and asking everyone for a cigarette. The previous night, he seemed excessively agitated, and when confronted, had used threats of violence to intimidate them. Fortunately he never carried them out; but the group had decided his presence was not productive to the cause. There was considerable debate over whether he was suffering from schizophrenia, or was a user of drugs. The answer came from this observer who said: I’ve never seen schizophrenics immune to excesses of temperature. On his first night, when we had that really cold spell, he was barefoot, wearing only a tea shirt, and seemed completely oblivious to the weather… The dark suited cop, acknowledged he was well know in that area, and had created trouble and was definitely a non desirable.. In fact, said the cop, I’d probably ought to go check up on him. Exiting the group, he U-Turned his cruiser, and headed up 8th Street.

After 5 or 10 minutes of various whispered conversations, a small rain began to fall, and people went into or under a tent…. Soon, the camp appeared empty, devoid of people.

Square surrounded by police… As many as 20 departments, state, county, neighboring city’s. in riot gear surrounding the bulk of the protest.

Helicopters over head… Drums beat incessantly in background. Visual check shows that in violation of California State law, all badges and identification of individual police officers are removed.

Barricades put up at all plaza entrances. Expectation that a mass arrest is about to take place…

Announcements initiated here at 5:50. Will be starting crowd control activities shortly.

Chant: “We are Occupy; We are never gonna die.
Every time you kick us out; we are gonna multiply..”

Chant stops… Groans as they move in … on OGP….

There’s a dude in the tree… Just heard processing table is at 14 and Clay…

Chant: The people united; will never be defeated.. Asking officers why they hide their name… No answer from behind the mask…

Arresting now of the Interfaith Community, which is leaving peacefully, zip-stripped, to cheers and clapping, and applause by protesters… These are pastors, priests and nuns who came to support the 99%. (For once, that’s one court fee, I wouldn’t mind reimbursing the Church for)…..

Zip strips are white this time….

Damn helicopters.

Channel 2 says 20 arrests so far.

Police line across Broadway (at 14th), is breaking up.. They are leaving, applause.. from crowd now.. They are now past 13th…

Sun is coming up. Standoff now about an hour, without any formal dismissal request.

Wedding taking place. In front of riot police… “Now pronounce you husband and wife.”

Police are tearing down camp.

Smiling cops tear down tent city. Chants: “don’t worry, we’ll be back.” Looks like they are searching, not taking them down… “Mr. Policemen; smiling at the overtime; Mr Policemen, smiling at the overtime..”

Chanting: Don’t take our tents; they’re protecting your pension.. Don’t take our tents; they’re protecting your pension.. Don’t take our tents; they’re protecting your pension….

Overheard Occupier on phone… we’re gonna need more tents.

Police lined across Broadway at 14th, starting to break up. .. Cheers among crowd. Confirmed they are marching out…

Now past 13th, filing out two by two….. marching out.

Twitter feed just announce Mayor’s Legal Aide just quit over the use of force in removing protesters. Dan Siegal just confirmed.

All that is left is the media, police, and empty flattened tents…..

Someone said… The police are one budget cut away from Occupy….

You are following orders; for money, nothing else. Just money. Not people…

Someone else shouts…
They came for the Unions; We did nothing because we weren’t union.

“They came for the Jews; we did nothing because we weren’t Jews.

They came for the blacks; we did nothing because we weren’t black.

They came for the Asians; we did nothing because I we weren’t Asian.

They came for me, I looked around, they did nothing…
there was no one was left but me……. ”

Cops did a good job someone else says… Don’t agree with the mission another chimes in… I don’t either, but they handled themselves well in performance of a bad mission. They were better prepared and both sides refrained from antagonizing violence….

Diametrically different.

Corporation tax in the Republic of Ireland is a levy on a company’s profits. The tax is charged on both a company’s income and chargeable gains. The corporation tax in Ireland is quite low (12.5%), and is often cited by Republicans as an example of tax competition, as it is used as an incentive for foreign companies to invest in that state.

On the opposite end is Norway. The Norwegian Corporate Rate is 28%. Their Income Tax rate is 48%. They are one of the highest taxed nations in the world. They also have been ranked as the nation with the highest standard of living for several years in a row.

Ireland got a lot of press by the Investment Papers because of it’s low corporate tax rate. It was an economic miracle.

Then came the crises.

Here are the unemployment numbers out of Ireland June 2004: 4.4%; July 2011: 14.1%….

Here are the unemployment numbers out of Norway..June 2004%:4.4%; July 2011: 3.3%

During boom times both nations had equally low unemployment. One nation taxed heavily; the other taxed very lightly. One nation was run democratically; the other was run as Republicans wish they could run the USA……

The Democratic country, currently has an unemployment level of 3.3% … The USA has an unemployment level of 9.1%… The Republican run country, currently has an unemployment level of 14.1%….

Why?

The reason is simple as the Aesop’s fable: the grasshopper and the ants. While Republicans are frivolously playing around during times of plenty, Democrats with higher taxes are investing in their future for rainy days…..

Taxes are a means of stabilizing the economy. Norway did just that. The nation with the highest level of taxes, has the lowest unemployment and the highest standard of living on this planet.

Throw that in Mitch McConnell’s face when he says high taxes cost jobs. Truth is: they don’t.

Jobs go where taxes are highest. In both good times and bad, if taxes are high, a nation’s people stay employed…….

You will soon be hearing the opposition flinging this number… blaming Obama for $3 million a minute being added to our deficit….

How does one respond to that? With the truth, of course…

Wow, That’s really good, especially when compared to the $20,203,057 a minute George W. Bush added to our deficit… Sure looks like we need more Democrats and fewer Republicans ….

(Remember the deficit was projected to be completely down to zero in the year 2008, had the Bush Tax Cuts never have been enacted……. ) Hence making him now responsible for the entire debt up to when Obama’s term began.

It should be good news… more people are working than expected.

How great is that?

“Well, we were expecting this many people to have gained jobs, but… no, instead we got much more than we expected!….”

One would think the stock market would bounce on the good news!

Actually, 154,000 jobs were created in the private sector. This offsets the 37,000 Federal government jobs cut July by the Republican’s actions……

154,000 jobs? Under a Democrat president? What’s going on here?

Obviously the stimulus is working. Obama was right to deficit spend to keep up demand for services….

And I bet you’re enjoying your commute on all those newly paved roads too, aren’t you?

Now contrast this with a Republican regime… Potholes galore because they cut taxes. Pot holes galore because the wealthiest top 1% was allowed to keep $1.2 trillion that normally flowed into much needed services…

Can’t you see what’s happening? Obama showed us the way…. WE NEED SPENDING ON INFRASTUCTURE. WE NEED SPENDING TO MAKE AMERICA A MORE LIVABLE COMMUNITY……

Because of Republican legislation, to get to that level of spending, we had to borrow… but doesn’t it make a lot more sense to tax the top 1% that 1.2 trillion, and have this quality of life, without the deficit?

The World Cup for Women is not the only thing escaping the grasp of America… Private investment money is fleeing our nation as if the party is over and the last one left in the room, will be presented with the check. Each time a Republican insists that default on US obligations is a valid price to pay to enforce a “no tax pledge” on the wealthiest one percent, billions more flow out of our country.

Those billions, not millions, are our future jobs, going elsewhere….

It’s happening each time a Republican opens his mouth and insists that taxes on the wealthy, will NOT be part of the deficit reduction act.

In April, $67 billion flowed into our country from overseas. After all, we were recovering from the Bush Depression. Then, as the debt ceiling crises made clear that Republicans were insane in their insistence that only cuts would balance our deficit, the net outflow flipped to 67.5 Billion…

In one month, Republicans caused a $134 billion flip in the amount of money available in the US for future investment.

That investment is now being done overseas. Those people are getting the jobs that should have, would have been here if Republicans had acted responsibly. Ironically that is exactly the same amount $134 billion, that the Congressional Budget Office, estimated the American Recovery and Reinvestment Act would increase the deficit in 2011.

The stimulus we pumped into the economy for the entire year of 2011, was wiped out in one month, by Republicans whose scare tactics chased that much money out of our country.

Small people all know this. Democrats reward investing in the USA… Republicans reward getting your money out, and keeping your money the hell out of the USA.

It is crystal clear; there is absolutely, unequivocally no other way to see it.

If you had lived back in 1776, and decided to take up your gun, and fight back those anarchistic rabble rousers who wanted to overthrow your king and his stable system of government, you may have thought you were doing the right thing at the time. Maintaining God’s order in the universe. As each one of your musket balls found its home in an American Continental soldier’s body, you may have rejoiced that you were doing your part to bring order and decorum back into society. But…… History proved you wrong. You may have felt you were right; but you weren’t.

You weren’t.

Today, July 2011, Republicans are doing far more damage to our nation’s future, than one or two musket balls could ever cause… the loss of $134 billion in future investment. Can we afford to sit ideally by and let this self inflicted bleeding continue?

Anyone supporting the Republican party, is simply a Royalist traitor transported to today’s world.

That is fact. That is truth. That is reality. That is getting pounded in the face.

They could be nice people; they could believe in what they do; they may mean well; I certainly don’t mean to imply that they ARE bad people… But, whether they are good, bad, or indifferent, the results of their actions are hurtful. For example, I’m sure termites are fascinating creatures, amazing to study, and in their own way, admirable examples of God’s creation. But, …. we don’t allow them to take over our houses….

America: Republican just cost you $134 billion dollars… They’re not saving you money: they are bleeding you dry, dry of every penny you’ve ever earned…

But, whatever…. It’s your country and I’m just one person… You guys vote and support whoever you want; it’s no sweat off my brow. Whatever happens, I’ll survive either way.

But America needs to look at the bigger picture occasionally and realize that the only thing we got going for us is our unique, talented, and gifted people. Those same people who give hope to the world over, that their nations can, one day, be like us.

You burn that up as fuel, and all this nation’s got leftover, is ashes…….

The New Republic recently questioned (and answered) why our president was not getting credit for preventing atrocities in Libya, which surely would have come, had our intervention not been enacted.

The answer is: because he prevented the atrocities. We can’t see what he prevented so we downplay his action. The opposite occurred in Bosnia. There the Serbs killed over 200,000 people before we intervened. We saw displaced persons, mass graves, so upon rectifying that, we felt like something important just got accomplished.

In Libya, we acted quickly. There were no 200,000 bodies for cameras to take pictures. So, the criticism that would have been smoldering as to why we were sitting back, letting people die when we could prevent it, shifts instead to questions of whether or not we have a clear mission, how long we plan to keep it up, and whether the girls of the cabinet are more male than the men are……

Bottom line, there are people walking around in Libya now, who but for us, would be dead …..Underneath all the criticism of mission fogginess, are some very impressive facts! Indeed, though this intervention must have felt painfully slow to the people of Benghazi as Qaddafi’s army bore down upon them, it was, by any objective standard, the most rapid multinational military response to an impending human rights crisis in history, with broader international support than any of the humanitarian interventions of the 1990s. What we witnessed was a masterpiece of international cooperation, unseen in our lifetimes, that prevented atrocities that were sure to come.

But it is not only in Libya that this sort of thing has happened. Throughout the Obama presidency, we have had miracles take place that get pushed aside in our daily news feed simply because we don’t really get to see what they prevented.

Like the screen that saves the basketball game because it prevented a sure shot before the buzzer, one that would have changed the outcome of a one point game,…. preventing an action is something that never gets shown in the highlights. Instead the highlight reels show something like a shot in the first half, bouncing on the rim three times before going in, ….causing most to think that this, was the reason for the 1 point victory….

The most extreme example of this effect, of course, was the $787 billion stimulus package that Obama signed during his first month in office, when the economy was shedding 700,000 jobs a month. 700,000 jobs a month…. The immediate goal was to avoid a depression, and in that sense it was a tremendous success, stopping the hemorrhaging and stabilizing the scariest economic situation since the Great Depression. (The Congressional Budget Office and other independent analysts estimate that without it, the unemployment rate would be 2% higher today.)

But 8.8% unemployment is still awful. States and cities are still laying off cops and teachers – just not as many as they would have without the stimulus…Last November, voters seemed more aware of actual pain than of the theoretical pain they were saved from feeling.

His health care overhaul included serious efforts to rein in soaring costs, but they haven’t kicked in yet – and when they do, they’ll just make medical care somewhat less exorbitant.

His financial reforms should reduce the chances of another Wall Street meltdown, but it’s classic disaster prevention: if they fail, it’s a scandal, and if they work, we won’t notice.

Chief of staff, Rahm Emanuel, calls it the “gift bag” that President Bush left for him...the worst economy in 80 years, a nightmare on Wall Street, a deficit spiraling out of control, one unnecessary war in Iraq and one intractable war in Afghanistan, a dysfunctional health care system, and an energy policy that was broiling the planet and exposing consumers to violent swings in gas prices……

Obama basically ended the war in Iraq, but attention just shifted to the potential quagmire in Afghanistan. He’s been a paragon of fiscal responsibility compared with Bush, but he’s still blamed for the megadeficits primarily created by Bush’s tax cuts and the Great Recession. Obama has jacked up fuel-efficiency standards and his stimulus included the most aggressive clean-energy push in history, but nobody notices when gas costs more than $3.57 a gallon.

Even as the country imploded and collapsed on Bush’s watch, his Republican supporters always pointed out that Cheney/Bush had “kept us safe” from terrorist attacks. Well, Obama also has kept us safe – and he didn’t have a Sept. 11 on his watch. But nobody ever mentions that, not even his supporters. (Apparently there needs to be a spectacular terrorist attack on U.S. soil during your presidency before you can get credit for preventing another one.)

Looking at Obama’s list of accomplishments, they are rather impressive…. What other president in two years has done as much to rectify a collapsing economy, constrain an immoral Wall Street, reworked a Health network fueled by greed, wound down a war in Iraq, initiated radical new clean green energy standards, and in less than two years, create more jobs than Bush did his entire eight?…. One would have to go back to Franklin D. Roosevelt to find someone who has done so much in as little time.

But you can’t excite a base with slogans like: “I prevented a disaster”; “It would have been even worse without me”; “That’s us: avoiding even bigger messes since 2009,” ; “We inherited an economy in free fall”; “Aftermaths of financial meltdowns are always long and brutal”; “Depressions are exponentially worse than the nastiest recessions”…

It’s ironical, because preventing a major problem is far better then spending tons of money to fix it after the problem has transpired. But because this president is soo good at preventing absolute calamities, . It’s hard for him to get credit for avoiding that disaster when it’s impossible to prove the disaster would have happened without you. Social scientists call this the counterfactual problem…

So yes, we have a counterfactual president. And when you have a person like this, whether it’s a teacher, or a supervisor, military officer, or tireless public servant, when you have someone that is proactive and sharp enough that great problems on the horizon, never seem to catch up to us, you only realize just how good they were, after it is too late and they’re gone; meanwhile replacement can’t seem to do anything right…………

My bills are too high to expect me to help out the economy.….– kavips

One Trillion shy of all domestic Household debt (14T) , is the debt imposed upon us by “the borrowing of our governments”… local, state, and Federal (13T). The majority (10.4T) is our Federal debt. It should come as no surprise that tackling this task should be our first priority to insure that any short term economic gains we create, are not wiped out months or years later.

We were on a successful track to achieve this goal just 8 years ago… Budget surpluses were projected far into the future, and before our eyes, the whittling down of our national debt actually happened . Today, Generation X’rs and Y’rs simply accept that as fact, that balancing the budget is possible. Very few recognize how much of a miraculous achievement that thing is: a budget surplus… For until Clinton-Gore arrived, no one ever expected our national debt to decrease. But decrease it did and not only did it actually drop within our lifetimes, but a credible path was tracked showing it decreasing year by year to negligible amounts. And then … with one election… things drastically changed. We stopped our Treasury from taking in enough money to cover its known expenses and instead, borrowed the amount to fund what was necessary.

In eight years we went from a projected $5 trillion dollar surplus to an actual $10.4 trillion dollar deficit; a flip flop of $15 trillion dollars! Political afficiendos will be quick to blame Republican philosophy and their elected president: George W. Bush. Unfortunately they are way off the mark. (I say unfortunately for if one party and one president were truly the problem.. the fix would be much easier to amend…)

The problem is a systemic one. The entire financing system of the Federal government is now broken; almost to a point where returning to the glory days of before 2000, is barely considered a laughable alternative. The problem can be best ascribed to a head on collision between a poorly timed demographic shift, and unreal expectations. Put simply in one word, entitlements; put in four words, Social Security, Medicaid, Medicare.

Here’s how paying off our nation’s trillion dollar debt benefits us.

2007 Federal Budget Expenditures
Courtesy of Federal Budget 2009 (Right click for full image)

Looking at the image and being asked what can be cut under current law, one sees that only two areas of the above pie chart cover discretionary spending. The other four cover mandatory, non-discretionary items. That means that they get paid, … irregardless. We have no choice but to pay them fully. We have to pay interest. We have to pay Social Security. We have to pay Medicare and Medicaid, as well as all other mandatory payments such as Treasury obligations.

The only two areas where we can slice, dice, and cut back on expenses, are between that of national defense, and everything else we think of as being “our government”; both together amount to a paltry 38% our our entire expenditures. 62% of our Budget is locked down, and commitments have already been determined where it will be spent…. long before the fiscal year even begins.

So one sees that if we were to pay down the National debt, we free up the interest payments ( 9% of our current budget) which can then be applied to other things we might need ten years from now.

Obviously our entitlement programs will have to be changed. One can see that ridding ourselves of Medicare and Medicaid as a governmental expense would go a long way to reducing our deficit, and ultimately be a big push bringing our interest payment closer to zero…. But doing so… brings up the ugly social issue of what to do with those Americans lacking health care….

Contrary to popular belief getting rid of these programs is not completely impossible. Except for the time-frame covering the past 40 years, mankind has survived OK without Medicare and Medicaid. Rome lasted a thousand years without it. We all know that if we suddenly became faced with an all-out-war against some type of alien invader (Independence Day),what money was currently designated as a mandatory expense to cover health costs, would instantly be moved to supplement our planet’s defense with nary a whimper. Our sick would make due the best they could… perhaps even do better than they do now… (at least for those 2 million Americans a year who pick up a nosocomial infection!)

The writing is on the wall. One entitlement will have to fall in order to save this country. As America’s retirees get older, the medicare problem is one costly extravagance that must be looked at closely to determine whether it helps or hurts our nations viability.

When compounded with Social Security’s insolvency, the Medicare situation takes on an additional albatross around its neck. For as one thinks about it, we are using federal funds to extend the lives of those who are receiving Social Security. Using all and any expense available to keep someone resuscitated long enough to earn one more Social Security check, does not make practical or financial sense. We must rethink our commitment on how we will provide long term health care, based on today’s prices… not those prices existing back when the Great Society was envisioned….. the 1960s.

Ultimately for governmental medical assistance to survive, we will have to suck the profits out of health care. There will be a few who protest. But if Medicare were suddenly to cease to exist, and health care became a cash only commodity, somehow we would survive. Who knows? When faced with no free blood pressure medicine, we might try other methods to keep alive… such as eating right and exercise.

The amount of people dying will never change. Everyone born will die at some point. All we are doing, is removing the unlimited amount of taxpayer money used to support the unreasonable assertion,that we have the right to use lots of other people’s money to live as long as we selfishly can.

Think about this. Very few of us would purposefully bankrupt our own flesh and blood children by forcing them to pay out of pocket for our over-the-hill medical needs… With Medicare being fully funded by taxpayers….. it is doing just that…

Of course there is another method we can use to fund our budget and keep Medicaid and Medicare: bring in double the revenue…

But, because of the demographics of our aging population and the sparsity of those working young who are paying for the old people’s expenses, keeping this cancerous expense on-board, and paying for it by saddling those still working with double taxes, is not a viable option…. One could argue that it is morally wrong. It would be saying to our children that “yes, we had the American Dream freely given to us by our parents; now you will have to work much harder, and earn even less, just to continue that dream for us.”

The writing is on the wall… Sometime, somewhere in our future, it will have to go… Not disappear, mind you, but in its form now, funded as it is currently… it cannot last… The pie chart tells all. Tweaking 3 or 4 percent in any one category makes no dent upon our unfunded problem.. We must begin preparing ourselves for this uncompromising reality; one entitlement will have to go. Looking above we see the absence of Medicare and Medicaid in the Federal Budget, is more plausible than the loss of any other category.

If we were to wean ourselves away from that entitlement, and apply that amount in bulk towards our national debt as a payment of one half of one trillion per year, within 20 years…. our debt will be gone.

For when it comes down to discretionary spending… we are as low… as we can go… The cut has to come from Medicare/ Medicaid. What replaces it is a whole different discussion…..

So how high do taxes need to rise, (using today’s figures without cutting out one entitlement), if we truly wish to decrease our national debt? Since the economy grew significantly during the Clinton years when all taxes were higher, those rates we can be assured do not stifle economic growth. As a first step, that would be the smartest move; let the Bush tax cuts expire. …To those who argue that increased taxes constrain our economy, try and get a solid answer from them as to why the economy grew like magic when they were previously in place.

Since it has already once been done, it should not be hard to do it again. Right? Need more detail?

Let’s look at the twentieth century as a whole.. This chart simply shows the highest marginal tax rate per year. It ranges from 7% in 1913 up to 94% in 1944-45. Graphically displayed it looks like this….

Graph of Top Marginal Tax Rates 20th Century
Graph Courtesy of Truth and Politics.org

Although the graph stops at 2003, this evidence shows the ending level extends at 35% through to 2008.

If one couples one’s knowledge of history with numbers portrayed upon the graph, a correlating factor of 40% seems to be the ideal marginal tax rate.. When rates dip below that amount….they may last for a few years at that level, then they soar sky high for many years thereafter… It appears that languishing below 40% puts too much stress on the private sector. Something goes wrong, it buckles, and great governmental expense is taken to bring it back under control.

But if one uses the same evidence portrayed on the graph, and this time couples it with one’s knowledge of economics, they notice that lower rates produced boom economies, and the higher rates stifled economic growth.

Recent knowledge ( ie. today’s events) coming off of the experimenting and tinkering between 40 and 35 percent, leads one to believe that 35% is too low to sustain the economic viability of this country. As a nation we have socialized ourselves a bit too far to survive upon those lower rates…. 40% seems to be the optimum low that we can go….

Unfortunately because we played around with cutting underneath that magic number, we will be paying steep rates throughout the near future, very much like those which occurred between 1933 through 1963. Those who lived their full lives listening to Republican partisans constantly complaining about today’s high taxes… well, thanks to them (Republican partisans), America’s wealthy is about to find out just what “high taxes” really are…. As one can see from the chart, and can estimate from the amounts of the bailouts being currently given out…. the highest marginal tax rates for the wealthy, will climb higher than most of our wealthy has seen in their lifetime…

And because of that increase… our economy will slow.

The beauty within this chart is that it provides to all a sense of where the line needs to be drawn.. When we talk of raising taxes… we are speaking of returning to 40%, a level only 5% different from where we are now… What that means is … instead of someone making a full billion dollars now, after future taxes are deducted that person would be still sitting on $950,000,000 dollars… Who wants $950,000,000 dollars? I do. I certainly would not fold my business just because I had to give an additional 50 million over to my government, a scare tactic some may make us try to believe. Especially since I already know that our economy functions more consistently with that additional 5% amount financing the support structure on which all businesses depend on.

So how much revenue does that paltry 5% increase raise? Try $390 billion dollars per year, based on current data provided for this year’s third quarter.

True, that five percent does suck a little spending out of the economy, but if applied to the deficit, it reduces the amount borrowed which in turn lowers government’s cost. Eventually when interest payments reach zero, we can again fund our government on a pay as you go plan, thereby balancing taxes with costs in a fine equilibrium….

So if we hold costs the same. How long and how high do we raise taxes to bring our deficit to nothing in 11 years… 2020.

Debt —–Yr Expenses—Yr income—-Yearly incremental amount
10.4T——— 2.7T ————-2.6T ———————– 204 B

(The extra 100 Billion comes from above: it’s the yearly difference between current expenses and income multiplied by 10 for each year.)

So how much does that cost us? 204 Billion is what percentage of 2.6 Trillion? 7.8%

We need a yearly increase of just 7.8 percent to pull us out of debt in ten years, assuming we continue to spend as much as we do now, and that we continue to receive as much national income as we do now……..

That would make the highest marginal rate (35% + 7.8%) equal to 42.8%: just 2.8% higher than it was during the booming Clinton Presidency. Really…. is that not a lot of hardship to undertake?… Especially when one compares it what our predecessors, “the Greatest Generation” had to pay in order to give us the prosperous America which we inherited?……

And if that increase amount is spread across the entire spectrum of our sources of income.

Preliminary Estimated Receipts for US Federal Budget 2009
Courtesy Federal Budget 2009 (Right Click for Full Image)

The actual cost to the top ranked taxpayers, could be less…. One would be well advised to realize that the stimulus packages perhaps costing up to 3 Trillion by the time politicians finish robbing our future, will extend these estimates considerably.

But seeing the numbers makes one realize that we are not at the end of financial stability…. The United States has vast resources at its disposal to throw towards the global economic meltdown, slowing and then stopping its progress. We need just a moderate revenue increase to make it happen as well as begin making plans for shedding responsibility for one of our hitherto guaranteed…. Federal entitlements.

The question is what is in it for us… Bottom line… a job.

Although distant and remote, the National Debt plays a huge role in our economy, just as do charges and credit card payments play a similar role in everyone’s household finance. Think of all the spending you personally would be free to do, if you owed no one any money and could pocket what you earned…. That same principal holds for our government as well.

Those of us who still have jobs today are worried. Those of us without… are worried even more. Our jobs and long term security, depend upon our Federal Government getting costs in line and living within their means as well…. As with any investment, paying out an additional 7.8 percent is affordable if one gets a payback of a higher return…

Those living in the 90’s saw it with their own eyes… Dropping the debt creates long term stability and that…. creates jobs.

How Higher Tax Rates Benefit Household Net Worth

The Antimatter of Democracy

“What sluggards! What cowards have we brought up in our court, who care nothing for allegiance to the people. Who will rid me of this meddlesome priest!”