by Jim » Sat Jun 04, 2011 6:35 am
Today, the unemployment rate is 9.1% and rising. In 2007 when the democrats took over Congress, it was 4.4%. By January of 2010 (after a year of Obama), it stood at 10%, or an increase of 127% in three years. The most realistic actual figure today is about 18%. The average unemployment rate 1932-1940 was 19.1% during the Great Depression. The economic gurus appearing everywhere on TV are claiming that the country will not climb out of recession for many years, one figure being set at 25. Blaming Bush, who had to deal with democrats 2007-09, is now passé.
As it stands, a guy with an AGI of $260,000 has to cough up $91,000 to the federal government. Under Obama’s plan, he would have been liable for nearly $103,000. That’s enough to give anyone pause with respect to investing in a business. Obama appointed a number of tax-cheats to offices in his administration, an indication that gaming the system is in order – like soaking the rich in the name of fairness.
The top tax-rate 1951-63 was more than 90% (everything over $400,000) every year. The guy who earned $1,400,000 in 1953 could expect to pay at least $920,000 in income tax, though, of course, he would figure an adjusted gross income like everyone else. This is the situation many people in this country would like to see now, the better to have life-styles they can’t afford but expect someone else to fund, using the tax system.
Current tax rates per (head of) household (adjusted gross income in dollars): 0% up to 11,950; 15% up to 45,550; 25% up to 117,650; 28% up to 190,550; 33% up to 373,650; 35% over that amount. Median household income in 2008: 52,029, with income taxes at 13,007.25 less deductions. The guy who makes a million, if not 27 times as much, will still pay many times as much in taxes for the same protections and services as the head of that median household. That seems unreasonable, but the president wanted to make that guy even further subsidize those who intend to live above their means on his dime by taking 39.6% of his income. The guy who makes a million will probably cough up close to 59 times as much as the head of the household earning 45,000. Just crunch the numbers, taking into account all deductions/loopholes (designed by Congress) for all parties.
The top tax-rate was 70% in 1980 (Reagan election) for an AGI of 215,400 and over. By 1988, while the nation prospered and the military was greatly expanded, that rate went down to 28% (29,750 and over). Reagan and the democrat Congress lowered the taxes, while George H.W. Bush and a democrat Congress raised the top rate to 31% in 1991 and Clinton and a democrat Congress raised it again to a whopping 39.6% in 1993. George Bush and a republican Congress cut it back to where it is, while the social engineers (mostly nutcase democrats and fast-asleep republicans) told every head of household he/she could own a house whether or not it was affordable, thus being the absolute and only cause of the recession as the truth set in. To his credit, George Bush tried to fight this as far back as 2003-04.
The only relief from this mess, if any at all, will come in November 2012. Until then, the U.S. will keep printing money as the value of the dollar falls. The president will keep urging Brazil to drill, baby, drill, so the U.S. can buy its oil. The career politicians will not take the hard measures needed as China forges ahead in everything with the possible exception of military technology, and they can steal most of that.