Tag Archives: business

New Tax Hikes Motivating Small Businesses to Sell

Going Galt.

Wall Street Journal:

A looming increase in the capital-gains tax rate next year is fueling sales of some privately-held businesses.

Many business owners—mostly founders who could gain a lot from a sale—are looking to close deals before next year, when the maximum tax on investment income is scheduled to rise from 15% currently to at least 23.8% on most capital gains, at least for higher-income households. Many sellers intend to convert their equity into retirement funds or just start anew.

“It just made more sense for me to take my chips off the table and go do something else,” said Bert Wolf, 60 years old, who has an agreement to sell his compressed-gas business, Acetylene Oxygen Co. of Harlingen, Tex., before year-end.

Mr. Wolf added that if he waited until after the tax increase to sell, he would have to expand the business at the current rate “for at least 3 or 4 more years to achieve the same after-tax sales dollar.” He is profiting on the sale of his business to PraxairInc., a public company.

“There’s a kind of a panic on to get things done,” said Beatrice Mitchell, co-founder of Sperry, Mitchell & Co. Inc., a New York investment bank that is advising Mr. Wolf on the sale.

The top tax rate will go up at year-end by at least 3.8 percentage points because of a provision in President Barack Obama’s health-care overhaul law. But that will be added onto a top rate that will depend on negotiations between Mr. Obama and Congress after the November election, when they are expected to seek a deal on numerous tax and spending measures.

Mr. Obama and Congress agreed in late 2010 to extend the current 15% capital-gains tax rate through this year. Absent further action, the top capital gains tax rate will rise to 20% on Jan. 1. After adding the extra charge from the health-care law for higher-income households, the maximum tax on investment income would be 23.8%. When combined with the scheduled expiration of some other tax breaks for high earners, the maximum tax on investment income would be as high as 25%.

Many Republican lawmakers want to extend the 15% rate. If they prevail, the maximum tax likely would rise to at least 18.8% because of the health-care charge.

Mr. Obama proposes to let the top capital gains tax rate rise to 20% on income above $250,000 for couples, but hold it to 15% on income below that threshold.

But here is the rub, most “couples” that make 250k aren’t the one’s who pay these taxes, small businesses and investors do. It directly chases jobs and investment out of the country.

For Every $1 Added to the Economy, Obama Added More Than $3 in Debt

This is about as good an example of what is known as “Okun’s Leaky Bucket”. Money that is spent by government does not have nearly the same effect or “velocity of money” as private investment or consumer spending does.

When government spends money it does so for reason of politics and corruption. Government does not create wealth it just spreads money around either to the unproductive or least efficient. While defense is a critical role of government, does anyone actually believe that Pentagon spending is efficient?

When the private sector spends money it is done in order to create something, repair something, or engage in a crucial economic need for someone, so by its nature it is very efficient. Dollars tend to go where they are most needed.

It is as if the money government has to spend is put in a bucket and much of it seemingly vanishes from the economy.

Via Fox Nation:

Since Obama has taken office ….
[through Q2 2012 for comparative purposes]

For every $1 added to the economy, we’ve added more than $3 in debt added $5.23 trillion in debt vs. $1.68 trillion to the economy 50% increase in debt vs. 12% increase in economic output

Total Public Debt:

$10,626T [Jan 20, 2009]
$15,856T [Jun 30, 2012]

–> $5.23 trillion increase in debt

GDP

$13,923T [Q1 2009]
$15,606T [Q2 2012]

–> $1.68 trillion increase in GDP

 

In the mean time the Federal Reserve is printing money nonstop and is tanking the dollar:

The dollar hung near seven-month lows against major currencies on Monday after last week’s Federal Reserve announcement of aggressive easing dampened the outlook for the U.S. currency.

The U.S. dollar could recover somewhat in the near term, as some traders said the greenback’s 3 percent drop so far this month may have been overdone. That slide took the euro to a four-month high against the dollar and the yen to a seven-month high.

The Fed on Thursday said it would pump $40 billion into the economy each month until unemployment falls significantly. A week earlier the European Central Bank unveiled a new bond-buying program to address the region’s debt crisis.

“The outlook for the dollar has definitely been damaged by the policy actions by both central banks — the Fed and the ECB,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

 

Editor: Obamacare has caused my insurance premium to go up by 12 times

Political Arena Editor Chuck Norton:

I was just notified that if I want to keep my current health insurance with Blue Cross/Blue Shield my premiums will go up by a factor of 12.27. So much for being able to keep my current insurance.

I have a special needs child. If any readers have wondered why this web site has been so outspoken about Obamacare it is because everything that we have warned about it has the virtue of being true.

Repeal ObamaCare.

ObamaCare redefines full time job as 30 hours a week!

That will fix that pesky unemployment number!

This is pathetic.

CNS News:

A little-known section in the Obamacare health reform law defines “full-time” work as averaging only 30 hours per week, a definition that will affect some employers who utilize part-time workers to trim the cost of complying with the Obamacare rule that says businesses with 50 or more workers must provide health insurance or pay a fine.

“The term ‘full-time employee’ means, with respect to any month, an employee who is employed on average at least 30 hours of service per week,” section 1513 of the law reads.  (Scroll down to section 4, paragraph A.)

That section, known as the employer mandate, requires any business with 50 or more full-time employees to provide at least the minimum level of government-defined health coverage to those employees.

In other words, a business must provide insurance if it has 50 or more employees working an average of just 30 hours per week, which is 10 hours per week fewer than the traditional 40-hour work week.

If an employer has 50 or more “full-time employees” and does not offer health insurance, it must pay a penalty per employee for each month it does not offer coverage.

The obscure provision recently reemerged in regulations issued by the IRS for how employers must account for which workers are full-time and which ones are not.

Under these standards, published in September, employers can choose a “look-back” period of between 3 and 12 months to measure if an employee has worked an average of 30 hours per week.

If an employee has worked 30 hours per week during this time, the person would count as a full-time employee for at least the next six months, regardless of how much they work, thus preventing employers from cutting hours to avoid the mandate.

In other words, an employer calculates the hours an employee works during at least a three-month period, determining if they employee has worked 30 hours or more per week on average.

If the employee meets the 30-hour threshold, they are counted as full-time for at least six months. If the employer has at least 50 such employees, he must provide them with health insurance or pay a fine.

The IRS regulations do not apply to seasonal or temporary workers, only to regular employees.

California official who under-reported unemployment stats is an Obama campaign donor

The games going on are just so…so… Chicago.

That 7.8% number will be revised way up after the election. Read the story at the Daily Caller HERE.

CNN Money:

U.S. unemployment fell to 7.8% in September. But that doesn’t mean the other 92.2% of adults are working.

The unemployment rate only measures people who have searched for jobs in the last four weeks, while millions of other out-of-work Americans aren’t included.

Continue reading HERE.

10 Leave the Labor Force for Every One added

This situation makes the U3 unemployment number look better than the actual unemployment problem is. Using the U3 number those who get part time jobs and those who give up on looking for gainful employment are not counted among the unemployed.

Weekly Standard:

“For Every 1 Person Added To Labor Force Since January 2009,” the chart reads, “10 People Added To Those Not In Labor Force.”

That is, in nearly the four years, since President Obama took office in January 2009, only 827,000 people have been added to the labor force, while during that same time period, 8,208,000 have been added to those not in the labor force.

The chart relies on data available from the federal Bureau of Labor Statistics.

“The numbers represented in the chart are a measure of growth from January 2009 through September 2012,” the Republican side of the Senate Budget Committee explains. “The data is sourced from the Bureau of Labor Statistics’ Current Population Survey, a sample of 60,000 households conducted by personal and telephone interviews. Basic labor force data are gathered monthly. The labor force consists of all people aged 16 and over either employed or actively seeking work. It does not include discouraged workers, people who have retired, or those on welfare or disability who are no longer looking for work. The ‘not in the labor force’ group is defined as the total civilian non-institutional population minus the labor force.”

Since January 2009, the labor force has grown by 0.54 percent, or 827,000 people (from 154,236,000 to 155,063,000). Those not in the labor force grew by 10.2 percent during the same period (8,208,000 people), from 80,502,000 to 88,710,000. In other words, for every one person added to the labor force of the United States since January 2009, the size of the U.S. population not in the labor force grew by 10 people.

How AARP Made $2.8 Billion By Supporting Obama’s Cuts to Medicare

We have reported on this before.

Forbes:

As you know if you’ve been reading this blog, Obamacare cuts $716 billion from Medicare in order to pay for its $1.9 trillion expansion of coverage to low-income Americans. It’s one of the reasons why seniors are more opposed to the new health law than any other age group. So why is it that the group that purports to speak for seniors, the American Association of Retired Persons, so strongly supports a law that most seniors oppose? According to an explosive new report from Sen. Jim DeMint (R., S.C.), it’s because those very same Medicare cuts will give the AARP a windfall of $1 billion in insurance profits, and preserve another $1.8 billion that AARP already generates from its business interests.

Here’s how it works. AARP isn’t your every-day citizens’ advocacy group. The AARP is also one of the largest private health insurers in America. In 2011, the AARP generated $458 million in royalty fees from so-called “Medigap” plans, nearly twice the $266 million the lobby receives in membership dues.

Medigap plans are private insurance plans that seniors buy to cover the things that traditional, government-run Medicare doesn’t, like catastrophic coverage. Medigap plans also help seniors eliminate the co-pays and deductibles that are designed to restrain wasteful Medicare spending.

AARP blocked Medigap reforms, saving the group $1.8 billion

Adding catastrophic coverage to Medicare, while restraining the ability of Medigap plans to waste money, is a key to Medicare reform, one that has been a big part of bipartisan plans in the past. According to the Kaiser Family Foundation, the Medigap reforms that AARP blocked would have saved the average senior as much as $415 in premiums per year.

But the AARP aggressively, and successfully, lobbied to keep Medigap reforms out of Obamacare, because AARP receives a 4.95 percent royalty on every dollar that seniors spend on its Medigap plans. Reform, DeMint estimates, would have cost AARP $1.8 billion over ten years.

Cuts to Medicare Advantage could earn AARP over $1 billion

Not only did AARP succeed in getting Democrats to balk at Medigap reform. Obamacare’s cuts to Medicare Advantage will drive many seniors out of that program, and into traditional government-run Medicare, which will increase the number of people who need Medigap insurance.

That means more royalty profits for the AARP. Reps. Wally Herger (R., Calif.) and Dave Reichert (R., Wash.) estimated that the change “could result in a windfall for AARP that exceeds over $1 billion during the next ten years.”

AARP Medigap plans exempted from Obamacare’s insurance mandates

It gets worse. AARP Medigap plans are exempted from most of Obamacare’s best-known insurance mandates. AARP Medigap plans are exempted from the ban that requires insurers to take all comers, regardless of pre-existing conditions. The plans are exempted from the $500,000 cap on insurance industry executive compensation; top AARP executives currently make more than $1 million. AARP plans are exempt from the premium tax levied on other private insurers. IPAB, Medicare’s rationing board, is explicitly barred from altering Medicare’s cost-sharing provisions, provisions that govern the existence of Medigap plans.

And AARP Medigap plans are allowed to have twice the administrative costs that other private insurers are allowed under Obamacare’s medical loss ratio regulations. This last point is key, because AARP’s 4.95 percent royalty is a significant administrative cost.

Democrats routinely excoriate private insurers for supposedly putting profits above people. “No American should ever spend their golden years at the mercy of insurance companies,” President Obama told the AARP yesterday. But the typical private insurer gets by on a profit margin of about 5 to 6 percent. AARP’s 4.95 percent royalty, on the other hand, doesn’t do anything to make a health plan operate more smoothly: it’s just pure profit for AARP.

Romney Pays 57.9% in Charity Contributions & Taxes

Almost 60% of his income goes to charity and government. Democrats went on for weeks that they wanted to see the returns with some of them accusing him of being a tax cheat and a felon…. well there you go.

Washington Examiner:

With President Obama expected to use his second-chance debate this week to portray Mitt Romney as an uncaring rich guy, a new analysis of the GOP candidate’s wealth shows that the millionaire was so generous that he kept just 42 percent of his income.

Obama’s team has mocked the 14.1 percent tax rate that Romney is in as shirking his responsibility. But Charlottesville, Va.-based Marotta Wealth Management, which pens a widely-followed research blog, found that when Romney’s tax burden and charitable gifts are included, he paid out 57.9 percent of his income.

“Giving $2.3 million to charity certainly should not be the basis of any criticism,” said David Marotta. “It is money the Romney’s did not keep for themselves, so I am counting it with the money lost to taxes.”

His basic math for Romney’s 2011 return: $18.6 million in income minus $10.8 million in taxes and charity results in a net of $7.8 million, 42.1 percent of gross. Ditto for 2010, said Marotta.

Federal News Service Edits Debate Trascript to Help Biden….and Gets Caught…

…by Breitbart News:

Yes, Virginia, there is something fishy about media coverage of the debates, but it’s deeper than you think. As was reported here on Friday, the New York Times elided Paul Ryan’s terrific line “And we will not blame others for the next four years” in their “complete” transcript of the vice-presidential debate.

Guess who else cut the line out of their transcript? National Public Radio (NPR).  And here’s where it gets truly nefarious; the New York Times, NPR, the Chicago Sun Times and other news outlets used the same news source for the transcript: the Federal News Service (FNS). How many media outlets did the FNS use to mislead readers around the nation?

The Federal News Service was bought in 2010 by the Dolan Company, which published business journals, court and commercial newspapers and other publications, and then bought FNS, which, among other things, publishes transcripts of events like the debates.

Would a supposedly reputable company like FNS try to twist the truth in order to help one political party? You decide.

The CEO of the Dolan Company is James P. Dolan. Here is a list of his political contributions for 2009- 2010.

2009:

$10,000 for the Follow the North Star Fund, a Minnesota Democratic PAC

$2400 for Tim Walz for Congress. Walz is a Democrat.

2010:

$10,000 Follow the North Star Fund

$5000 Minnesota Democratic Farmer Labor Party

$2400 Friends for Harry Reid

$1400 Tim Walz for Congress

$1000 Klobachar for Minnesota. Klobachar is a Democrat.

$1000 Giffords for Congress. Giffords is a Democrat.

When Dolan bought FNS in 2010, he uttered these deathless words:

“Fed News plays an important role in public affairs, reporting exactly what was said, rather than official transcripts that often show only what was supposed to have been said.”

Why is it hard to believe him now?

UPDATE: The Federal news Service has corrected itself, but few of the outlets have, including the New York Times. The damage has been done.

79% say all Americans should pay income taxes

Fox News:

A large majority of likely voters believes all Americans should pay some federal income tax — even if it is as little as one percent of what they make.

Seventy-nine percent say everyone should pay something, according to a Fox News poll released Thursday.  That includes 85 percent of Republicans, 83 percent of independents and 71 percent of Democrats.

According to the IRS, last year approximately 41 percent of tax filers did not pay federal income tax.  The Tax Policy Center estimates that will increase to 46 percent this year.

Most voters (73 percent) are at least somewhat familiar with the widely-broadcast videotape of Republican presidential nominee Mitt Romney talking about “47 percent of Americans” and the number of people paying no federal income tax.  Romney also talks about his concern that the country is becoming an entitlement society and that many are too dependent on government.  Journalists and pundits speculated the tape would damage Romney’s campaign.  Yet a 63-percent majority thinks the substance of Romney’s comment about dependence on government is mostly (36 percent) or somewhat true (27 percent).

Three out of four voters believes the “average American” is at least somewhat dependent on government (76 percent), while less than a third says they personally are (31 percent).

The poll also shows nearly half of voters — 46 percent — think the federal government is “trying to do too much” these days.  That’s more than twice as many as say it’s doing “too little” (22 percent).  Just over a quarter says the government is doing “about the right amount” (28 percent).

Household income drops to 16 year low (but look who got rich)

What’s wrong with that picture? All the stimulus, regulations, bailouts and other spending in the name of the poor and who gets rich?  Washington D.C. Tops List of Richest Cities.

Via Shadowstats:

household income shadowstats• Real Median Household Income Collapses to 16-Year Low;
• 2011 Income Below Levels of Late-1960s, Early-1970s
• Income Variance Hits Record High, Suggestive of Greater Financial and Economic Crises Ahead

 

Illinois Raises Business Taxes: Jimmy Johns Corporation Leaves the State

Wealth goes where it is treated well. It should be the first rule of economics. When a bunch of radicalized leftists in Illinois demonize you for daring to start a good business and create jobs why stay?

jimmy johns

News Gazette:

CHAMPAIGN – The founder of Jimmy John’s said he has applied for Florida residency and may recommend that his corporate headquarters move out-of-state as a result of the Illinois tax increases enacted last week.

Jimmy John Liautaud told The News-Gazette on Tuesday that he is angry about the moves, which boosted the individual income tax from 3 percent to 5 percent and the corporate income tax from 7.3 percent to 9.5 percent.

“All they do is stick it to us,” he said, adding that the Legislature and governor showed “a clear lack of understanding.”

“I could absorb this and adapt, but it doesn’t feel good in my soul to make it happen,” Liautaud said.

Jimmy John’s, which has its corporate headquarters on Fox Drive in Champaign, has more than 1,000 sandwich shops nationwide, many of them franchise operations.

Champaign has been its corporate base, but Liautaud said it will not necessarily continue that way.

Liautaud said he has been contacted by “multiple pro-business states” that made him feel “wanted and important.”

“I enjoy being courted and the process,” he said.

Once he collects information on alternative sites, he will present it to the company’s board of directors and ask the board to decide.

As for himself, “my family and I are out of here,” he said.

Washington D.C. Tops List of Richest Cities….

What’s wrong with that picture? All the stimulus, regulations, bailouts and other spending in the name of the poor and who gets rich?

CBS Local:

LANHAM, Md. (CBSDC) — The Washington region is well off financially.

The D.C. metro area sits atop The Wall Street Journal’s list of America’s richest cities.

D.C. area residents have a median household income of $86,680, well above the national average of $50,502.

The large salaries may be attributable to the nearly 47 percent of workers who hold college degrees, making Washington one of the most highly educated areas in the country.

The list also shows more adults in the area were able to find employment during a down economic time.  Just 5.8 percent of the workforce were unemployed in 2011.

Only 8.3 percent of Washington homes are living below the poverty line — the fifth lowest ranking in the country.

McAllen, Tex. is the country’s poorest city with a median income of $31,077.

Overall, the list shows a decline in the national median income for a second straight year and a seven percent decline since 2007.

Spain Soaks the Rich with New Taxes: Tax Revenues Plummet

This happens every time. If you punish economic behavior you get less of it. Maryland and New York have lost revenue after they passed “soak the rich” tax schemes and the result is that those who migtht have paid the tax either fled the state, simply decided to do business elsewhere, or decided to not engage in any behavior that is taxable. Spain went down the same road. Class warfare rhetoric undermines confidence with job creators, risk takers, investors, and small businesses.

It is much like we said in our previous post, “Those with even the most rudimentary understanding of economics understands this and yet new university trained leftist academics keep causing these same problems and keep expecting a different result”.

Always remember, wealth goes where it is treated well.

CNBC:

Spain’s corporate tax take has tumbled by almost two thirds from pre-crisis levels as small businesses fail and a growing number of big corporations seek profits abroad to compensate for the prolonged downturn at home.

In 2010, 30 of Spain’s 35 blue chip companies had subsidiaries in territories considered tax havens, according to the latest report by Spain’s Observation Group for Social Corporate Responsibility.

The organization, which is partially subsidized by the Labor Ministry, put the number at 18 before Spain’s economic crisis began.

“Not only tax reasons justify this trend, but also the internationalization of Spanish groups and the search for new markets, especially in the context of the crisis seen in Spain,” said Josep Serrano, Senior Manager of Transfer Pricing & International Tax at Deloitte in Spain.

The use of subsidiaries in tax havens to reduce tax bills has been a rising global trend in recent decades, tax campaigners said.

Allen West dismantles CNBC “reporter” on jobs numbers (video)

Florida Republican Rep. Allen West defended his skepticism surrounding the September non-farm payrolls report in an interview on CNBC early this afternoon. The so called “objective reporter” from NBC’s cable channel,  Tyler Mathisen, got rather testy with Allen West and tried to interrupt him so he could not explain his point of view. West would have none of Mathisen’s nonsense. Mathisen is on the verge of becoming unhinged during much of the interview skin to a Chris  Mathews meltdown.

Here is the exchange:

MATHISEN: “You are alleging specifically that the president is engaging in a cover-up of the data. You are saying that the administration is actively manipulating that data. Correct?”

WEST: “Well, absolutely. Look at what happened with our GDP numbers. Fourth-quarter GDP numbers last year were 3 percent…”

MATHISEN: “Do you have any basis on which you say that? Do you have any basis on which you say that? Any source? Anyone that has come to you and said, ‘This is the case?’ I mean, do you realize how difficult it would be for someone to pull off that kind of conspiracy, given the number of people in the labor department, given the number of surveyors out there, one of whom would probably say, ‘Wait a minute! That’s not the right number!'”

WEST: “Well, if you would stop yelling in my ear and allow me to answer your questions, maybe we could get to the bottom of this. When you look at the GDP numbers — which have gone from 4.1 percent, then it went to 1.9 percent, then it was at 1.7 percent. It got revised down just about a month ago to 1.3 percent. We’ve got numbers that are all over the place. And we don’t understand the direction this economy is going. … I don’t see these numbers that people are talking about, and I don’t see how they can come back later in this month and say they’re revising the numbers from July and August. So I’m very questionable with what we do see out of this administration, because the numbers don’t add up.

70 Economic Facts Democrats Aren’t Fixing

Instead they are using these problems as “crisis opportunities” to increase government power and enrich their friends.

Economic Collapse Blog:

$3.59 – When Barack Obama entered the White House, the average price of a gallon of gasoline was $1.85.  Today, it is $3.59.

22 – It is hard to believe, but today the poverty rate for children living in the United States is a whopping 22 percent.

23 – According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities permanently shut down in the United States every single day during 2010.

30 – Back in 2007, about 10 percent of all unemployed Americans had been out of work for 52 weeks or longer.  Today, that number is above 30 percent.

32 – The amount of money that the federal government gives directly to Americans has increased by 32 percent since Barack Obama entered the White House.

35 – U.S. housing prices are now down a total of 35 percent from the peak of the housing bubble.

40 – The official U.S. unemployment rate has been above 8 percent for 40 months in a row.

42 – According to one survey, 42 percent of all American workers are currently living paycheck to paycheck.

48 – Shockingly, at this point 48 percent of all Americans are either considered to be “low income” or are living in poverty.

49 – Today, an astounding 49.1 percent of all Americans live in a home where at least one person receives benefits from the government.

53 – Last year, an astounding 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed.

60 – According to a recent Gallup poll, only 60 percent of all Americans say that they have enough money to live comfortably.

61 – At this point the Federal Reserve is essentially monetizing much of the U.S. national debt.  For example, the Federal Reserve bought up approximately 61 percent of all government debt issued by the U.S. Treasury Department during 2011.

63 – One recent survey found that 63 percent of all Americans believe that the U.S. economic model is broken.

71 – Today, 71 percent of all small business owners believe that the U.S. economy is still in a recession.

80 – Americans buy 80 percent of the pain pills sold on the entire globe each year.

81 – Credit card debt among Americans in the 25 to 34 year old age bracket has risen by 81 percent since 1989.

85 – 85 percent of all artificial Christmas trees are made in China.

86 – According to one survey, 86 percent of Americans workers in their sixties say that they will continue working past their 65th birthday.

90 – In the United States today, the wealthiest one percent of all Americans have a greater net worth than the bottom 90 percent combined.

93 – The United States now ranks 93rd in the world in income inequality.

95 – The middle class continues to shrink – 95 percent of the jobs lost during the last recession were middle class jobs.

107 – Each year, the average American must work 107 days just to make enough money to pay local, state and federal taxes.

350 – The average CEO now makes approximately 350 times as much as the average American worker makes.

400 – According to Forbes, the 400 wealthiest Americans have more wealth than the bottom 150 million Americans combined.

$500 – In some areas of Detroit, Michigan you can buy a three bedroom home for just $500.

627 – In 2010, China produced 627 million metric tons of steel.  The United States only produced 80 million metric tons of steel.

877 – 20,000 workers recently applied for just 877 jobs at a Hyundai plant in Montgomery, Alabama.

900 – Auto parts exports from China to the United States have increased by more than 900 percent since the year 2000.

$1580 – When Barack Obama first took office, an ounce of gold was going for about $850.  Today an ounce of gold costs more than $1580 an ounce.

1700 – Consumer debt in America has risen by a whopping 1700% since 1971.

2016 – It is being projected that the Chinese economy will be larger than the U.S. economy by the year 2016.

$4155 – The average American household spent a staggering $4,155 on gasoline during 2011.

$4300 – The amount by which real median household income has declined since Barack Obama entered the White House.

$6000 – If you can believe it, the median price of a home in Detroit is now just $6000.

$10,000 – According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.

49,000 – In 2011, our trade deficit with China was more than 49,000 times larger than it was back in 1985.

50,000 – The United States has lost an average of approximately 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.

56,000 – The United States has lost more than 56,000 manufacturing facilities since 2001.

$85,000 – According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

$175,587 – The Obama administration spent $175,587 to find out if cocaine causes Japanese quail to engage in sexually risky behavior.

$328,404 – Over the next 75 years, Medicare is facing unfunded liabilities of more than 38 trillion dollars.  That comes to $328,404 for each and every household in the United States.

$361,330 – This is what the average banker in New York City made in 2010.

440,00 – If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to totally pay it off.

500,000 – According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

2,000,000 – Family farms are being systematically wiped out of existence in the United States.  According to the U.S. Department of Agriculture, the number of farms in the United States has fallen from about 6.8 million in 1935 to only about 2 million today.

$2,000,000 – At this point, the U.S. national debt is rising by more than 2 million dollars every single minute.

2,600,000 – In 2010, 2.6 million more Americans fell into poverty.  That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.

5,400,000 – When Barack Obama first took office there were 2.7 million long-term unemployed Americans.  Today there are twice as many.

16,000,000 – It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

$20,000,000 – The amount of money the U.S. government was spending to create a version of Sesame Street for children in Pakistan.

25,000,000 – Today, approximately 25 million American adults are living with their parents.

40,000,000 – According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.

46,405,204 – The number of Americans currently on food stamps.  When Barack Obama first entered the White House there were only 32 million Americans on food stamps.

88,000,000 – Today there are more than 88 million working age Americans that are not employed and that are not looking for employment.  That is an all-time record high.

100,000,000 – Overall, there are more than 100 million working age Americans that do not currently have jobs.

$150,000,000 – This is approximately the amount of money that the Obama administration and the U.S. Congress are stealing from future generations of Americans every single hour.

$2,000,000,000 – The amount of money that JP Morgan has admitted that it will lose from derivatives trades gone bad.  Many analysts are convinced that the real number will actually end up being much higher.

$147,000,000,000 – In the U.S., medical costs related to obesity are estimated to be approximately 147 billion dollars a year.

295,500,000,000 – Our trade deficit with China in 2011 was $295.5 billion.  That was the largest trade deficit that one country has had with another country in the history of the planet.

$359,100,000,000 – During the first quarter of 2012, U.S. public debt rose by 359.1 billion dollars.  U.S. GDP only rose by 142.4 billion dollars.

$454,000,000,000 – During fiscal 2011, the U.S. government spent over 454 billion dollars just on interest on the national debt.

$1,000,000,000,000 – The total amount of student loan debt in the United States recently surpassed the one trillion dollar mark.

$1,170,000,000,000 – China now holds approximately 1.17 trillion dollars of U.S. government debt.  Yet the U.S. government continues to send them millions of dollars in foreign aid every year.

$1,600,000,000,000 – The amount that has been added to the U.S. national debt since the Republicans took control of the U.S. House of Representatives.  This is more than the first 97 Congresses added to the national debt combined.

$5,000,000,000,000 – The U.S. national debt has risen by more than 5 trillion dollars since the day that Barack Obama first took office.  In a little more than 3 years Obama has added more to the national debt than the first 41 presidents combined.

$5,000,000,000,000 – What the real U.S. budget deficit in 2011 would have been if the federal government had used generally accepted accounting principles.

$11,440,000,000,000 – The total amount of consumer debt in the United States.

$15,734,596,578,458.59 – The U.S. national debt as of June 7, 2012.

$200,000,000,000,000 – Today, the 9 largest banks in the United States have a total of more than 200 trillion dollars of exposure to derivatives.  When the derivatives market completely collapses there won’t be enough money in the entire world to fix it.

Over 100 Million Now Receiving Federal Welfare

Related:

CIS: 57% of illegal immigrant households on welfare – LINK

Welfare grew by 19% under Obama! Total Obama Stimulus Bills $2.5 TRILLION – LINK

5.4 Million Join Disability Rolls Under Obama – LINK

Real GDP Tanked at 1.7%. Food Stamps and Welfare at Record Levels – LINK

Food Stamp Spending Doubled Since 2008. Welfare Spending Nearing $1 Trillion a Year – LINK

 

 

The Weekly Standard:

“The federal government administers nearly 80 different overlapping federal means-tested welfare programs,” the Senate Budget Committee notes. However, the committee states, the figures used in the chart do not include those who are only benefiting from Social Security and/or Medicare.

Food stamps and Medicaid make up a large–and growing–chunk of the more than 100 million recipients. “Among the major means tested welfare programs, since 2000 Medicaid has increased from 34 million people to 54 million in 2011 and the Supplemental Nutrition Assistance Program (SNAP, or food stamps) from 17 million to 45 million in 2011,” says the Senate Budget Committee. “Spending on food stamps alone is projected to reach $800 billion over the next decade.”

The data come “from the U.S. Census’s Survey of Income and Program Participation shows that nearly 110,000 million individuals received a welfare benefit in 2011. (These figures do not include other means-tested benefits such as the Earned Income Tax Credit or the health insurance premium subsidies included in the President’s health care law. CBO estimates that the premium subsidies, scheduled to begin in 2014, will cover at least 25 million individuals by the end of the decade.)”

Papa John: I must raise pizza prices if ‘Obamacare’ survives

Cook Medical Scraps Plans to Expand Production in USA Because of ObamaCare Tax: Looking to Go Overseas – LINK

McDonald’s: ObamaCare will cost us $420,000,000 per year – LINK

John Schnatter

LA Times:

Get ready to pay more for your Papa John’s pizza if “Obamacare” goes into full effect … a whopping 15 to 20 cents more.

John Schnatter, chief executive of the pizza chain, is bashing President Obama’s healthcare reform law as a policy that will force the company to choose between its customers and its investors.

And if the Patient Protection and Affordable Care Act rolls out as planned in 2014, Schnatter’s strategy is “of course … to pass that cost on the consumer in order to protect our shareholders’ best interest,” he said in a recent conference call.

Schnatter estimates that the legislation will cost Papa John’s about 11 cents to 14 cents per pizza, which equates to 15 cents to 20 cents per order. An average delivery charge runs $1.75 to $2.50.

The National Restaurant Assn. has criticized the healthcare legislation for having a chilling effect on expansion and hiring in the industry, which tends to be labor-intensive and burdened with thin margins.

Chains such as White Castle and Burger King have predicted surging costs due to the new regulations, which require businesses with 50 or more full-time employees to offer healthcare to such workers and their dependents.

And ObamaCare is designed to make the cost of that insurance rise dramatically.

Sweden’s Conservative Economic Recovery Continues

Related: Sweden turns to Reagan’s economic reforms and it’s working – LINK

Matt Kibbe at Forbes:

Sweden Finance Minister Anders Borg
Sweden’s Finance Minister Anders Borg

With Most Of Europe Still On Its Back, Sweden Tries Policies That Actually Work.

While the rest of Europe and the United States have gone on massive spending sprees fueled by government borrowing and tax hikes, Sweden took a different approach. In the Spring 2012 Economic and Budget Policy Guidelines, the Swedish Government and its Finance Minister, Anders Borg, have laid out a plan that is focused on lowering taxes. Their rationale? “When individuals and families get to keep more their income, their independence and their opportunities to shape their own lives also increase.”

Borg also wants to lower the corporate tax rate as a way of meeting the government’s goal of “full employment”. The government has already cut property taxes and other luxury taxes on the rich to lure investors and entrepreneurs back to Sweden. The government has also slashed spending across the board, including on the welfare programs that used to be Sweden’s claim to fame. They’ve also installed caps on annual government expenditures: real and enforceable limits that the Swedes believe are pivotal to economic stability. They explain in their Policy Guidelines that “the expenditure ceiling is the Government’s most important tool for meeting the surplus.” Imagine that, a government that stays within its limits. So why didn’t Sweden hop on the stimulus bandwagon like the U.S. and much of Europe?

Anders Borg explains, “Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus… Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.” We have now seen that attempts at austerity within the Eurozone have met a similar fate: none of it was serious. As spending increases have been squandered, spending cuts have been a charade, failing to target the big government programs at the core of the debt crisis. So Anders Borg and the Swedish Government have undertaken an economic and budget plan that slashes taxes and (actually) caps government spending. If you told Paul Krugman and the rest of the Keynesians back at the onset of the financial crisis that Sweden’s finance minister was planning such action, they would have surely laughed in your face and cynically predicted doom and gloom for the Scandinavian nation. However, in reality, a place Keynesians seem to be unfamiliar with, it’s become clear that what Sweden is doing is working. And it’s working better than even Minister Borg expected.

Despite slow projected growth for 2012, Sweden is expecting annual GDP growth of over 3 percent starting next year, projected out through 2016 by which time their unemployment is expected to slide down to just about 5 percent. During this time the Swedish gross debt is expected to drop from 37.7 percent/GDP to 22.5 percent/GDP as a result of government surpluses. For comparison, US gross debt to GDP is well over 100 percent and climbing. All this success must be on the backs of the working class right? Wrong. Wages are slated to rise in Sweden by nearly 4 percent annually through 2016.

ObamaCare already increasing insurance premiums and eliminating insurance carriers.

We have been covering the ObamaCare law in detail here at Political Arena. If you want to get down to the details and the nitty-gritty of how ObamaCare is designed to price both insurance and care out of the hands of most private individuals a good place to start is at the Health Insurance Tips Blog. Please see their post HERE.