2012 BLOGS

(Blogs from 2007 - 2011 can be accessed under Stuff 2 Read)

Most recent blog is at the top.

OUR ECONOMIC MESS (print as PDF document-3 pages)
January 30, 2012

Warren Buffet says he thinks rich folk like himself should pay more taxes -- and President Obama would be glad to oblige with a millionaire surtax.

Before I continue, I need to correct what the President said in his State of the Union message. He said, “It isn’t right for Warren Buffet’s secretary to pay more in taxes than he does!” That would certainly be a crime! What Buffet said was, “It is just plain wrong for my secretary to pay taxes at twice the rate I pay.” There is a world of difference between these two statements.

Obama and his friends are purposely throwing statistics around that are simply wrong. To claim that normal American taxpayers pay 35% while billionaires pay only 15% is designed to get people agitated and has no relationship to truth. Warren Buffet may possibly be able to get by paying only 15% because of all the tax loopholes for hedge fund operators, CEOs and other billionaires, but not many manage that. Buffet doesn't need to fear that his taxes will go up anytime soon. He is what they call an "insider" and a friend of Obama.

The President is just throwing up a smoke screen to cover his gigantic Ponzi scheme to bankrupt America. A few of the wealthy are profiting by it and everyone else is getting ripped off. If you don't believe me, keep reading and then do your own homework. The information is out there!

Here is the truth based on facts. The maximum tax deduction is 35% and nobody pays that amount. That is before deductions and everyone has deductions. The average tax paid by those in the top 1% that Wall Street protesters keep talking about is 29% and the average rate of those in the 99% is 8%. In fact, the top 1% pays 37% of all taxes received while the 99% pays the other 63%.

Of course President Obama wouldn't be content with a surtax on those earning over a million because few earn that much. In 2009, 1,470 of those who earned over a million paid no taxes whatsoever! This is of course unfair, but it is absolutely legal. Unpaid taxes are not legal, but it is another hard fact and there is little the IRS can or will do about it. Benjamin Harris, a research economist at the Brookings Institution estimates a gross tax gap of $410 - $500 billion in 2010.

Applying the surtax to the upper 1% would include anyone earning more than $343,927. As already stated, this group already pays 29% or 37% of all taxes collected. If the government took 60% of what these people earn, it wouldn't balance the budget!

But Obama talks about increasing taxes on millionaires, not just those earning a million or even those in the upper 1%. Who is a millionaire? Millions of Americans are worth more than a million dollars. A business owner can easily have that much tied up in real estate or equipment and a shop owner may have stuff on his shelves worth a million. Many Americans have a million in their retirement funds and if they own an average home, it is worth a quarter to half a million dollars. When the government is tossing trillions around like paper airplanes, a million doesn't go far. It won't even cover many lawsuits these days.

The problem in Washington is not too little money, but too many expenditures. If government spending is not decreased drastically, there is no way we can ever recover. I attest that it can be done and no essentials would suffer. Just cutting senseless spending and waste would go a long way.

Most Americans think that income taxes collected are used to run the government but this is not true. The IRS collected 2.345 trillion in taxes in the 2010 fiscal year and paid out 467 billion in rebates, leaving 1.878 trillion. The IRS, like our federal government, is largely incompetent. It costs 53 cents to collect $100 in taxes.

So what happened to that $1.878 trillion the IRS collected? All of that money went to Private Banks who loan the government money for its operations. The President's budget request for 2010 totaled $3.55 trillion, making a budget deficit of $1.67 trillion. The total debt is now over $15 trillion and interest on that debt takes a sizable chunk of collected taxes! 1% of $15 trillion dollars is $150 billion and not $15 billion. The IRS Data Book for 2010 gives $165 billion in interest payments, over twice what the Department of Transportation received ($72.5 billion). But I am pretty certain that nobody loans the US money at such low interest rates. There have to be special conditions or benefits that make the loan interesting.

Nearly half of all households pay no federal income tax or they receive more from the IRS than they pay. Most of these are households that have low incomes and senior citizens on Social Security. Social Security is non-taxable income. Most who earn under $35,000 can find enough deductions to get out of paying taxes. These make up at least three fourths of those not paying into the system. Unemployed and incarcerated persons make up two more segments of non-payers (children and students are included in households). Undocumented persons and underworld operators are other large groups.

The above only pertains to federal income tax. There are also payroll taxes, State taxes, sales taxes and many other taxes which most of us pay.

If all taxes were incorporated in sales taxes with no possibility of dodging them, this would seem like fair taxation. If a person spends money, he gets taxed and if he invests or saves it, he is only taxed for interest earned. That sounds great, but what can keep that person from spending or investing his money overseas?

Another problem, and most likely the real problem here, are loopholes in the tax laws that only benefit the rich. What good does it do to raise taxes if they are not going to be paid? Our tax system is so complicated (corrupt), that only the best lawyers understand it. But the wealthy can afford the best, and their lawyers know all the loopholes.

Another factor that plays a big role in our economic mess is the matter of government hand-outs. Some are called entitlements and others are called subsidies. Super entitlements are called stimulus and super subsidies are called bail-outs. Basically, the poor get entitlements and the rich get subsidies, but the result is the same. It spreads the wealth of hard-working taxpayers -- either downward or upward.

Those who have money can figure ways to obtain subsidies which help counter taxation. Not a few buy farms for raising race horses. Unless or until a horse wins races, it is a losing proposition, so the "farmer" gets farm subsidies. If a horse wins, the owner doesn't need to pay those subsidies back. Some of these "farmers" also get paid to not plant certain crops or to plant trees on their property! There are few loopholes for most taxpayers, but many are available to the wealthy and non-payers.

The only real solution to our economic woes would be to get back to where we started as a nation. Not politically or economically, but spiritually. If a majority of the people live by biblical principles, they elect the same kind of people. They seek the good of all and work collectively to combat unethical practices. They care for the poor and make life difficult for those who try to get rich at the cost of others.

Martin Luther King had a dream. I have a vision. If I was as well-known as King, I would likely be assassinated.

STATE OF THE UNION SPEECH
January 24, 2012

President Obama finished his State of the Union Speech a few minutes ago and my wife is listening to the Republican response. After that, Herman Cain will give an internet response from the Tea Party movement. I decided to write my own response.

I listened carefully to the speech, taking two pages of notes, but I had difficulty recognizing my country as the President painted it.

I worked in an art gallery for several years, making brand-new, hand-carved, gold-leafed picture frames for centuries-old masterpieces. I prided myself in making those new frames look just as old as the paintings themselves. I battered the frames with chains, created what appeared to be worm holes and smeared dirt into cracks and crevices. Even art experts had difficulty distinguishing my frames from old originals.

Making an old worm-eaten and beat-up frame look like new would present a greater challenge. Not many Americans were fooled by the picture that President Obama painted of America. He used too much rose-colored paint.

Perhaps I am not seeing the "real" picture, but America didn't seem to have gotten that much better since Obama became President. In fact, the nation's condition has worsened considerably! The picture Obama painted did not depict the State of the Union I live in!

I was reminded of an acquaintance who had more than enough body mass stored up for seven lean years and recognized the need to lose weight. About once a week she boasted to friends of all the weight she was losing, yet by all appearances, she was still gaining. This went on for about a year until I finally figured out what her secret was. She weighed herself twice a day, once right after supper, and again before breakfast. By subtracting the difference each day and adding the daily sums together, she was able to document her weekly success.

Since the bailouts of the American auto industry and the Cash for Clunkers program, Detroit is selling more cars. The big government push for electric cars has also helped. A lot of government organizations are being required to purchase them, which makes sense. The government owns 26.5% of GM stock. The Toyota recall problems, Japanese earthquake and tsunami knocked Toyota out of first place, allowing General Motors to move up.

The President also painted a couple of bright spots on the economic landscape. The Master Lock Company of Milwaukee has brought back approximately 100 union jobs (emphasis on "union") to its Milwaukee factory and is running at full capacity. In this economy, people are trying to protect what they have left.

Mr. Obama also told of a former yacht manufacturer who switched to building wind turbines and was able to hire a jobless man.

One part of the State of the Union picture was painted in rather drab, dark colors. True to form, Obama mentioned the previous administration and his predecessor several times. He said that millions of jobs were lost in the six months before he took office, but he didn't say how many were lost since he took office. The President complained that, like billionaire Warren Buffet, neither he nor the Representatives seated before him were paying enough taxes. I would approve of giving the Obamas 100% tax freedom in return for cutting out half their vacations and White House staff, now paid for by taxpayers.

In the education corner of his painting, Mr. Obama said that he wants all States to pass legislation requiring every young person to get a High School diploma. Students should not be permitted to drop out before age 18. I am assuming that teachers would not be permitted to flunk them either. Perhaps unmotivated students could major in art and learn to paint their own futures like Obama paints the present. Or they could design their own diplomas.

Obama got carried away painting the sky, using mostly pastel colors to depict various forms of clean energy. Those who read my blog know that I am a big proponent of renewable energy. I like to sail and work on small sailboats, which are the cleanest modes of transportation, using only water, wind and solar energy. He said that some clean energy firms may fail (like Solyndra, which received half a billion from the government), but he "will not walk away from" supporting clean energy firms.

The President repeated the demand he made last year, that millions of union jobs be created to build or rebuild roads and bridges. He promised to sign bills which would allow homeowners to get new mortgages at reduced rates. He said he has directed his administration to eliminate unnecessary red tape. The law requiring farmers to prevent contamination from spilled milk has already been dumped, but he pledged to increase government intervention in oil spills.

Instead of olive green camouflage colors, the President painted the military in bright red, white and blue. Pointing to the American flag, he said that there are 50 stars and 13 stripes all stitched together to make one flag. He got the numbers right this time. He wished he could paint members of Congress and the Senate in the same colors, but said they need to stop being consumed by personal ambitions and, like the military, learn to play by the same rules. I am not sure what rules he was referring to, but it could not have been the "Don't ask, don't tell" rule which was overturned last year. There are different rules for Privates, Lieutenants, Majors, Generals and the Commander in Chief, so he couldn't have meant these. Perhaps he will explain what he meant in next year's State of the Union presentation.

CAPTAIN LEAVES SINKING SHIP
January 20, 2012

A lot of people are angry and disgusted with Captain Francesco Schettino for leaving his sinking cruise ship and letting thousands of passengers fend for themselves.

What makes his action worse is the fact that it was his reckless irresponsibility that sunk the Concordia.

Schettino is in jail.

Politicians have it better.

FROM WOLVES to GUIDE DOGS
January 20, 2012

We are often asked about raising dogs for The Seeing Eye. We are now raising our third, but some people have raised over fifty! I have done a lot of thinking and studying in the process, but don't contend to be an expert. Still, I wrote an article and posted it for anyone interested. Click on this link: From Wolves to Guide Dogs

PEER and FEAR PRESSURE
January 13, 2012

Until the latter part of the twentieth century, Europeans had no peer-pressure. Youth didn't make decisions about what clothes they wore or choose their own careers. In many instances, they even married the person their parents selected for them. Almost overnight, this changed, but rather than create a new German word, the English term "peer pressure" was adopted.

The German word, menschenfurcht, has basically the same meaning as peer-pressure, but it is used in relation to adults. Menschenfurcht demands that one be out of bed by 6:00 A.M., keep windows and yards spotlessly clean and have colorful flowers in the window boxes. That is great for tourism, but it can be a merciless dictator with demanding expectations. The loss of a drivers license or a financial setback in business is more than some people can bear and they commit suicide.

Oddly enough, just as there is no German word for peer-pressure, neither is there an English equivalent for menschenfurcht. Composed of two very common words meaning "people" and "fear," menschenfurcht means fear of what other people think or expect of us. In English, we use an entire phrase like, "the felt need to keep up with the Joneses" to describe this. I have no authority to create a new English word, so I will just call it "fear-pressure."

Fear-Pressure
In America, fear-pressure is often called "political correctness." Someone who works for the government was once reprimanded for saying something that was not politically correct. His response was even less politically correct. He said, "If it's politically correct, it's probably a lie."

All of us are to some degree affected by what others think or expect of us, and this is not necessarily a bad thing. If we are motivated by an attitude of servitude, love, compassion and consideration of others, this is commendable. Adults are concerned about their personal appearance, business success and social recognition. I wear a suit and tie to church, not because it feels good or because it's one of the ten commandments, but because this is what many consider to be proper attire. I worked a lot with youth in Austria and usually wore jeans, which are much more comfortable and practical. I doubt if I offend anyone by wearing a suit and I don't criticize those who prefer to wear more comfortable attire to church. A friend once told me that he sees no reason to wear a noose around his neck just because others do it!

Fear-pressure and peer-pressure are basically the same driving force in human behavior, and extreme forms generally show a lack of maturity. People don't wear rings in their noses, cheeks, eyebrows, belly buttons or tongues because it feels good. Piercing and tattooing are presently "in," so people willingly go through this ordeal in order to be accepted. It used to be just the kids (peer-pressure), but today you see 40 and 50-year-olds trying to look cool. It's sort of like the baby boomers who grow beards and pigtails, wear studded leather jackets and ride Harley Davidson motorcycles.

The extent of discomfort some people endure and the risks they take in order to achieve approval or avoid the reproach of their peers is simply amazing. Fear-pressure is the biggest single cause of heart attacks, ulcers, silicon breast implants and maxed-out credit cards. Manufacturers and sellers of cosmetics, pharmaceuticals and luxury items earn billions from fear-pressure.

Endangered Species
Of all adults, I think politicians are most vulnerable to extreme fear pressure. They are very careful about their image and reputation. When a politician campaigns for public office, the opposition tries to destroy his reputation. If there is any dirt in his past or present, it will be made public. That is why some running for high offices spend millions to keep their past a secret.

Success leads to increased exposure and higher expectations, which brings even more stress. I can imagine that the super-human demands made of politicians can be both exhausting and frustrating. They must constantly fear the consequences of making a wrong decision or comment that could prove disastrous for their career.

Christian Politicians
Politicians who have little time for religion have it easier than those who do. Candidates who claim to be Christians face the biggest challenge. A Roman Catholic candidate can expect to get most of the Catholic votes and a Muslim or Mormon will get virtually all votes from adherents of these religions, but there are many hundreds of protestant denominations and countless independent churches with varying theological positions. Sarah Palin, Michelle Bachmann and Herman Cain might have had a chance if they had not professed to be Christians.

When the apostles were arrested for preaching the gospel of a resurrected Christ, they responded by saying, "we must obey God more than men." That position cost them imprisonment, beatings and in most cases, their very lives; but it was the right thing to do, so they did it.

Being a consequent Christian has never been popular, so most politicians succumb to fear pressure. Declaring to fear God more than man places a politician "in harm's way" as the saying goes. The devil hates it, those under his influence don't like it and even fellow Christians hesitate to align themselves with that kind of politician.

Christians will always be unjustly criticized and smeared, but what is even more difficult to bear is justified criticism. In attempting to serve and obey God, there is a good likelihood that a person "gets dirty." Proverbs 14:4 says, Where no oxen are, the crib is clean: but much increase is by the strength of the ox. A child often stumbles when learning to walk and politicians also make mistakes.

What makes Christianity unique among religions is that it is based on confession, repentance, forgiveness and grace. Christian politicians must be humble enough to repent and seek forgiveness. God is quick to forgive, but unfortunately, even those who have been forgiven don't always forgive. That can cost a Christian politician the election.

EXPERT'S DIAGNOSIS AND DUMB PRESCRIPTION FOR A CURE
January 9, 2012

A stranger who recently bought a car from me said something unflattering and about "greedy politicians." I responded by asking, "What's wrong with that?" He gave me a shocked look that spoke volumes. After a few seconds of silence, I said, "Greed is not illegal. Greed is the American way of life."

The stranger was obviously not happy with that assessment but didn't know what to say. I continued, "Our problem in America is not political; it is spiritual. Fifty years ago, our Supreme Court ruled God out of public life. That was a political matter. But most Americans accepted the decision and espouse that philosophy. That is a spiritual problem.

I have been blogging about this situation now since 2007, but I don't have much of a voice. Yesterday, someone sent me a link to a secular website that makes a similar assessment of the condition of America. It is the Stansberry Investment Report from December. http://www.stansberryresearch.com/pub/reports/201112PSI_issue.html#continue
This article by investment broker Porter Stansberry is titled, "The Corruption of America." I agree with most of what Stansberry says about this nation, but disagree vehemently with his personal statement of faith. He writes, "The truth is, I am optimistic. I believe our country is heading into a crisis. But I also believe that... sooner or later... Americans will make the right choices and put our country back on sound footing."

Stansberry writes pages about the "corruption of America" in every sector without naming a possible cure. He just believes that "... sooner or later... Americans will make the right choices and put our country back on sound footing." He bases his assessment of America's corrupt condition on cold hard facts, but places blind faith in the American people who brought about this situation to "...sooner or later..." somehow fix the problem.

He has to have faith in the American people. His livelihood depends on it!