The Deal

Here are the key components included in the new deal –

·         Marginal tax rates increase to 39.6%, up from 35%, for individuals earning $400,000.00+ and for couples earning $450,000.00+

·         Dividend and capital gain tax rates go up to 20% from 15% for the same earnings levels as above

·         Establish a permanent tax rate of 40% on estate values exceeding $5 million

·         Index the alternative minimum tax for inflation

·         Phase out exemptions and deductions for individuals earning $250,000.00 and couples $300,000.00

·         So-called payroll tax (social security premiums) goes back to 6.2% on individual earnings up to $113,700.00

·         Supplemental unemployment payments extended for one year

·         Postpones 27% reduction in payments to Medicare providers (if you haven’t seen this one, read about it – your president was willing to cut medical payments up to 27% for those who paid into the system in order to provide medical coverage to those who didn’t pay) 

What is not included in the new deal? 

·         Basically nothing to reduce government spending which is the cause of the deficits and the escalating debt

Such a deal, huh?  The deal passed the senate by a vote of 89 – 8.  They thought it was a good deal.  This got us to thinking of another recent good deal – investing in Bernie Madoff.  If one were to draw a comparison and look at the senate through Bernie’s eyes, as a source of new “investors,” Bernie would conclude that he had 89 certain suckers.  Of the eight who did not vote for the new deal, 2 didn’t think it was generous enough – so Bernie would call these two – super suckers and he would just jack up the bogus return numbers and they would be on board the next day.  Which leaves 6 senators, out of 99, who see the new deal for what it is – a Ponzi scheme.  The world’s biggest Ponzi scheme run by Obama, Bernanke and 89 senators and, just in, 256 members of the house.  They voted for the Ponzi scheme too.

It’s a brand new year but same old stuff.  Here is some wording that should’ve/could’ve been added to the bill that would have given it some discipline:

“Over the next four years, the budget deficit must be brought to zero by reducing spending to meet revenues according to the following schedule:

Fiscal 2013 – no more than $900 billion deficit

Fiscal 2014 – no more than $600 billion deficit

Fiscal 2015 – no more than $300 billion deficit

Fiscal 2016 – zero deficit – BALANCED BUDGET

Taxes can be raised on those earning less than $250,000.00 at any time during this four year period.  No additional taxes on the $250,000.00+ group and no new revenue schemes permissible.   All deficit reductions must come from spending.  If they do not occur, anyone receiving a payment from the US government in any form will be taxed up to 25% of the amount of the payment until the deficit reduction target is attained.  Such taxation will be calculated by a independent third party (we suggest Google, Amazon or IBM using escrow accounts) and applied equally across the board – politicians, employees, contractors, food stamps, etc. – everyone but social security and Medicare recipients because they have mostly funded their payments through years of premium payments.”

 What does this deal mean?  Endless harping and future propagandization going forward with the Obama gang claiming the high road (?) of more government spending (they will call it making investments) and protecting the non taxpayers (more food stamps and other welfare payments) and more deficits and more debt.  We can safely say that most democrats don’t care a whit about the debt that is being acquired endlessly and they never will.  It is up to the republicans to make the case and make it again and again and it will be a difficult job with the AKPD propaganda machine fully blaming the republicans for everything – past, present and future.

And for this reason alone, we thank the few republicans who did stand up for discipline – we think they are in a thankless position – they do not have a good propaganda machine to counter the AKPD manipulation of message and media and they do not have the support of the mainstream or Hollywood media in their efforts to reduce government spending; reduce deficits and reduce the growth of debt.

 

It is time to call this new deal what it is - war on America's taxpaying, middle class.  There is only one rule of engagement in this war - take no prisoners.  If you find yourself in this group, a possible resolution for the New Year could be - Look out for yourself and your family.  Your government is set on destroying your assets; your income; your net worth.