Tag Archives: economy

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.

 

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.

Bruce Springsteen: Runs a fake farm to avoid paying taxes

Posted by Kate Dalzell

Singer and liberal activist Bruce Springsteen is well … a man of the people.

“He stands up for the little guy. A regular blue-collar Joe. A union man. A bona fide working-class hero.

And, when he’s not busy being all that… he’s a tax-dodging liberal hypocrite worth over $200 million who pretends to be a farmer to save hundreds of thousands of dollars on his property taxes that would have otherwise funded the welfare programs he pretends to care about.”

Frank Seabrook:
That’s right. Mr. “Union Man, Blue Collar” Springsteen is a total fraud, as I explain in my brand-new book Hollywood Hypocrites: The Devastating Truth About Obama’s Biggest Backers.

Recall that Springsteen actively campaigned for Obama in 2008, hosting free concerts that attracted tens of thousands of people in key battleground states. Springsteen’s song, “The Rising,” became a campaign staple for Obama’s speech venues and culminated in him playing for Obama’s Inauguration. And this time around, the White House plans on using the aging rocker’s new politically-motivated track, “We Take Care of Our Own,” to warm up crowds as the re-election bid kicks into high gear.
~snip

Bruce Springsteen pays over $138,000 a year in taxes for his three-acre home in Colts Neck, New Jersey. He owns another 200 adjoining acres. But because he has a part-time farmer come and grow a few tomatoes (organic, of course) and has horses, his tax bill on the remaining 200 acres is just $4,639 bucks. Do the math.  By being a fake farmer, the working-class zero Springsteen is making a mint by robbing New Jersey of the antipoverty program funds he says they desperately need.

“I think it is unfair to our other property taxpayers that if you are a fake farmer, and that you don’t legitimately farm, that you are getting a property tax break and forcing your neighbor to pick up your tab,” said state senator Jennifer Beck. “That was not the intent of the law. It’s a violation of the public trust.” When Fox 5 New York reporter Barbara Nevins Taylor asked a lawyer for the trust that owns Springsteen’s land to comment on the Boss’s lucrative fake-farming tax breaks, predictably, the lawyer had no comment.

The tax loophole comes from the New Jersey’s Farmland Assessment Act of 1964. Originally the provision was created to help preserve agriculture in New Jersey. To qualify for the tax break, landowners must own at least five acres of land and produce just $500 a year in goods in order to qualify. Anyone who can meet those minimum standards can reduce their farmland tax bills by an astounding 98 percent.

 

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).

John Fund discusses Voter fraud with Accuracy in Media’s Don Irvine (video)

The talking point from the left this year has been “There is no vote fraud”. Remember ACORN? Remember “Vote Scam” by Ken Collier about vote fraud in Florida? Remember how we now know that Obama got on the ballot illegally by fraud? And of course the Al Franken fiasco.

John Fund discusses Voter fraud with Accuracy in Media’s Don Irvine

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.

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.)”

McDonald’s: ObamaCare will cost us $420,000,000 per year in new costs…

So much for that McChicken only costing a dollar….

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

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

Wall Street Journal:

The Affordable Care Act could cost McDonald’s and its franchisees more than $400 million a year in additional health-care expenses, Chief Financial Officer Peter Bensen said on Monday.

McDonald’s estimates that each restaurant will incur between $10,000 and $30,000 in added annual costs, Bensen said in response to an analyst’s question on a conference call to discuss the fast-food giant’s second-quarter results, according to an unedited transcript of the call provided by FactSet. There are about 14,000 McDonald’s restaurants in the U.S., meaning McDonald’s expects the total cost to the company and its franchisees to be in the range of $140 million to $420 million. McDonald’s owns about 11% of its U.S. restaurants, while the rest are franchised.

Bensen added that the wide range is due to a number of variables, including the number of employees per restaurant and how many are full-time workers. Spokeswomen for McDonald’s added that the final cost will also depend on what percentage of its eligible employees elect to accept health insurance from the chain, as well as any changes McDonald’s might make to its health-care plan. McDonald’s worked with its franchisees to analyze and estimate the potential costs, the spokeswomen said, which could be mitigated by higher menu prices.

Companies have moved ahead with planning for economic and other consequences of the law since a Supreme Court ruling last month upheld the vast majority of President Barack Obama’s controversial health-care law, even as congressional Republicans and that party’s presidential nominee, Mitt Romney, vow to overturn it.

“Now that the Supreme Court has ruled,” Bensen said, “[we are] increasing our conversations and disclosures with franchisees” to educate them about the potential changes and how to minimize their impact.

To put the cost per restaurant into perspective, Bensen noted on the call that the commodity-costs increases it experienced in 2011, for example, added more than $30,000 in overhead to each restaurant that year.

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.

CBO: Obama Wrong About Wealthy Paying Less

Since the Bush tax cuts “the rich” have been paying a larger share of the federal tax pie, but that pie has been shrinking as more wealth flees the country, more of the wealthy expatriate, more jobs leave the country, and more people drop out of the workforce.

[Editor’s Note – The raw CBO report can be found HERE]

Wall Street Journal:

President Barack Obama says someone has to pay more taxes if the U.S. is to tame its budget deficit and provide the government he thinks the nation needs. He proposes that the best-off Americans pay more. It’s only fair, he says.

“There are a lot of wealthy, successful Americans who agree with me because they want to give something back,” he said in a speech in Roanoke, Va., that set off dueling campaign ads. “Look, if you’ve been successful, you didn’t get there on your own.”

His Republican opponent, Mitt Romney, counters that the deficit can be reduced without raising taxes if Washington is tough on spending. He thinks raising taxes on the best-off would be unwise and unfair. “President Obama attacks success, and therefore under President Obama we have less success,” he said.

The contrasting comments underscore philosophical differences over the roles of the individual and society. But the most tangible disagreement is on taxing the rich.

“Who’s right: Obama or Romney? Both. Or neither,” says Joseph Thorndike, a tax historian. “When it comes to taxing the rich, there is no single, objectively correct answer. You can talk all you want about asking rich people to pay ‘their fair’ share,’ but don’t kid yourself. You’re just trying to turn private opinions into public policy.”

“I’m struck” he adds, “how the facts can be used selectively by either side.”

Academic tomes have been written about revamping the tax code so it finances the government while doing less damage to economic growth. But, countless congressional hearings later, the U.S. is no closer to a consensus on “fair share” than when the income tax was born 100 years ago.

The top marginal income-tax rate, the most visible metric, has gone from 7% in 1913 to 92% in the 1950s to 28% with the Tax Reform Act of 1986 to 39.6% in the Clinton years to today’s 35%. Mr. Obama wants to raise that; Mr. Romney wants to cut it while eliminating loopholes and deductions to make up the lost revenue.

Over the past three decades, Americans—including most of the rich—have paid less of their incomes to Washington. Top earners have received more of the income and paid more of the taxes; a growing number at the bottom have paid less or, in some cases, nothing.

Whether that is fair is a question of politics and values. Facts can inform the debate. Here are a few salient ones:

The top 5%, top 1% and top 0.1% of Americans have been getting a bigger slice of all the income and paying a growing share of federal taxes.

To measure the tax burden over time, Congressional Budget Office economists look beyond income-tax returns. They add federal income, payroll, excise and corporate taxes and calculate them as a percentage of income, broadly defined to include wages plus the value of government- and employer-provided benefits.

From Ronald Reagan to Barack Obama, the tax code has been tweaked and the economy has had its ups and downs, and the share of federal taxes paid by the top 5% and the top 1% has risen faster than their share of income:

In the 1980s, the top 5% averaged 22.6% of income and paid 28.5% of taxes.

In the 1990s, the top 5% averaged 25.3% of income and paid 34.3% of taxes

In the 2000s, the top 5% averaged 28.4% of the income and paid 40.3% of the taxes.

That doesn’t mean that the best-off are living on less. The top 1% averaged income of $1,530,773 this year (up $174,083 from 2004, when the data series begins) and paid federal taxes of all sorts of $422,915 (up $20,704 from 2004), according to estimates by the Tax Policy Center, a number-crunching joint venture of the Brookings Institution and Urban Institute.

Average tax rates have come down for everyone. On average, the tax bite on the rich is bigger—except for those whose income mainly comes from capital gains and dividends.

Across the earnings spectrum, Americans’ share of income that went to taxes fell in the 1980s, rose in the 1990s and fell again in the 2000s. This year, taxes and other receipts will cover only two-thirds of federal spending; the government will borrow the rest.

For those in the top 1%, whose incomes are more volatile than others, the average tax bite in 2007 was 28.9%, below the 1995 Clinton-era peak (35.3%) but higher than the 1986 Reagan-era trough (24.6%.)

Most Americans, though, have seen the share of their income that goes to taxes fall steadily. For earners in the middle, the tax bite eased from 18.9% in 1979 to 16.6% in 1999 to 14% in 2007 even before the recession and recession-fighting tax cuts.

The rich do, on average, pay more of their income in taxes than the middle class. So do the super-rich—on average.

The annual Internal Revenue Service scorecard of the top 400 taxpayers—who reported average incomes of $200 million—showed they paid 19.9% of their adjusted gross income in federal income taxes in 2009, well above the rate paid by the middle class. Those with incomes between $100,000 and $200,000, for instance, paid about 12%. (The IRS tally for the top 400 counts only income reported on tax returns, and only income taxes. Neither the IRS nor CBO calculates figures for the 1% using the broader definitions of income and taxes.)

The fortunate 400, though, paid a lower rate than the not-quite-so-rich, those with incomes over $1.5 million. The main reason: More than 60% of the top 400’s income was from dividends or capital gains in 2009, and those are taxed at a top rate of 15%, lower than many pay on wages.

The share of taxes paid by the bottom 40% of the population has been shrinking along with their share of income.

In 2007, the bottom 40% received 14.9% of the income (including the value of government benefits) and paid 5.9% of all federal taxes. In 1979, they had a bigger share (17.4%) of the income and paid more (9.5%) of the taxes.

2,362 Millionaires Received Unemployment Benefits

When “government” is the answer all to often it was a stupid question. Case in point this idiotic federal mandate:

CNS News:

There were 2,362 people who earned a million dollars or more in taxable income in 2009 and who also received federal unemployment benefits that year, according to a report by the Congressional Research Service.

In fact, these millionaires collectively raked in more than $20 million in unemployment benefits.

The Congressional Research Service report–Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”)was published on Aug. 2 and was based on the most recent data available from the Internal Revenue Service.

“Among tax filers with AGI [Adjusted Gross Income] of $1 million or more, 2,840 reported receipt of unemployment benefit income in 2008 and 2,362 tax filers reported receipt of unemployment benefit income in 2009,” the CRS reported.

The CRS reported that millionaires received $20.8 million in federal unemployment benefits in 2009, up from $18.6 million in 2008. That averages out to $8,806 in unemployment benefits per millionaire.

Unemployment insurance is a joint federal-state program and is funded by a payroll tax assessed against all workers. In the four years preceding 2012, according to the Tax Foundation, the unemployment insurance system was in the red. “Between 2008 and 2011, $174 billion was paid in unemployment taxes while $450 billion was paid out in benefits, a gap of $276 billion,” the Tax Foundation said.

Department of Labor regulations require that unemployment benefits must be paid to all unemployed workers regardless of their income.

“This requirement is based upon a 1964 U.S. Department of Laobr (DOL) decision that precludes states from means-testing to determine UC [unemployment compensation] eligibility,” the CRS said in its report.

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.

Obama Gives AARP $52 Million – And It Wasn’t Because He Loves Seniors….

AARP, whose board of directors has been hijacked by liberal political activists threw seniors under the bus when they supported ObamaCare with its bureaucrats that can deny seniors access to care (after Obamacare is fully implemented) and its half a TRILLION dollars in Medicare cuts. President Obama of course sought to enrich those who run AARP with some giveaways [from my old college blog – yes we were paying attention even then]:

AARP Making Mega-Millions on Corrupt ObamaCare “Easter Egg” – LINK

Corrupt AARP Health Care Deal Puts Seniors at Risk – LINK

AARP and Many Others Hiking Premiums or Dumping Coverage Because of ObamaCare – LINK

 

Now this. Big Government:

Today, the Department of Labor proudly announced that it had given away some $260 million in grants to various organizations through its Senior Community Service Employment Program (SCSEP). SCSEP is “a community service and work-based training program for older workers – providing subsidized, part-time, community service training for unemployed, low-income persons 55 or older who have poor employment prospects.”

Sounds great. Except the biggest recipients of SCSEP cash are Democratic political surrogates.

The largest single recipient of general SCSEP funds was – you guessed it – the American Association of Retired Persons Foundation, which pulled down almost $52 million. The AARP Foundation is a wing of the AARP, which stands to make some $1 billion over the next decade thanks to Obamacare and spends hundreds of millions of dollars to push liberal policies. The head of the AARP contributed some $8,900 to Obama’s campaign committees in 2008.

Coincidentally, the DOL is handing $6.6 million to the National Urban League – and it just so happens that President Obama spoke at the NUL this week in an attempt to reinvigorate his black support base.

The goodies keep on coming for President Obama’s friends. And that’s his entire campaign strategy: buy off specific constituency with taxpayer cash, and then let them push him to victory.

Senator Hatch: Obama Holding Country Hostage With Tax Plan

The GOP needs to get the message out that the tax the Democrats wish to raise does not have much impact on millionaires and billionaires, because most of their income is defined as “unearned”; rather it will impact the small businesses who actually employ people the most.

Remember that new taxes that are designed to soak the rich for some reason just don’t. Instead they impact the productive middle class and risk takers which benefits large, well connected mega-corps.

Newsmax:

President Barack Obama blamed Republicans on Saturday for a stalemate that could increase taxes on Americans next year while a leading Senate Republican cast Obama and his Democratic Party as obstructionists who want to place the tax burden on businesses during an economic slowdown.

In his weekly radio and online address, Obama pressed the Republican-controlled House to extend Bush-era tax cuts for households making $250,000 or less while letting lower rates on wealthier taxpayers expire and go up. The Democratic-controlled Senate narrowly passed such a measure earlier in the week, but the House is not expected to follow suit.

“Instead of doing what’s right for middle-class families and small-business owners, Republicans in Congress are holding these tax cuts hostage until we extend tax cuts for the wealthiest Americans,” Obama said.

Responding on behalf of the congressional GOP, Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, said Obama’s plan would do more harm to the economy and criticized him with almost identical language. He called for extending current tax rates for all taxpayers and spending 2013 overhauling and simplifying the tax code.

“Raising taxes as our economy continues to struggle is not a solution, and the majority of Americans and businesses understand that,” Hatch said. “The president and his Washington allies need to stop holding America’s economy hostage in order to raise taxes on those trying to lead our economic recovery.”