Economics

Economics

If You Work Full Time, You Will Not Be Poor

By 2.5.14

President Obama said in his State of the Union last week, “But Americans overwhelmingly agree that no one who works full time should ever have to raise a family in poverty.”

Thank you, Mr. President. But even without you, as already enacted in current law, for anyone who works full time in America, the minimum wage, plus the Earned Income Tax Credit, plus the Child Tax Credit, equals or exceeds the poverty level for every possible family combination, including single mothers with children.

Full time work at the current federal minimum wage of $7.25 equals $15,080 a year. That exceed the federal poverty level for 2014 for one single person living alone, at $11,670. In addition, that single person still qualifies for an earned income tax credit of $496. Because that is “refundable,” the individual still gets that in cash even if he or she is not liable for any federal income taxes.

With one child, the single person gets an additional $1,000. Plus the Earned Income Tax Credit increases to $3,305, for a grand total of $19,385. The poverty level for 2014 for a single mother with a child is $15,730.

Economics

The Taxation President

By 1.30.14

The President started last year forcing through sweeping tax increases. The top marginal income tax rate rose by nearly 20%, to punish the most successful for the anti-social acts of working too hard and producing too much. The capital gains tax rate was increased by nearly 60%, as was the tax on corporate dividends. America’s top marginal corporate income tax rate remains the highest among all developed world economies, close to 40% on average, given state corporate tax rates as well.

But those punitive tax burdens are just not enough for President Obama — who should go down in history as the Taxation President. In Tuesday night’s State of the Union, Obama started his proposals with the promising pro-growth concept of corporate tax reform, saying:

Economics

Obama’s Inequality Fallacies

By 12.10.13

President Obama veered hard left last week, trying to change the subject from Obamacare to “inequality.” Obama and his Obamabots reflect a lot of confusion whenever they start using this word.

There are two fundamentally different concepts of “Equality.” One is equality under the law, that everyone should face the same rules. That was central to the American Revolution itself, which was the historic cutting edge to abolish the legal “aristocracy,” nobility, monarchy, and all of their vestiges in the law. There is no political dispute today over this form of equality. Republicans and conservatives support equality under the law just as much as Democrats, “liberals,” and Marxists ostensibly do.

Economics

Bubbles for the Rich, Welfare for the Poor

By From the November 2013 issue

WHEN GOVERNMENT ECONOMISTS, academics, and the talking heads on bubblevision speak of “modest price inflation,” they know full well that the effects of the quantitative easing policies that they have advocated and implemented have not been fully expressed in America’s consumer price index (CPI). Rather, the best evidence of runaway inflation can be found, among other areas, in the markets for commodities, foreign exchange, equities, bonds, farmland, real estate, and art. Savvy statisticians know this, of course, and many of them have impeached the U.S. government methodology used to compute the CPI. For example, using the methodology according to which CPI was computed in 1980, recent CPI inflation is estimated to have been close to 10 percent. Using the government’s methodology of 1990, CPI inflation for the same period is estimated to have been closer to 6 percent.

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