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OECD Fears Middle Class Civil Unrest Is Coming

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OECD Fears Middle Class Civil Unrest Is Coming

by Tyler Durden on 07/18/2014 14:49 -0400

This idea that we live in a world where government cares about us is just the biggest propaganda ever. Everyone one will only pursue their own self-interest.The OECD has interesting come out and warned that if governments are unable to stop the transfer of wealth to a small financial elite, the displeasure of the dispossessed middle class could easily turn and go against the prevailing governmental systems. The OECD has claimed to have discovered the existence of a veritable “lumpenproletariat” in the supposedly rich Germany. Even though the systems attempt to provide citizens with bread and circuses in the traditional Roman style to keep them quiet, such  tactics they warn may have now become obsolete after the ultimate circus is over – the World Cup.

The problem with all of these studies is the look at class warfare and not at the consumption of government. They do not follow the breadcrumbs. What if you take everything from the elites? Who will start businesses to create jobs? Who will be left to take as government pensions keep ticking away. In Germany, it has now surpassed 50% of the average persons labor goes to taxes.
 
There are a host of books coming out all about just taxing the rich more ignoring reducing the cost of government. The German bestseller “The plunder of the world” presents just another socialist agenda arguing that the rich get richer even in times of crisis, while the consequences of a crisis are always carried by the lower-income groups and the middle class. It fails to explain that the rich get richer from investment, not wage income. This is an argument to effective tax investment substantially to even out the disparity? But who then creates the jobs that produce anything? Is it that those who invest unfairly make money when the others pay too much in taxes and do not invest? Anyone who thinks that these books are real must be insane. If you think for one second raising the taxes on the rich will mean your taxes will decline – good luck. In Germany, Tax Freedom Day has passed the 50% and even in Canada it is now June 9, 2014. In the United States it is April 21st for 2014.

http://www.zerohedge.com/news/2014-07-18/oecd-fears-middle-class-civil-unrest-coming

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Here’s a Crazy Idea: What About Reforming Transportation Spending Instead of Hiking Taxes?

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Here’s a Crazy Idea: What About Reforming Transportation Spending Instead of Hiking Taxes?
Emily Goff / June 26, 2014

Americans know the drill. When Congress faces a gap between its spending wants and available money, it is quick to ask for more money, instead of fixing the spending side of the budget ledger.

This time it’s Senate Finance Committee chairman Ron Wyden, D-Ore., who has proposed a rag tag group of revenue provisions, including hiking taxes on heavy vehicle use, aimed at filling a hole in Washington’s Highway Trust Fund (HTF). Federal gas and diesel taxes deposited in to the HTF go to pay for road, bridge, transit, and other surface transportation projects in the states.

Yup, you got it: Wyden’s focusing on new ways to collect money – without even mentioning spending reforms.

Conservatives on the committee rightly grumbled at its total lack of spending cuts, and now the committee is going back to the drawing board to try and find more palatable reforms all around.

Wyden isn’t alone: Others in Congress have called for gas tax hikes or bailing out the fund with postal reform revenue. But few have proposed reforming spending out of the HTF. In other words, lawmakers by and large aren’t interested in, changing which programs are eligible for the federal gas and diesel taxes deposited into the HTF.

The HTF was set up to pay for the interstate highway system. That was largely completed decades ago, but past Congresses added a laundry list of newly eligible activities, such as subways, buses, metropolitan planning, bike and walking trails, sidewalks, landscaping, ferry boats and interpretive signage.. These are diversions, pure and simple. Their users, such as transit commuters, bicyclists, and pedestrians, pay nothing into the HTF but benefit from it. And money spent on landscaping and subways is spent at the expense of road and bridge improvement projects that would benefit the motorists and truckers who pay the fuel taxes.

Here’s an idea, Sen.Wyden: End these HTF diversions toparochial activities, which don’t reduce traffic congestion or enhance mobility for motorists. Doing this would free up billions of dollars annually for road and bridge projects which, according to theclaims of some special interests in Washington, are “crumbling.” These claims are exaggerated, but the point remains that the money would be available to make necessary improvements to aging parts of the system and expansions where demand exists.

While you’re at it, Mr. Chairman, how about proposing crucial regulatory reforms that would help the states stretch their transportation dollars further and reduce unnecessary project delays and cost overruns? Start by repealing the Davis-Bacon Act and eliminating duplication in onerous environmental review processes. The states, which are tired of the endless delays and unnecessarily high costs of building a road or a bridge, will thank you.

Wyden’s current proposal is reckless: It relies on 10 years of revenue to pay for six months of transportation spending. Additionally, this plan continues bailing out the HTF, violating the important ‘user pays, user benefits’ principle. That is, motorists pay the fuel taxes and should benefit, not be shortchanged.

Even aside from any merits of this particular proposal, Congress should avoid renewing highway legislation in the lame duck session of Congress. Lawmakers have a tendency to pass shoddy deals for taxpayers during such sessions.

If Congress had to live within the trust fund’s means, it would be forced to set priorities for what is truly a federal responsibility, instead of continuing to take the easy road of making everything a spending priority..

http://dailysignal.com/2014/06/26/heres-crazy-idea-transportation-spending-reforms-instead-hiking-taxes/?utm_source=facebook&utm_medium=social

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Are You Dumb Enough to Trade $10 Billion for $560 Million?

 

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Are You Dumb Enough to Trade $10 Billion for $560 Million?
Jun. 25 s 
By Irwin M. Fletcher | The Save Jersey Blog

Author’s Note: I’m not THAT dumb, Save Jerseyans.

Why do we ALWAYS have the same argument over a millionaires tax?

Scratch that, Save Jerseyans. Why do Democrats and newspaper editors, aka Harry & Lloyd, our friends from Dumb and Dumber, ALWAYS ignore the facts of this argument? I’m getting sick and tired of the facts staring them right in the face and then, instead of responding to logic and reason, they lie to our faces. When they say that people do not leave, that people do not flee a state when they institute a millionaires tax, grab a fire extinguisher, aim it at their pants and get ready to pull the pin.

Wealth flees, Save Jerseyans. Wealth flees. And here is what the FACTS tell us what happens when a state, any state, raises its millionaires tax.

In the first fiscal year they are enacted, taxes generally raise anywhere from 90 to 95% of the publicly estimated revenue to be raised. Sometimes it is more, sometimes it is less. This occurs for 3 main reasons: 1) They are usually retroactive for the current fiscal year, and since DeLoreans don’t come standard with flux capacitors, taxpayers can’t do much about avoiding taxes in June on income already earned 6 months ago in January; 2) Moving/fleeing doesn’t happen overnight. While millionaires have the resources to leave the state due to taxes, it takes some time. So while they cut through the red tape, their income stays and is taxed at the new higher rate; 3) The projections employed are usually the rosy best case scenario ones to make the TV sound bite better. $600 million sounds better than $500 million when you’re trying to close a budget gap. But the best case scenario is hardly ever the real case scenario.

It is also a fact that after the fiscal year of implementation, tax revenues come nowhere near projections. Nowhere near. The first years collections are a one-time windfall. Revenues fall drastically in year two. The funds that the millionaires tax was supposed to raise aren’t materializing. Not there. Year three, the gap between projected tax revenues and collected revenues is even bigger! Heck, sometimes it’s BELOW then where they started three years ago! States are collecting less income taxes than before their millionaires tax! By year four and year five, the tax revenue situation is so bad that Harry & Lloyd start up the same argument again.

– See more at: http://savejersey.com/2014/06/millionaire-tax-state-budget-analysis/#sthash.1Mv0P16u.dpuf

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U.S. Workers Face a Tax Burden of 31.3 Percent

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U.S. Workers Face a Tax Burden of 31.3 Percent

Average Worker Pays over $16,000 in Income and Payroll Taxes

Washington, DC (June 19, 2014)—U.S. wage earners face a 31.3 percent tax burden on pre-tax income according to the latest analysis from the nonpartisan Tax Foundation. Although this burden is high, the average across the 34 OECD countries is slightly higher, at 35.8 percent.

Using the latest data from the OECD, the report hones in on U.S. tax policy and explains the breakdown of the average U.S. worker’s tax burden, how it compares to other developed countries, and why workers, instead of employers, bear the weight of the tax burden.

An average wage earner’s tax burden is comprised of income and payroll taxes. Although a little more than half of a worker’s payroll tax burden is paid by his, he ultimately pays this tax through lower take-home pay.

While the revenues from these taxes pay for government programs, it is important to know what the cost of these programs are from the average worker’s perspective.

Key findings include:

The total tax burden faced by wage earners in the United States is 31.3 percent of their pre-tax earnings, paying $16,658 in taxes in 2013, with $8,196 in individual income taxes and $8,462 in payroll taxes.
In the absence of income and payroll taxes and the benefits they provide, the average worker would take home nearly $5,000 in additional annual income for a total of $53,223.
The total tax burden faced by average U.S. workers is the 26th highest in the OECD and below the 34-country average of 35.8 percent.
The average U.S. worker faces an above average income tax burden (15.4 percent vs. the OECD average of 13.3 percent) and a below average payroll tax burden (15.9 percent vs. the OECD average of 22.6 percent).
Many OECD countries have high payroll taxes, such as France, which places a payroll tax burden of 38.5 percent on average workers.
In some countries, over 50 percent of a workers total tax burden is paid by their employer.
Many countries in the OECD, including the United States, have special provisions for families with children that lower their overall tax burdens. 

“Although the United States and most OECD countries are known for having progressive tax systems that tax high-income earners more than low- or moderate-income earners, a large portion of the tax burden still falls on the average worker,” said Tax Foundation Economist Kyle Pomerleau.

“Even here in the United States, which has lower tax burdens than most other OECD countries, average workers end up paying nearly one-third of their income in taxes. It is true that governments in the OECD, especially European countries, provide more government programs. However, their workers end up paying a much higher price for them.”

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Trenton’s Broken Record

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Trenton’s Broken Record
Jun. 19  
By Joe Sinagra | The Save Jersey Blog

“This plan is not only a matter of fairness and responsibility with pension payments, it is really about the full range of government services and opportunities, including such things as property tax relief, college affordability, public schools, law enforcement, transportation and many more priority needs,” NJ Senate President Steve Sweeney said on Wednesday as he rolled out his counter-proposal to Governor Chris Christie’s budget. “We have to maintain the state’s commitment to all New Jersey residents by meeting all of our commitments. This is a fair and responsible plan that will help meet those needs as it restores balance to the budget in a fiscally responsible way.”

So in all the years and administrations prior to Christie being governor, the 154 tax increases, raising the state sales tax from 6% to 7%, a 4% corporate tax surcharge, a 25% increase in liquor taxes, increased taxes for the citizens of New Jersey by over $10 billion dollars, an increase in the Realty Transfer Tax of $62 million on the state level, another $22 million on the county level, along with another $8 million tax on the lottery. . . Senator Sweeney now suddenly believes we need a fair and responsible plan?

What happened to all of the revenue that was already collected?

Even the promised tax rebate disappeared. On average, property taxes went up 55 percent statewide from the prior seven years before Corzine and another 20 percent when Corzine took office, and Corzine left us a $2.2 billion shortfall that existed when Christie took office on Jan. 19, 2010.

And Senator Sweeney decides now is the time to meet the commitments of the residents? Why is it that more is never enough in this state?

– See more at: http://savejersey.com/2014/06/new-jersey-budget-sweeney/#sthash.VrJfTZ1d.dpuf

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Federal Tax Revenues Set Record Through May; Feds Still Running $436B Deficit

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Federal Tax Revenues Set Record Through May; Feds Still Running $436B Deficit
June 12, 2014 – 11:20 AM\
By Terence P. Jeffrey\

( CNSNews.com) – Federal tax revenues continue to run at a record pace (in inflation-adjusted dollars) in fiscal 2014, as the federal government’s total receipts for the fiscal year closed May at an unprecedented $1,934,919,000,000, according to the Monthly Treasury Statement.

Despite record revenue, the federal government still ran a deficit of $436.382 billion in the first eight months of the fiscal year, which began on Oct. 1, 2013 and will end on Sept. 30, 2014.

In the month of May alone, the federal government ran a deficit of $129.971 billion–bringing in $199.889 billion in revenue while spending $329.860 billion.

The White House Office of Management and Budget has estimated that in the full fiscal 2014, the federal government will collect $3.001721 trillion in taxes, spend $3.650526 trillion, running a deficit of $648.805 billion..

http://www.cnsnews.com/news/article/terence-p-jeffrey/federal-tax-revenues-set-record-through-may-feds-still-running-436b

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Obamacare Taxes: Next Filing Season Could Be “one of the most chaotic in years.”

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Obamacare Taxes: Next Filing Season Could Be “one of the most chaotic in years.”
Posted by John Kartch on Tuesday, June 10th, 2014, 10:25 AM 

Problems with a key component of Obamacare will lead to unpleasant surprises for Americans during the 2015 tax filing season, according to testimony from a top tax expert before the House Ways and Means subcommittees on Health and Oversight today.

“I am here today to tell you that the upcoming tax filing season has the potential to be one of the most chaotic in years,” said Ryan Ellis, an IRS Enrolled Agent and Tax Policy Director at Americans for Tax Reform.

According to the testimony:

“One of the key elements of the Affordable Care Act, popularly known as “Obamacare,” is the creation of advanceable tax credits for the purchase of exchange health insurance plans. 

Taxpayers applying for credit assistance must be evaluated by government entities ranging from the SSA to CMS to the IRS.  The goal is to have an educated estimate, based on the most immediately-available government documents (e.g. prior year tax returns, etc.), of the taxpayer’s probable income for the year–which in turn determines the size of the tax credit. 

In an effort to get this tax benefit out quickly, the estimated credit is advanced to the insurance company by the IRS, which applies it to customer premiums. 

This is an important point—the money has left the IRS’ hands up to over a year before the taxpayer actually calculates his final credit amount.  The insurance companies have collected it, and they are not required to pay it back. 

Press reports this month indicated that the government was having a hard time doing all this, with 1.2 million of the 6 million federal exchange applicants having to be asked for additional income verification information from CMS.   That is not surprising.   Applicants are asked to complete a detailed, confusing twelve-page application which asks for income, family size, etc.  It is rather like trying to fill out a 1040 on the fly.  Added to this is the lack of employer reporting requirements and the failure to complete the back-end of the web site. 

Inconsistencies–some of which are the result of failures of the healthcare.gov system, some of which are poor records from the government, and some of which are mistakes from the individual–are not surprising.  But they are a problem.  It is the middle of June, and many people have now been receiving inaccurate subsidies for six months.  To the public’s knowledge, not a single advanced tax credit has been adjusted this year.

So what happens if the flawed, confusing process results in a tax credit larger than what the law calls for?

A hypothetical example might help illustrate: a health exchange customer selects an Obamacare exchange plan.  The government estimates that this taxpayer will earn $30,000 this year, which makes her eligible for a $2000 tax credit.  This $2000 is paid to the taxpayer’s insurance company to help with premiums. 

The next spring, our customer/taxpayer is filling out her tax return.  Unfortunately, the government estimated the taxpayer earned too little and paid too large a credit.  She actually earned $40,000, and so only had a $1500 credit coming to her. 

Depending on the taxpayer’s income level and availability of verified affordable workplace insurance, she will have to pay back much or all of the $500 overage to the IRS.  This means skinnier refunds and maybe even liabilities, and it won’t be the taxpayer’s fault—it will be the government’s fault.

It is also inevitable that many people are receiving tax credits for which they are completely ineligible.  The firewall of the offer of employer sponsored insurance is a new concept — tax preparers will have difficulty figuring out how it works in operation. There is virtually no way to catch it on the front end — but come tax filing season, many people will end up owing thousands of dollars, and it will be a complete surprise.”

Read more: http://www.atr.org/obamacare-taxes-next-filing-season-could-be-one-most-chaotic-years#ixzz34GoCXtfu 

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This Graphic On People Moving Due to Taxes Is Essential Viewing For Every Politician In America

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This Graphic On People Moving Due to Taxes Is Essential Viewing For Every Politician In America

The question of whether taxes affect behavior has long been debated by economists and ignored by most politicians.

This graphic by How Money Walks answers the question. The sourcedata- from the IRS- shows the changes in each state’s total adjusted gross income of taxpayers who’ve moved either in or out.

The states with the highest income taxes have had a net loss in taxpayer AGI of $107 billion, and the the states with no income tax have had a net gain of $146 billion. In other words, there’s been an exodus from high tax states to those with no taxes. The ultimate voting right: with one’s feet.

http://www.ijreview.com/2014/05/142898-graphic-people-moving-due-taxes-essential-viewing-every-politician-america/

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The Ridgewood Taxpayers’ Association is looking to reactivate

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The Ridgewood Taxpayers’ Association is looking to reactivate

The Ridgewood Taxpayers’ Association is a non-profit corporation organized in the state of New Jersey in 1993 .

The purposes of the Ridgewood Taxpayers’ Association are as follows :

*To monitor and analyze of the Village and Board of Education ;

*To provide recommendations to the Village and BOE on how to operate
on a cost effective basis ;

*To monitor the actions taken by the state of New Jersey , Bergen County
the BOE and any governmental entity which has or may have an impact
on the taxes of the Village of Ridgewood ;

*To provide information to the citizens of the Village of Ridgewood on
the operation of their government and costs associated therewith :

*To promote local, regional and state legislation for the fair
taxation of Ridgewood residents ;

*To evaluate candidates for public office .

Membership is available to residents of Ridgewood or anyone who
maintains a business address in the Village of Ridgewood .

The Ridgewood Taxpayers’ Association is looking for Board Members and
those interested should email there resume and a short cover letter to: [email protected]

1-800-PetMeds Private Label

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Christie Embraces Irresponsible Spending says credit agencies are the ‘same group of folks who allowed the financial crisis to occur’

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Christie Embraces Irresponsible Spending says credit agencies are the ‘same group of folks who allowed the financial crisis to occur’

TRENTON – Don’t put too much stock in those Wall Street rating agency downgrades, says Gov. Chris Christie.

The governor, whose administration has been at the helm during six credit rating downgrades over the course of his tenure to date, says he’s not worried about additional downgrades. Christie said he finds it interesting they “continue to downgrade the people who try to act responsibly,” but added he doesn’t live in fear of rating agencies.

“No, I don’t fear it,” he said Wednesday during a Statehouse news conference.

“This is the same group of folks who allowed the financial crisis to occur,” he said, arguing they “sat on their hands collecting huge fees” from clients during the financial collapse and essentially got paid “to look the other way,” he said.

“I don’t know how much credibility these places have,” Christie said.  (Arco/PolitickerNJ)

Christie says credit agencies are the ‘same group of folks who allowed the financial crisis to occur’ | Politicker NJ