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Gary Novak Science is Broken |
Welcome to The Real World Of Economic Fraud Lowering Taxes. Conservatives claim they lower taxes and Democrats raise taxes. Every penny Democrats plan to spend is said by Conservatives to be a tax increase, because spending equals taxes. Wall Streeters were given a two trillion dollar tax reduction (long before the bailout), which is said to mean conservatives lower taxes. There is no difference between spending money and not collecting it. Deficit spending is a tax increase whether it is caused by a phony tax break or a social program. When operating in the red, every penny of tax reduction for someone is a tax increase with interest, because it has to be paid sometime just as much as any other spending does. There is no such thing as a tax reduction when operating in the red. The claimed reductions are increases with interest. Isn't the middle class overjoyed that they get to pay a tax increase of two trillion dollars with interest to the Wall Streeters. (See Mathematics below.) Conservatives increase taxes by not adjusting for inflation. As the dollar value of income goes up due to inflation, the taxes go up, while buying power goes down due to expenses increasing. Conservatives do not adjust for inflation, because they oppose rationality beyond three word slogans, and they considering such adjustments to be socialism. The middle classes were not paying much taxes thirty years ago. They pay taxes now due to lack of correction for inflation. They also pay more taxes due to burdens shifted away from the federal government and onto state and local governments. Stimulating the Economy. The purpose of giving a $2T tax break to Wall Streeters was said to be to stimulate the economy. Persons who handle a lot of money supposedly know what to do with money. They couldn't just keep plowing more into the stock market, which Greenspan called "irrational exuberance;" so they invested their tax break in real estate and created the housing bubble. Sub-prime mortgages did not create the housing bubble, because people who lived in their houses did not create the bubble or cause it to burst. Speculators created the bubble, and they caused it to burst when they pulled their money back out. Redistribution of Wealth. The income tax used to be progressive, meaning it was on a graduated scale, where it increased for the rich and decreased to almost nothing for the lower half of society. That was before conservatives corrected "eighty years of liberalism gone awry." Now Warren Buffet says he pays 7% taxes, and his secretaries pay 13%a reverse gradient. That's channeling wealth upward. The plan by Obama to reduce taxes for 95% of society while increasing taxes for the upper 5% is said by McCain to be a "redistribution of wealth," as if that were a bad thing. Why wasn't it a bad thing to redistribute $2T in tax breaks to the Wall Streeters? Redistributing wealth is the only thing Conservatives use government for. Judgmentalism. Barack Obama coming into contact with William Ayers was supposedly "bad judgment"; and not just any old bad judgment but associating with a terrorist. So the other members of the same education board were also associating with a terrorist. The Patriot Act makes association with terrorists punishable by death, if the terrorist should benefit from the result. What is association without benefit? So a good citizen must draw lines; and those lines must be drawn the same way Conservatives draw them. Some persons must live, and some must die. The rational world does not judge. Laws prevent discrimination. The way it works is that objective reality creates a medium for life. Non discrimination is looking only at objective realities and not at subjective concerns. The entire reason is because it is not possible to judge subjective concerns. It's like having to explain what you do in your bedroom and why. It can't be done. But the bigots, McCarthyites and Nazis demand it anyway. Voter Fraud. McCain, Conservatives and brainless media hacks are really shook up over serious voter fraud which is threatening democracy in the form of voter registration forms which are not legitimate. The purpose of voter registration is to make sure no one votes more than once when identifying themselves at the polling station. No matter how the registration forms are screwed up, they do not promote voting more than once. There is no consequence to the fake problem. More Voter Fraud. The voting process has been in chaos due to purged voting lists which must now be maintained at the state level rather than precinct level, and no one can determine what lists to use for verification. The purpose is to make sure someone doesn't vote who is not supposed to vote. Why are there persons who are not supposed to vote? Because some states prevent criminals from voting. So the election process is being poured down the drain to make sure criminals don't vote in some states. What would happen if they did? Taxing Businesses out of Business. Supposedly, Democrats would put businesses out of business by increasing their taxes. Or Businesses will be driven off shore to escape the tax increases of the Democrats. There is no such thing as a business tax. In this country, at this time, only profit and worker incomes are taxed. Workers don't get laid off because of a profit tax. Expenses are not taxed. Combining it all together. Reagan wasn't going to saddle his grandchildren with an $800 billion dollar government debt. So he increased it by a factor of ten to about $8 trillion. When leaving office, he was asked about it. He said deficit spending is good for the economy, because it creates jobs. When Bush-1 became president, he could not create a budget with Reagan's huge deficit. So his administration transferred social security (with its trillions of dollars of reserves) onto the general balance sheet. Now social security is called "employment tax," and it is used to finance wars and tax reductions for the rich. The homeless who work part time pay the same 13.5% as others but get nothing out of it. That's how conservatives lower taxes. The employment tax, (which used to be social security) does not apply to income over $90,000 per year, because the rich don't need social security. After it became a tax, it was not changed to apply to the rich. And it was also doubled during the Reagan years from 7% to 13.5%. It worked so good, that conservatives started talking about a "flat tax," as if they didn't already create one. Then they said social security is broke and must be replaced with a Wall Street gamble like 401-Ks. That's increasing taxes, creating a flat tax, redistributing wealth upward, deficit spending, bankrupting the government, cutting social programs, destroying the economy and blaming the democrats for doing it. Mathematics of a Fake Tax Break So-called tax breaks increase the federal deficit the exact same amount as increased spending. A tax give-away of $250 billion increases the deficit by $250 billion. You might think anyone would already know this; but why then do conservatives keep saying they are lowering taxes. Increasing the government deficit is not lowering taxes. It's adding interest to the taxes.
At the end of the year, the taxpayers owe $600 billion more than the previous year; and interest increases it by about 5% per year, or $530 billion. The so-called tax break created more of a taxpayer burden ($250 billion) than the increase in spending ($150 billion). Maybe conservatives don't believe that their fake tax breaks are supposed to show up on the balance sheet. So we'll do a more detailed balance sheet.
With the tax break, the taxpayers owe $250 billion more than they otherwise would ($10.6 - 10.35 = 0.250 trillion) due to the reduction in taxes received. Would not any idiot know this? If anyone should notice, conservatives claim they reduce deficit spending by cutting social programslike cutting Medicaid every once in awhile, while health expenses increase 10% per year; cutting Low Income Energy Assistance (LIEA), while the cost of heating triples; cutting programs for cops and Forest Service; etc. At the same time, they give $2 trillion tax break to investors, $800 billion to drug companies to rearrange some bookkeeping, $1 trillion Wall Street bailout, etc.
The government debt is supposedly about $11 trillion. But social security is used to reduce it. The social security surplus should be around $10 trillion. The government owes that amount to social security. That means the real government debt is around $20 trillion. Who's going to pay it? The green Martians? So conservatives got a debt of $800 billion from Democrats in 1980 and increased it to $20 trillion; and they call that lowering taxes and creating small government.
Reverse Ethic Obviously, taking from the needy and giving to the rich does not make sense in economic terms. In fact, the money which is stolen is poured down a rat hole on Wall Street in trillions of dollars. The economy is sacrificed to some other purpose. The reason why it is done is a reverse ethic. Sin, when repeated over and over, creates an ethical standard which is the reverse of morality. Morality is a standard with consequences which tell people that they must not sin, or it defines them as destroyers, and they must pay a price as social rejects. The basic ethic of morality is to do as much good for others as possible. Sin reverses that ethic causing corrupt persons to never do good for someone else. Corrupters are driven by a force inside them to make sure no one else benefits from their behavior. They try to rationalize that force as if it had a logic, but their rationalizations are incredible. What corrupters mean by socialism is someone benefiting from the efforts of others. It's not a rational economic policy; it's an incredible reversal of morality. It's not how many hours you work that determines your worth; it's what you get paid. Thievery is the most important thing in society. That's the strange motive that drives the bankruptcy of the economy.
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