- On average across the country, Tax Freedom day in 2016, the day we stop working for al levels of government and start working for ourselves and our families, will fall on April 24th.
- This is 114 days into the year, about a third of the year we now work for the American political class and the government levels they so ineptly operate.
- This breaks down to working 46 days to pay our Federal, state, and local income taxes, 26 days to pay our payroll taxes, 15 days to pay sales and excise taxes, 11 days to pay our property taxes, 9 days to pay the corporate taxes,and 7 more days to pay other assorted government taxes.
- And understand that this is a national average, some high tax states such as NewYork and California likely have Tax Freedom Days that extend into May, the fifth month of a 12 month year.
- If you include the deficit spending of the Federal government, essentially taxes that have been delayed into the future, then the true Tax Freedom day is actually 16 days later or May 10.
- In 1900, the average American paid only 6% of their income in taxes compared to almost a third in 2016.
- To more fully illustrate how oppressive taxation is now in this country, the Tax Foundation points out that in 2016 the average American will spend more in taxes than they spend on housing, clothing and food COMBINED:
Besides the insult of taking so much or our wealth in the face of how much money our politicians and government waste, such a high tax burden severely impacts our personal freedoms. We have less money to start our own business. We have less money to send our kids to the schools we want them to attend. We have less money to help out our favorite charities. We have less money to live where we want. We have less money to live the lives we want to live despite working hard to get the wealth we end up giving to the government.
And as we have said many times before, it is not as if we have a lot to show for giving the political class almost a third of our annual earnings. Our roads, bridges, and tunnels are still falling apart. Our borders still leak. Our public schools still continue to not educate our kids. Our government retirement plans, Social Security and Medicare, are plummeting towards insolvency. Current political and government economic policies have resulted in anemic economic growth.
If giving government and the politicians that operate it one third of our earnings has failed, maybe we need to do the opposite, reduce taxation and reduce government’s size and wasteful spending habits. How much worse could it get? This country was formed under the banner, “Taxation without representation.” Today, taxation with representation is not much better.
3)The Dodd-Frank legislation passed early in the Obama administration was supposed to make sure that the Great Recession never occurred again. Besides being over 1,000 pages long, the regulations that have been written so far to support the law now total over 22,000 pages. It was this legislation that created the term, “too big to fail.” This means that big financial institutions and banks would never again be allowed to have such a big negative effect on the industry and the national economy that it would cause another recession and/or require the American taxpayer to bail them out.
Despite what its supporters of the law said at the time, it is pretty obvious from a number of perspectives that this law was doomed to failure from the start. First off, anything that is 22,000 pages long is way too unwieldy to be effective. No bank or government entity is going to efficiently, effectively or legally understand what is buried in 22,000 pages of government jibber jabber.
Second, if anything, today’s banks and financial institutions are bigger and riskier than they were ten years ago prior to the Great Recession. JPMorgan, Goldman Sachs, and others are not any smaller. Although they may have set aside more resources to cover a cash crunch, market crash, or other downturn, they still are too big to fail today.
This last assumption was recently voiced by Neel KashKari. Mr. Kashkari was the main driver and developer of the Federal government’s bank bailout program during the Great Recession and oversaw the infamous TARP program (Troubled Asset Relief Program) that fed taxpayer funds to the big financial institutions and banks. He is now the President of the Federal Reserve Bank in Minneapolis. Thus, Mr. Kashkari has some pretty impressive credentials when it comes to knowing what is going on in the financial industry today.
In a recent speech, he boldly stated that the country’s major financial institutions are still too big to fail. That in the next financial crisis, Dodd-Frank be damned, the American taxpayer will have to rescue these same financial institutions again despite 22,000 pages of useless regulations. His solution is much simpler than 22,000 pages of regulations: turn the too big to fail banks into smaller banks by breaking them up into smaller component pieces.
Then, if a new, smaller bank failed during an economic downturn, no big deal, no taxpayer bailout. Simple, elegant and not a chance of ever becoming reality, given how closely big banks and American politicians have become: favorable legislation and treatment for continual campaign donations.
Another day, another set of insanity from the political class. Ineffective financial reform legislation, as stated by an insider expert, despite much ado about nothing, the oppressive and tyrannical tax burden in America today, and Hillary’s lack of transparency, i.e. what is she hiding?
This is the last post in this month's continuing series of Political Class Insanity. This month has set a record in that we needed a whopping ten days to get through all of the nonsense, idiocy, wasteful spending, loss of freedom, and other fiascos from the American political class. Things are getting worse over time vs. getting better.
Maybe it is finally time to implement term limits, for lord knows allowing the same tired and corrupt politicians to stay in office year after year is not working. How much worse could it get if we got some new people in those chairs in Congress and the White House:
It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.
Please visit the following sites for freedom:
Term Limits Now: http://www.howmuchworsecoulditget.com