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Steyn: Kindly Note the Impending Bankruptcy

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Previously on The Perils of Pauline:

Last year, our plucky heroine, the wholesome apple-cheeked American republic, was trapped in an express elevator hurtling out of control toward the debt ceiling. Would she crash into it? Or would she make some miraculous escape?

Yes! At the very last minute of her white-knuckle thrill ride to her rendezvous with destiny, she was rescued by Congress’s decision to set up . . . a Super Committee! Those who can, do. Those who can’t, form a committee. Those who really can’t, form a Super Committee — and then put John Kerry on it for good measure. The bipartisan Super Committee of Super Friends was supposed to find $1.2 trillion dollars of deficit reduction by last Thanksgiving, or plucky little America would wind up trussed like a turkey and carved up by “automatic sequestration.”

Sequestration sounds like castration, only more so: It would chop off everything in sight. It would be so savage in its dismemberment of poor helpless America that the Congressional Budget Office estimates that over the course of a decade the sequestration cuts would reduce the federal debt by $153 billion. Sorry, I meant to put on my Dr. Evil voice for that: ONE HUNDRED AND FIFTY THREE BILLION DOLLARS!!! Which is about what the United States government currently borrows every month. No sane person could willingly countenance brutally saving a month’s worth of debt over the course of a decade.

So now we have the latest cliffhanger: the Fiscal Cliff, below which lies a bottomless abyss of sequestration, tax-cut-extension expiries, Alternative Minimum Tax adjustments, new Obamacare taxes, the expiry of the deferment of the Medicare Sustainable Growth Rate, as well as the expiry of the deferment of the implementation of the adjustment of the correction of the extension of the reduction to the proposed increase of the Alternative Minimum Growth Sustainability Reduction Rate. They don’t call it a yawning chasm for nothing.

Read more from this story HERE.

100 Days Until Taxmageddon

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Photo credit: AllenWestForCongress

Sunday will mark the start of the 100-day countdown to “Taxmageddon” – the date the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2013:

First Wave: Expiration of 2001 and 2003 Tax Relief. In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010). The following tax hikes will occur on January 1, 2013:

Personal income tax rates will rise on January 1, 2013. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.

Higher taxes on marriage and family coming on January 1, 2013. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level.

Middle Class Death Tax returns on January 1, 2013. The death tax is currently 35% with an exemption of $5 million ($10 million for married couples). For those dying on or after January 1 2013, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors on January 1, 2013. The capital gains tax will rise from 15 percent this year to 23.8 percent in 2013. The top dividends tax will rise from 15 percent this year to 43.4 percent in 2013. This is because of scheduled rate hikes plus Obamacare’s investment surtax.

Read more from this story detailing the Second Wave (20+ new Obamacare taxes) and the Third Wave (AMT Increases and Employer Tax Hikes).

Buffet Bill Moves to the Senate; Allows Buffet to “Put His Money Where His Mouth Is”

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The House on Wednesday passed Republicans’ own version of the Buffett Rule, which allows wealthy Americans to voluntarily pony up to reduce the deficit.

The bill, labeled the Buffett Rule Act, passed by voice vote, meaning Democrats and Republicans agreed with it. Under the legislation, which would still need Senate approval, taxpayers could check a box on their taxes and send in a check for more than they owe to the IRS.

“If Warren Buffett and others like him truly feel they’re not paying enough in taxes, they can use the Buffett Rule Act to put their money where their mouth is and voluntarily send in more to pay down the national debt, rather than changing the entire tax code to inflict more job-killing tax hikes on hard-working Americans,” said Rep. Steve Scalise, the Louisiana Republican who wrote the bill.

President Obama and Democrats had proposed a Buffett Rule tax, based on billionaire investor Warren Buffett’s statement that he shouldn’t pay a lower rate on his income than his secretary.

Investments are taxed at a lower rate than salary or wage income under the theory that they are spurring economic growth, so wealthy investors usually pay less as a percentage, though they end up paying far more in real dollar terms.

Read more from this story HERE.

France’s Socialist President Defends his 75% Tax Rate

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Photo credit: DonkeyHotey

Francois Hollande last night tried to justify his plans for multi-billion-pound tax rises to an increasingly disillusioned France.

The Socialist president, whose popularity has slumped, appeared on live television to convince the public his policies could help turn the country’s economy around.

During the 25-minute appearance, he unveiled plans for tax increases of ‘between 15 to 20 billion euros’ (£12billion to £16billion), targeting wealthy households, savings and firms.

The money raised will be used for public services, including thousands of new civil servant jobs.

He confirmed that ‘all earnings over one million euros will be taxed at 75 per cent’, adding: ‘It’s symbolic, it will show an example.’

Read more from this story HERE.

Romney: I’m Reluctant to Release Tax Returns Because of Tithing to Mormon Church

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Photo credit: Tim Pearce

Republican presidential candidate Mitt Romney said in an interview to be published Sunday that one reason he’s reluctant to release his tax returns is that they reveal how much money he and his wife have given to the Mormon church.

In an interview with Parade Magazine, Romney said his church “doesn’t publish how much people have given.”

“This is done entirely privately,” Romney told Parade. “One of the downsides of releasing one’s financial information is that this is now all public, but we had never intended to our contributions to be known.”

Romney said his contributions to his church are “a very personal thing between ourselves and our commitment to our God and to our church.”

Democrats have hammered Romney for refusing to release any tax returns beyond his release of his 2010 return and a summary of last year’s tax information. He has said he plans to release his full 2011 return before the Nov. 6 election.

Read more from this story HERE.

Obama’s classmate certain Columbia University secret threatens presidency

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I am President Obama’s classmate at Columbia University, Class of ’83. I am also one of the most accurate Las Vegas oddsmakers and prognosticators. Accurate enough that I was awarded my own star on the Las Vegas Walk of Stars. And I smell something rotten in Denmark. Obama has a big skeleton in his closet. It’s his college records. Call it “gut instinct” but my gut is almost always right. Obama has a secret hidden at Columbia- and it’s a bad one that threatens to bring down his presidency. Gut instinct is how I’ve made my living for 29 years since graduating Columbia.

Obama and his infamous strategist David Axelrod understand how to play political hardball, the best it’s ever been played. Team Obama has decided to distract America’s voters by condemning Mitt Romney for not releasing enough years of his tax returns. It’s the perfect cover. Obama knows the best defense is a bold offense. Just keep attacking Mitt and blaming him for secrecy and evasion, while accusing him of having a scandal that doesn’t exist. Then ask followers like Senator Harry Reid to chase the lead. The U.S. Senate Majority Leader appears to now be making up stories out of thin air, about tax returns he knows nothing about. It’s a cynical, brilliant, and vicious strategy. Make Romney defend, so he can’t attack the real Obama scandal.

This is classic Axelrod. Obama has won several elections in his career by slandering his opponents and leaking sealed documents. Not only do these insinuations and leaks ruin the credibility and reputation of Obama’s opponents, they keep them on the defensive and off Obama’s trail of sealed documents.

By attacking Romney’s tax records, Obama’s socialist cabal creates a problem that doesn’t exist. Is the U.S. Senate Majority Leader making up stories out of thin air? You decide. But the reason for this baseless attack is clear- make Romney defend, so not only is he “off message” but it helps the media ignore the real Obama scandal.

My answer for Romney? Call Obama’s bluff.  Romney should call a press conference and issue a challenge in front of the nation. He should agree to release more of his tax returns, only if Obama unseals his college records. Simple and straight-forward. Mitt should ask “What could possibly be so embarrassing in your college records from 29 years ago that you are afraid to let America’s voters see? If it’s THAT bad, maybe it’s something the voters ought to see.” Suddenly the tables are turned. Now Obama is on the defensive.

Read more from this story HERE.

Video: Trump lets it rip on Fox-Romney should give up tax returns when Obama gives us college, passport records

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I certainly don’t agree with Trump on everything, but this particular Fox interview was a home run. In it, Trump asks the question that every rational American should be thinking: why should Romney give up any additional tax returns when Obama is hiding virtually everything, spending at least $4 million to keep much of his past from public view?

Video: Sen. Harry Reid Is a “Dirty Liar,” says RNC Chair Priebus

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Republican National Committee chair Reince Priebus called Sen. Harry Reid a “dirty liar” this morning on “This Week” for accusing presumptive GOP presidential nominee Mitt Romney of not paying taxes.

Reid, the Democratic Senate Majority Leader from Nevada, said in an interview with the Huffington Post last month that, according to a source that called his office, Mitt Romney did not pay taxes for ten years. The accusation was strongly denounced by Romney, who said it was false and that Reid needed to “put up or shut up.” Romney, the former governor of Massachusetts has been under intense pressure by Democrats and even some in the GOP to release more tax returns.

 

Photo credit: Gage Skidmore

Government gone wild: IRS paying billions in fraudulent tax refunds

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Photo credit: saturnism

The IRS is paying out billions of dollars in fraudulent tax refunds to identity thieves; a problem that the tax service’s inspector general told CNBC is a “growing problem” involving numbers that are increasing “exponentially.”

In a new report to be issued Thursday, the inspector general for the IRS says that tax thieves are stealing the identities of taxpayers and then filing bogus returns on their behalf and collecting fraudulent refunds as a result.

The inspector general estimates that the IRS could issue as much as $21 billion in fraudulent tax refunds over the next five years.

The scam is so rampant that thieves are apparently sending in false returns in bulk without even bothering to change the mailing address on the returns. The inspector general said it found one residential address in Lansing, Michigan that was the source of an astonishing 2,137 tax returns, and to which the IRS directed more than $3.3 million in potentially fraudulent refunds.

In another case, a single residential address in Chicago was the source of 765 tax returns, generating more than $900,000 in potentially fraudulent refunds, the report said.

Read more from this story HERE.

Video: Pelosi makes another insane comment, this time about Jews & the GOP

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In perhaps one of her most inane comments since “you’ve got to pass the bill to know what’s in it,” Pelosi makes an incredibly convoluted and illogical argument that the GOP is criticizing Obama on Israel only to “exploit” the Jewish vote for cutting taxes.

 

If you couldn’t follow it in the video, here’s the transcript:

HUNT: Do you think he’ll do as well with the Jewish vote this time as he did last time?

PELOSI: The election will tell us that.

HUNT: What do you think?

PELOSI: But I – I think that he will. I think that he will, because the fact is when the facts get out. You know, as many of the Republicans are using Israel as an excuse, what they really want are tax cuts for the wealthy. So Israel, that can be one reason they put forth.

HUNT: That’s why some of the Republican Jewish supporters are really active.

PELOSI: Well, that’s how they’re being exploited. And they’re smart people. They follow these issues. But they have to know the facts.

 

Photo credit: barbwire55