Americans Are Ready for Entitlement Reform, Politicians Aren't

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The United States is not like an individual or a family when it comes to budgets and spending in one very substantial way: it is a monetary sovereign nation. Congress has the sovereign authority to issue all the money it needs or wants. The United States has no need of a national debt.
Having a national debt is the biggest mistake our government has committed since slavery.
The national debt is a welfare program benefitting banks, bankers and Wall Street brokers, with eight out of every ten dollars in the national debt was created to pay the interest on the national debt. According to the US treasury Dept.’s web site, of the $9.9 Trillion increase in the national debt that accrued during the past twenty years, interest payments made up more than $8.0 trillion of the increase.
The privately-owned monetary and banking system, in addition to creating money by fiat and lending it to the government, has created enormous private sector debt using fractional reserve lending procedures that multiply the money in the economy. The total debt in the economy is now about $55.8Trillion. With an average interest estimated at 5%, the annual interest on such a debt is about $2.75 trillion. At that rate of interest the lenders will consume the entire money supply in fewer than twenty years.
Formalizing a debt-base monetary system in the late 1690s with the establishment of the Bank of England, changed the nature of slavery from a worker-owned system to a wage-based system where workers take care of their own needs as the masters simply control the currency. Every nation where the system has been adopted has suffered the same results, concentrating that nation’s wealth in the hands of a few bankers and corporations at the expense of the general public.
If the United States is to survive, it must exercise its sovereign authority by issuing all of the nation’s money and operating the banking system as a public utility.

Bill parks of MD 8:55PM March 23, 2011

N O P E...
http://www.craigsteiner.us/articles/16

Bill Hedges of MO 8:36AM March 20, 2011

“The tax cuts of the 1920s”
“Tax rates were slashed dramatically during the 1920s, dropping from over 70 percent to less than 25 percent. What happened? Personal income tax revenues increased substantially during the 1920s, despite the reduction in rates. Revenues rose from $719 million in 1921 to $1164 million in 1928, an increase of more than 61 percent.”
The Kennedy tax cuts”
“President Hoover dramatically increased tax rates in the 1930s and President Roosevelt compounded the damage by pushing marginal tax rates to more than 90 percent. Recognizing that high tax rates were hindering the economy, President Kennedy proposed across-the-board tax rate reductions that reduced the top tax rate from more than 90 percent down to 70 percent. What happened? Tax revenues climbed from $94 billion in 1961 to $153 billion in 1968, an increase of 62 percent (33 percent after adjusting for inflation).”
The Reagan tax cuts”
“Thanks to "bracket creep," the inflation of the 1970s pushed millions of taxpayers into higher tax brackets even though their inflation-adjusted incomes were not rising. To help offset this tax increase and also to improve incentives to work, save, and invest, President Reagan proposed shweeping tax rate reductions during the 1980s. What happened? Total tax revenues climbed by 99.4 percent during the 1980s, and the results are even more impressive when looking at what happened to personal income tax revenues. Once the economy received an unambiguous tax cut in January 1983, income tax revenues climbed dramatically, increasing by more than 54 percent by 1989 (28 percent after adjusting for inflation).’
“Harmful Spending & Complexity
Lower tax rates are important, but they are not the only critical issue. Both the level of government spending and where that money goes are very important. And even when looking only at tax policy, tax rates are just one piece of the puzzle. If certain types of income are subject to multiple layers of tax, as occurs in the current system, that problem cannot be solved by low rates. Similarly, a tax system with needless levels of complexity will impose heavy costs on the productive sector of the economy.”
http://www.heritage.org/research/reports/2003/08/the-historical-lessons-of-lower-tax-rates

Bill Hedges of MO 8:19AM March 20, 2011

“Since 1978, the U.S. has cut the highest marginal earned-income tax rate to 35% from 50%, the highest capital gains tax rate to 15% from about 50%, and the highest dividend tax rate to 15% from 70%. President Clinton cut the highest marginal tax rate on long-term capital gains from the sale of owner-occupied homes to 0% for almost all home owners. We’ve also cut just about every other income tax rate as well.”
“During this era of ubiquitous tax cuts, income tax receipts from the top 1% of income earners rose to 3.3% of GDP in 2007 (the latest year for which we have data) from 1.5% of GDP in 1978. Income tax receipts from the bottom 95% of income earners fell to 3.2% of GDP from 5.4% of GDP over the same time period. (See the nearby chart).”
http://cliftonchadwick.wordpress.com/2010/08/03/the-soak-the-rich-catch-22/
Well, CBO says rich paid more taxes with Bush tax cuts:
“According to the non-partisan Congressional Budget Office (CBO), the Bush tax cuts actually shifted the total tax burden farther toward the rich so that in 2000-2004, total income tax paid by the top 40% of income-earners grew by 4.6% to 99.1% of the total.”
http://www.americanthinker.com/2010/03/lying_about_bushs_tax_cuts.html

Bill Hedges of MO 8:16AM March 20, 2011

The entitlements bankrupting this country are the tax cuts to the rich (let''s means test those) and the out-of-control military spending (war profiteering). After trying to start endless optional wars, Cheney and Rumsfeld privatized military contractors to overcharge us for decades, draining our treasury dry.
Ms Cary is a liar. Taxes in the USA are at it lowest point in over fifty years.
This country has a revenue problem - too many people who don't want to pay taxes to support this country. It is a privilege to support this country, not to rip it off.
now we have Newt out there praising tax dodges, what a cowardly and greedy thing to say. I guess Newt looks up to Al Capone or Mickey Cohen as Republican models of citizenship, but the rest of us recognize crooks for what they are.
Social Security does not have anything to do with the deficit and its fully funded, flush with billions in trust accounts. Cary just supports the crooked politicians who want to raid Social Security - just like Reagan raided it in the 90s. Its theft to steal from Americans have paid into Social Security, but that's the kind of gimmicks Republicans are selling.
Don't believe this garbage.

Joe of GA 1:23AM March 19, 2011

Thank you M. Schaefer! Ha! I bet when Ms Cary bought her house it cost more than her annual salary vs Debt/GDP.
The things that I envy about China is their investment in the next generation of industrial and energy production. Where is our next Hoover Dam or Blue Ridge Parkway to keep our country from becoming obsolete? These were the great "investments" of the Depression.
Why can't we see beyond the end of our noses?
The government has stolen all the Social Security taxes; you know, that 15% income tax that workers and their employers pay, and the wealthy don't, to pay for adventures in Iraq. Now they say, well, we will just have to cut benefits. In other words we have just paid MORE taxes that anyone else for their proflagate spending on things that don't improve America or our competitivenes.
I am for spending on sustaining America and doing the equivalent of keeping our house is good repair.
I have a condo in a HOA with older people and they don't want to contribute to the reserves. This is the same short-sightedness as the tea baggers or whatever the call themselves.
They must have not faith in America's future; because they are willing to forfeit it.
No wonder they feel put upon when the richest in America do not pay their fair share and Congress has stolen their retirement funds. But know the real culprit and hold them to account!

MC Gamble of NC 11:51AM March 18, 2011

Mr Schaefer's comments were the best worded and factually on target than any I've seen in a long time. Unfortunately, the voters don't want facts, just the propaganda the special interests put out. The healthcare issue is a perfect example. Everyone knows our healthcare system is a cancer eating away at the wealth of the nation as it slowly takes a bigger and bigger bite every year, but hallelujah, don't give President Obama any credit for at least
trying to make a start on reform.. Obama care is a poor bill but at least it's a start. Let's take this present bill and improve it- not repeal it.

DL Bigbee of AL 11:52PM March 17, 2011

Means test SSI and Medicare - and just about any other government program you can think of.
Tax people who make over 250K an additional 7%. Yeah, yeah, yeah... I already know, the top 10% pay 70% percent of the taxes - not coincidentally they make 71% of the income and have accumulated nearly 80% of the nation's wealth. If we were playing Monopoly 80% of us would be big time losers.
I can already see the Libertarians foaming and frothing. Calm down. Let's look at this another way. Lets assume taxpayer #1 has a taxable income of $46000 - the average income. Now that person gets taxed by the Feds at about 25% leaving him $34,500. That gets you a small rental, a 10 year old car, a 3 day vacation in Death Valley (in the off season - hey, it's only 112 degrees) and lots of beans and rice. Maybe, if they're lucky, a movie and dinner at Denny's once a month. If you have a state income tax, make that a 15 year old car and a pizza and Netflix. He can't afford health insurance and his employer couldn't either.
Now, lets say taxpayer #2 earns 250,000 and we raise his taxes from 33% to 40%. He brings home, after taxes, $150,000 bucks. That buys him a really nice home in a good neighborhood, a new car every three years, theater and dining out weekly, a vacation in the Bahamas and steak or fresh seafood every night. He even has money left over for savings and investment.
If we could hog tie the spendthrift politicians then we could balance the budget rather quickly - maybe 5 years. - and the top 10% would still bring home plenty of loot and keep their 80% of America's wealth.
Now, if you think means testing for everyone and raising taxes on the top 3% of wage earners is somehow an onerous burden - go ahead cry me a river. Feel free to loose your venom and start spouting off about academic, dogmatic Libertarian philosophy and Ayn Rand's perfect, "survival of the fittest" society.
But, I won't be listening.

R.L. Schaefer of CA 7:48PM March 17, 2011