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Comment by Kathleen St on February 2, 2012 at 11:29am

r2 Patty: absolutely. PAN2 keeps me out of the loop.  PAN1 is MUCH better than PAN2.

Comment by John Wayne Sitterley on January 29, 2012 at 5:43pm

Dear Members; Aside from the imperative need to reduce the burden of entitlement spending, we find that 'tax-reform' can end the economic crisis within one years time. If I may share it with you now.

In the spirit of monetary analysis we will use these ideas as a guideline for these analyses and we will attempt to show at what level a Flat-tax should be implemented to cover the proposed 2012 budget set forth in the Continuing Resolution (CR) of April 2011 concerning the $3.7 trillion proposed budget.

Knowing that there are mean incomes variations set forth in nine (9) different regions and from rural to urban areas as researched by the Bureau of Labor Statistics (BLS). For the purpose of calculation, a general view of income as a conservative estimate of mean income will be calculated by combining mean family income of $45,000, mean government income of $70,000 and mean corporate income of $160,000. This will give us an overall combined mean income of $91,600 dollars. This figure will be used for this calculation.

Personal Income Tax: Since ‘taxable income’ will start at $10,000, 151 million people constituting full and part time working citizens will be used to calculate the needed flat-tax to cover the current 2012 Budget of $3.7 trillion.

The population count should adjust for the accounting for and from an 8.1% to 11.4% unemployment rate and those making under $10,000 and/or are on health and retirement plans. Neither inflation nor base-line budgeting will be used for the purpose of these calculations.

A Flat-tax of 14% will be used for the purpose of these calculations [down from the current 27%-56% now used] thus cutting personal national income tax already by nearly half.

The Calculation: Using a flat-tax of 14% we will carry out the calculation. Thus; $91,600 minus $10,000 non taxable income=$81,600 taxable x .14= $11,424 x 151 million people = $1,725,024,000,000 [$1.7 trillion].

The goal is still short by $2 trillion dollars.

Corporate Income Tax: However…By taxing all forms of Corporations only 20% [down from the 35% that they currently rarely pay] will help balance the deficit and give them a ‘stake-in-the-game’. The Mean Corporate income of 275 Fortune 500 companies is $102 billion dollars each thus totaling 28,050,000,000,000 trillion gross income combined. With ALL the Fortune 500 companies plus all other American corporations inside and outside our borders weather or not their main office is in Ireland, the Caymans, the Netherlands, Dubai or any other country utilizing the ‘Double Irish’ or ‘Dutch Sandwich’ as tax loop holes or non-compliance, will be expected to pay their income tax…No exceptions will be allowed.  

For a working figure for all American corporations, $29 trillion gross income will be used.

Thus; 20% of $29 trillion = $5.8 trillion dollars. Yes…$5.8 trillion.

Using $2 trillion to cover the budget short-fall above, this will leave a 3.8 trillion dollar surplus within the first year of which we can pay off the Chinese debt of $2 trillion. The reserve surplus of $1.8 trillion will be used to start paying down the principle of our $15.1 trillion dollar sovereign debt while spending cuts; the down-sizing and/or decentralization of governmental departments, agencies and institutions ensue.

Multi-National Corporation Income Tax: Most International Tax Treaties with other countries will have to be renegotiated or the tax burden for MNC’s (Multi-National Corporation) will exceed their current level. Since protections for American corporations are given by law, reciprocal revenues should be collected. The 20% tax on a MNC will be paid to the US Treasury is both non-negotiable and nor will be allowed any exemptions.

Example: Let us use China for example which ranges anywhere from 15% to 25% tax for MNCs doing business over-seas. If the MNC is a ‘cutting-edge’ company that China wants, then their tax rate is lowered to 15%...If not it is 25%. High tech companies are given a larger tax break if the host country desires their “patents and knowledge” (pending copyright enforcement and national security interests). If high tech MNC-A is paying 15% in China, paying the 5% balance to equal 20% to the US would seem fair but skew the US tax revenue by a negative -15%. Therefore that is not acceptable. If MNC-A was low tech and paid 25% to China, they would under the new provisions NOT get a 5% rebate from the US. That would also be unacceptable.

What would be more likely to happen...Is that if high tech MNC-A paid 15% to China...They still owe 20% to the US, thus making their total tax burden overseas 35% as a cost of doing business…Unless they renegotiate their Tax Treaty.

Renegotiation example: If MNC-A pays 15% to China and 20% to the US where they are based then their tax burden is 35% unless the Chinese are willing to renegotiate their Tax Treaty (Tax Treaty is required before granting or extending a Most Favored Nation Trade status).  

If China renegotiates and are willing pay to the US say 10% (or whatever settled amount) of that 15% to the US, while the MNC pays the other 10% or remainder from their gross income, then that will make the MNC’s total tax burden then only 25% and the 20% tax requirement paid to the US Treasury fulfilled. Still 10% lower than what they are required to pay today at 35% but don’t due to current tax loop-holes. Which ever way, a 20% corporate tax is what is required and is what will be paid to the US Treasury.

“In many places around the globe already, taxes are paid “before” the final global “passport-transaction” (who gets what, when & how) takes place to the banks. This makes it real simple. This can and should be paid either in cash or accrual method to reduce loopholes and accounting errors.” (Robert Halcombe, CEO the Sovereign Group)

Note: Aside from executive remuneration and managerial payment allocation doing a complete 180 degree shift in the last twenty years from; i.e. employee, company stockholder to stockholder, company, employee while passing on high-risk portfolio’s to the American tax-payer, know this…The payment of taxes from the corporate world is probably the single most important factor that would restore financial responsibility, integrity and obligation of governmental operations under this current economic crisis and its recovery while reducing the tax burden at the same time. From the latest survey by the Pew Research Center, about two-thirds of Americans now believe there are “strong conflicts” between rich and poor in the United States. One may want to consider; who is in whose pocket.

Thank you; John Wayne

Comment by Frankie Ray on July 20, 2011 at 2:16am

President Obama keeps telling us what might not be paid if the debt ceiling isn't raised.

That's the wrong answer to a question that America isn't even asking.

This new iCaucus Video calls on the President to answer the real question:  

"Mr. President,  if the debt ceiling isn't raised and you're not planning on paying our debt obligations, or social security, or  medicaid, or our military personnel...even though you will have more than enough money to do so...then what's more important and what will you be paying instead with the $180 billion that the government will keep collecting every month?"

 

 

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Comment by John Wayne Sitterley on July 15, 2011 at 1:29am

Drinking With an Arizona Girl
A Mexican, an Arab and an Arizona girl are in the same bar in Phoenix.
When the Mexican finishes his beer, he throws his glass in the air, pulls out his pistol, and shoots the glass to pieces. He says, “In Mexico, our glasses are so cheap we don't need to drink from the same one twice.”
The Arab, obviously impressed by this, drinks his non-alcohol beer (cuz he's a Muslim!), throws it into the air, pulls out his AK-47 and shoots the glass to pieces. He says, “In the Arab World, we have so much sand to make glasses that we don't need to drink from the same one twice.”
The Arizona girl, cool as a cucumber, picks up her beer, downs it in one gulp, throws the glass into the air, whips out her 45 and shoots the Mexican and the Arab. Catching her glass, she sets it on the bar and calls for a refill then says; “In Arizona, we have so many illegal aliens that we don't have to drink with the same ones twice.” God Bless Arizona
Anonymous: Circa 2011, USA

Comment by John Wayne Sitterley on June 22, 2011 at 3:44pm

Concerning the Greek (Hellene) Bail-outs. Please allow me to briefly address this issue. Let us use as a base the US Constitution that ensures the individual over the collective first as our premise for all thought here.

As a historical note pertaining to Europe: In light of the approved restructuring of the Greek (Hellene) debt to maintain liquidity which Chancellor Merkel and Dutch Finance Minister de Jager wrestled with, out of the $157 billion approved loan, up to $108 came from the American citizen via the IMF. Keep in mind that the IMF, the World Bank, the UN and the Keynesian economic system became effective in 1945-6 to be used in the Marshall Plan.

Much of the problem with Greece has been in the corrupt 'lease/rent' area of the economy which is in the billions but provides 'favors' to the citizen in lieu of their vote. This system of trade can be found in all socialist countries that started during WWII as the "partisans' and seemed harmless enough at the time. An example of that is; "Sure we can install phone service to you in about three months...But if you leave a couple bottles of wine on the counter I can have a workman out there tomorrow."

Never the less, that form of corruption has pretty much taken over the whole of the Eastern European block of countries for you must also realize, that though WWII ended in 1945 for us...It did not end over there until twenty years latter [1968 Russians in Czech] making the 'Partisan' way of life a fairly entrenched method of business...so let us look at the facts and not jump to conclusions for 'populist' reasoning. The truth is more digestible.

Concerning our current situation in America, and if we use the Constitution as a base for our reasoning process, quite simply the wrong economic model was chosen by the Roosevelt/Truman Administration. ALL economic systems run the gambit from the collective to the individual. Our Constitution is based on the individual but yet we employ an economic system that is based on the collective. Ummm.

So who are collectivist regimes. Easily it is communism and fascism. All would agree to this simple statement. So now let us look at the Bail-outs' from 2007-11 totaling $1.4 trillion dollars in non-partisan terms.

If the bail-outs happened and the government replaced the CEO with a party leader and then reap the profits of that company you would have communism...If you replaced the CEO with a civilian and reaped the profits you would have fascism. ummm.

So now when you here people say that 'the bail-outs should have never happen', this is why they say it. It was an Unconstitutional act. This is also why, along with the housing market collapse, that we have the failure today and instead of letting the system work it self out, which is what Austrian or Chicago sch would do, we're printing money which make the economy inflationary.

The actions of the last two administrations created this. It is a 'economic hurricane'. We just passed through one side of that hurricane with the housing market debacle and the bail-outs. Now with the printing of money we are NOW in the eye of that hurricane. Within a year we will pass through the other side and I can pretty much predict with certainty that it will not be pretty. Hope this helps.

Thank you. Best John Wayne

Comment by Metalchemist on June 20, 2011 at 10:14pm

 Dr. (Senator) Ron Paul is a advisor to the Mises Instute of Austrian Economics and has been stating this for decades.

A suggested reading is "End The Fed" by Dr. Paul.

 

Semper Peratus.

Acta Non Verba!

Comment by John Wayne Sitterley on June 20, 2011 at 7:47am

Ladies & Gentlemen; Thank you. If I may share a true story. Back in 1945-46, which ushered in the UN, the IMF and the Keynesian economic system to rebuild Europe under the Marshall Plan, a US Major General and a German Advisor were placed in-charge of their respective sectors to employee the Keynesian program. Soon the Advisor, being confronted by his people to see what can be done to speed up the process, made a descission to switch over to the Austrian economic system freeing up the restrictions and regulations placed upon them. Within months the American Major General, noticing that the German sector was improving by leaps and bounds, then drove over to meet with the advisor and said; "So you're using a different economic model. My people tell me that that system doesn't work." to which the German Advisor said; "Ya...My people tell me the same thing...But it vorks."

Anyway...The point is that we can see the same story unfold today. The Keynesian model is employed throughout Europe and America still today, which also coincides with the centralization of the banking and political communities.

Recently it has been, and only been, Chancellor Merkel of Germany which is heading in the right direction for Europe and that is to drop the Keynesian Plan and adopt Austrian economics while opening trade with the Russian Federation. We are more closely aligned with the Russian Orthodox culture, than we are with the East. With the economic threat that Europe and America faces, we should all take the opportunity to follow her lead and decentralize to better address the concerns of their respective citizenry in a timely manner and to aid in prosperity. This must be accomplished soon. Why does this matter one may ask?

It matters because just to the South is 'Radical Islam'. Put your finger on a map. Now run a line from Seville to Volgograd. Their [Radical Islam] intent is to destroy the West. This is a fact. What Europe and America need realize and do to protect themselves is two things. One; switch to a free economic system to create individual prosperity which frees up the currency to afford a defense and , two, decentralize parts of their governing apparatus to better serve their people and gives that regional governing body a chance to respond to local threats in a timely manner.

With a more productive economic system and a more locally decentralized system of governance which acts like 'circling the wagons', creating a quicker response time along their borders, from not having to wait from someone in 'high command' to issue a warning after years of debate, Europe and America may survive. As the system to sustain a culture is set up now...They will not.

Best; John Wayne       

Comment by Frankie Ray on February 25, 2011 at 1:08am

Greetings fellow Patriots:

 

Peter Schiff...who is Ron Paul's Economic Advisor...is keynoting an Economic Summit on Saturday, and there is an on-line broadcast available so anyone can watch the proceedings from the comfort of your own living room without having to travel to see him...and this Economic Summit is co-sponsored by Patriot Action Network.

 

Who is Peter Schiff?  Here's a great short video of Peter Schiff telling it like it is and exposing the sub-prime mortgage crisis, and Bailouts, and inflation, and the culprits (by name!) a full year before the economic crisis hit us:

 

Now this Saturday at the Economic Summit, Peter Schiff will be presenting very specific and concrete solutions to get our Economy back on the same track...and you do not want to miss it!

 

The best part is that if you are busy Saturday...you know, like counter protesting the Union thugs in Wisconsin or Ohio or something...and you can't watch the event or attend it in person, you can still sign up for the on-line broadcast and you will be sent a DVD recording of the entire proceedings so you wont miss any thing!

 

Here's the link with all the details about the Economic Summit, including all the speakers and sessions, and info on registering to watch broadcast and get the DVD recording:

 

http://tinyurl.com/wecount

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Comment by Frankie Ray on February 20, 2011 at 1:34am

This short video puts the Federal Budget into its proper perspective....plus details about the Economic Summit with Peter Schiff that is co-sponsored by Patriot Action Network

 

tinyurl.com/wecount

 

Comment by John Wayne Sitterley on February 18, 2011 at 4:53pm

Dear Friends; The Wisconsin move against the Unions is a welcomed sign. Also...This new clip from Chigago University concerning the issue of economics and the budget is also interesting. I don't belive it goes far enough, but there is at least talk on "Fiscal Consolidation" which is the antithesis of the Keynesian model, and reflects the economic crisis in their discussion. It's long so get some wine and a cigar... http://www.youtube.com/watch?v=tN3awPki0sI

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