The Fiscal Cliff Simplified-Part 2

Post #145 ( a continuation of #144)

So, we’ve been discussing the Taxes and Entitlements in this “Fiscal Cliff”.  But, we need to conclude the Entitlements topic.

Entitlements-cont.

When congress began talking about the need to cut or even eliminate social insurance programs, people in the program (that’s everyone non-voluntarily contributing money) screamed that they were “entitled” to the money they had “deposited” with the government.

The President proposes reducing entitlement benefits (pay out). Ouch!

The Republicans propose to double the cuts (double ouch!) AND move the Medicare age to 67.   Medicare came into existence in 1965 as a federal insurance program that you pay into your entire life.

No matter which plan wins out, be certain of this; that those who have paid into the “social bank account” will get less and those paid nothing will lose nothing.

Debt Ceiling

The President proposes a “no debt ceiling”, debt ceiling.  In other words, he wants the authority to increase the debt when the credit card is full. How many of you never pay off your credit card and get to keep borrowing more and more?

The Republicans cry foul, the debt ceiling is a number which is approved by congress.

Some thoughtsLet’s think on these.

1.  During the race for president, the press made quite a deal about Romney’s 15% tax rate, compared to our 23%+ rate.  I think it best to find out WHY his rate was only 15%.  Whatever reduced his tax rate should be eliminated.

2. Anyone who can afford a second home, doesn’t need an itemized mortgage interest nor property tax deduction on the tax return for that second home.

3.  Up to 50% of businesses don’t pay any taxes, number 1 above applies to you too.

4.  U.S. business that moves it money “off shore”, need to pay a fee of $1000 for every transaction it conducts within the U.S., ie, each phone call, each gallon of gas purchased, each electronic fund transfer, etc for the protection it is afforded for operating in the U.S.

5.  Let’s make Social Security Early retirement 2 years preceding the eligible full Social Security and make Medicare the same age as the full Social Security age.

The Radical Thoughts

1.  All businesses pay taxes on Gross Income, without any deductions, at a rate 0.5%.

2.  Let’s cut the Individuals tax rates back to 1.0%…on everyone, and eliminate all deductions and adjustments on Gross Income over $15,000

3.  If you are individual who has moved your money “off shore” to avoid taxes, you lose your U.S. Citizenship, i.e. you can be a citizen “off shore”.!

4.  How about, only Real Property Owners get to vote in an election.  (I can’t take credit for this, it was my son-in-laws idea)

5.  Here’s a thought…why not jump off the cliff?  Everybody calls this the Bush-era tax cuts, that means they’ve been around for 12 years.  If our taxes will increase on average by $2000, then we saved $12,000 over these years. What did you buy with that money that helped the enconomy…maybe it’s time to “pay up”.  It’s obvious that the parties can’t compromise, some smart person, years ago determined if they can’t “get together” then the obvious place to begin cuts, is defense, services, and other places, ( I hope other places includes entitlements to foreign governments!) and to raise taxes.  Maybe it’s time to tighten the belt and let the economy fix its self.

6.  “Obama Health Care”, how much did your health costs and/or premiums go down?

For those who wanted my observations, here they are…for those that didn’t……..I’ll go back to my usual ranting next time.   🙂

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About tgriggs17

Retired, CPA, enjoy freshwater fishing, being with my grandchildren, friends and family
This entry was posted in Learning, Life, The Economy, Uncategorized and tagged , , , , . Bookmark the permalink.

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