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What Soaking the Rich Gets Us: Deficits Forever

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Last week, the progressive think tank Center for American Progress (CAP) released their tax reform plan [pdf], supported by prominent left-wing budgeters and economists like Robert Rubin and Lawrence Summers. The net effect of this tax reform plan is a massive tax hike on “the rich” in order to fall far, far short of the revenue necessary to eliminate America’s deficit.

The CAP plan would eliminate deductions, close loopholes raise rates, implement new taxes, increase sales taxes, create new taxes… basically every form of a tax hike you can think of, all implemented on households with income above $250,000 per year.

What this gets, according to the Center for American Progress, is a tax system that barely raises Clinton-era levels of tax revenue, while the spending side of the ledger still projects to explode. CAP’s plan gets tax revenue of 20.3% of GDP, below the Clinton years’ high of 20.6% of GDP, with government spending projected to be significantly higher even under the most optimistic of situations. And by the 2030s, government spending is still projected to be over 25% of GDP in the most optimistic of scenarios. (You do not want to know what the pessimistic scenarios are. Something along the lines of an apocalypse.)

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Sowell: Taxing the Poor

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With all the talk about taxing the rich, we hear very little talk about taxing the poor. Yet the marginal tax rate on someone living in poverty can sometimes be higher than the marginal tax rate on millionaires.

While it is true that nearly half the households in the country pay no income tax at all, the apparently simple word “tax” has many complications that can be a challenge for even professional economists to untangle.

If you define a tax as only those things that the government chooses to call a tax, you get a radically different picture from what you get when you say, “If it looks like a tax, acts like a tax and takes away your resources like a tax, then it’s a tax.”

One of the biggest, and one of the oldest, taxes in this latter sense is inflation. Governments have stolen their people’s resources this way, not just for centuries, but for thousands of years.

Hyperinflation can take virtually your entire life’s savings, without the government having to bother raising the official tax rate at all. The Weimar Republic in Germany in the 1920s had thousands of printing presses turning out vast amounts of money, which the government could then spend to pay for whatever it wanted to pay for.

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Full-Court Press: Global Warming Hysteria Pushed by National Intelligence Council and Department of Defense?

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photo credit: donkeyhotey

A new U.S. intelligence community report finds that climate change will fuel new conflicts and competition for resources in coming decades.

The federal National Intelligence Council’s “Global Trends 2030” report issued Monday follows Defense Department analyses that have similarly called climate change an emerging security risk.

“Demand for food, water, and energy will grow by approximately 35, 40, and 50 percent respectively owing to an increase in the global population and the consumption patterns of an expanding middle class. Climate change will worsen the outlook for the availability of these critical resources,” the report states.

Elsewhere, it notes that climate change is among the factors that will drive conflict in some regions.

“[M]any developing and fragile states — such as in Sub-Saharan Africa — face increasing strains from resource constraints and climate change, pitting different tribal and ethnic groups against one another and accentuating the separation of various identities,” the report states.

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Egyptian Reporter Given a Disturbing Look Inside the Muslim Brotherhood’s ‘Torture Chambers’

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A chilling report recently published in the Egyptian newspaper, al-Masry al-Youm, reveals that the torture chambers once utilized by the Hosni Mubarak regime to tamp down protesters are being put to the same if not greater use by the country’s new, self-proclaimed dictator, Mohammed Morsi.

Despite the Obama administration and worldwide media’s insistence that the election of the Muslim Brotherhood leader was a watershed moment for democracy in the Middle East, it would seem those hopes are on a rapid downward trajectory as reports of savage beatings and brutality against Egyptian protesters, abound.

This disturbing revelation came to light just days ago when an al-Masry al-Youm reporter, with the help of a Brotherhood-owned and operated television station, was given an exclusive tour of the torture chambers. While one might think the decision to grant a journalist access to such a chilling look into the way the Muslim Brotherhood treats its critics as counter-intuitive, it makes perfect sense. After all, what could possibly ever serve as better warning for those even thinking of resisting Morsi’s push for a totalitarian regime based on sharia law than to know what will happen to them if they do?

Al-Monitor reports that the central torture chamber is located near the Ittihadiya Palace, just opposite the gates facing the Omar Ibn Abdel Aziz Mosque. The street is reportedly “secured with a cordon and iron barriers, where the Central Security Forces (CSF) barr any and all access without the authorization of the Brotherhood.

During the three-hour visit, the al-Masry reporter explained that “protesters suspected of working against the Muslim Brotherhood are tortured and beaten with the knowledge of the police before being handed over for formal detention.”

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The Federal Government Now Borrowing 46 Cents Out of Every Dollar It Spends

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photo credit: david gaines

After all of his seemingly endless campaign stops and harsh rhetoric about the rich not paying “their fair share,” it turns out that the president’s proposed tax hikes on “the rich” will only raise enough revenue to run the government for about eight days. But that doesn’t really matter, of course, because it’s all about “fairness.” In other words, if Washington lawmakers are serious about reducing the federal deficit — as they claim to be — the real solution is that they must stop borrowing and spending money we don’t have. We cannot carry on like this indefinitely:

The federal government borrowed 46 cents of every dollar it has spent so far in fiscal year 2013, which began Oct. 1, according to the latest data the Congressional Budget Office released Friday.

The government notched a $172 billion deficit in November, and is already nearly $300 billion in the hole through the first two months of fiscal year 2013, underscoring just how deep the government’s budget problems are as lawmakers try to negotiate a year-end deal to avoid a budgetary “fiscal cliff.”

Higher spending on mandatory items such as Social Security, Medicare and interest on the debt led the way in boosting spending compared with the previous year, which also highlights the trouble spots Congress and President Obama are struggling to grapple with.

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Obama’s Money Plans Backed by Communists

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The Communist Party USA is backing Barack Obama’s position on the coming fiscal cliff, and claims its economic program “will unfold in the coming year” with the reelection of Obama and continued Democrat control of the U.S. Senate.

The statement came from Joelle Fishman, chairwoman of the Connecticut Communist Party, during a recent conference call on the upcoming fiscal cliff.

The conference call titled, “Don’t Bargain with People’s Lives” featured an economic report by CPUSA national vice-chair Jarvis Tanner, who said Obama’s demands in the fiscal cliff debate are exactly what the country needs.

Republicans have said any revenue increases must be accompanied by spending cuts. However, Obama has countered by saying he wants Congress to raise taxes more, extend unemployment benefits beyond the current 99 week limit, pass an additional $50 billion in stimulus spending, and grant him authority to raise the debt limit whenever he wants.

Tanner says the president’s position shows that unlike the Republicans, he is making a “serious proposal” and he is backing Obama’s proposals.

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Liberals Suggest that Obama Mint Two Trillion Dollar Coins to End Fiscal Crisis

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If President Obama wants to avoid an economic calamity next year, he could always show up at a press conference bearing two shiny platinum coins, worth… $1 trillion apiece.

Okay, that sounds utterly insane. But ever since last year, some economists and legal scholars have suggested that the “platinum coin option” is one way to defuse a crisis if Congress can’t or won’t lift the debt ceiling soon. At least in theory.

The U.S. government is, after all, facing a real problem. The Treasury Department will hit its $16.4 trillion borrowing limit by next February at the latest. Unless Congress reaches an agreement to raise that borrowing limit, the government will no longer be able to borrow enough money to pay all its bills.

Last year, Republicans in Congress resisted lifting the debt ceiling until the last minute — and then only in exchange for spending cuts. Panic ensued. So what happens if there’s another showdown this year?

Enter the platinum coins. Thanks to an odd loophole in current law, the U.S. Treasury is technically allowed to mint as many coins made of platinum as it wants and can assign them whatever value it pleases.

Under this scenario, the U.S. Mint would produce (say) a pair of trillion-dollar platinum coins. The president orders the coins to be deposited at the Federal Reserve. The Fed then moves this money into Treasury’s accounts. And just like that, Treasury suddenly has an extra $2 trillion to pay off its obligations for the next two years — without needing to issue new debt. The ceiling is no longer an issue.

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FEMA Teams Told to ‘Sightsee’ as Sandy Victims Suffered

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Hurry up and wait.

That’s what first responders were left to do after being deployed by FEMA to assist in the storm-ravaged areas in the initial days after superstorm Sandy, FoxNews.com has learned. A FEMA worker who spoke to FoxNews.com described a chaotic scene at New Jersey’s Fort Dix, where emergency workers arrived as the storm bore down on the Atlantic Coast. The worker said officials at the staging area were unprepared and told the incoming responders there was nothing for them to do for nearly four days.

“They told us to hurry, hurry, hurry,” the worker, who works at the agency’s headquarters in Washington and volunteered to deploy for the storm recovery effort. “We rushed to Fort Dix, only to find out that our liaison didn’t even know we were coming.”

“The regional coordinator even said to us, ‘I don’t know why you were rushed here because we don’t need you,’” said the worker, who spoke out of frustration with the lack of planning and coordination following the devastating storm.

‘I worked in Katrina and Katrina was run better than Sandy.’

Read more from this story HERE.

Smith and Wesson Posts 48% Increase In Second Quarter Sales As Demand Surges For All Firearm Products

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photo credit: gre.ceres

U.S. firearms manufacturer Smith and Wesson reported a 48 percent increase in sales in its announcement of the company’s second-quarter financial results for fiscal year 2013.

The company’s press release read: “Net sales from continuing operations for the second quarter were a record $136.6 million, up 48.0% from the second quarter last year. The increase was led by continued strong sales across all of the company’s firearm product lines.”

As CNSNews.com previously reported, gun sales have surged since the reelection of Barack Obama, reaching an all-time single day record on Black Friday this year with 154,873 background checks completed by the FBI.

Read more from this story HERE.

Unemployment Rate Falls; Number of Unemployed Stays the Same

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If it looks like there’s something weird in today’s unemployment announcement, that’s because there is. While the U-3 unemployment rate has declined slightly, to 7.7 percent, that doesn’t seem to reflect an increase in the number of Americans who are actually working.

In fact, labor force participation, the more important statistic for American workforce measurements, is down slightly. The unemployment rate looks better because it’s being measured against a smaller denominator. At Eagle Daily Investor, which is owned by the parent company of Human Events, Paul Dykewicz explains why it’s important to look beyond the headline statistic:

” . . . in November, 2.5 million persons were “marginally attached” to the labor force, essentially unchanged from a year earlier. The data, which are not seasonally adjusted, reflect individuals who the federal agency described as not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. However, those people were not counted as unemployed because they had not searched for work in the four weeks preceding the survey, the Bureau of Labor Statistics explained.”

Read full story HERE.