Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Taxes

Trickle of Companies Leaving Illinois Turning Into a Flood

This article appeared online at TheNewAmerican.com on Friday, August 14, 2015:  

On Thursday, Hoist Liftruck’s announcement that it was moving more than 500 manufacturing jobs to Indiana was just the latest in a long and almost fevered list of other companies seeking to escape Illinois’ outrageous workers compensation costs and high taxes.

On July 14 machine-maker DE-STA-CO said it was moving 100 jobs to Tennessee. The next day energy processor Bunge North America said it was shutting down its plant in Bradley, Illinois, and laying off 210 workers. The day after that General Mills pulled the plug

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Social Security Disability Trust Fund Could Be Depleted by Late 2016

This article appeared online at TheNewAmerican.com on Thursday, July 23, 2015:  

Every year the language of the trustees of the Social Security system becomes more strident, and every year the managers of the program kick the can further down the road. In its report issued on Wednesday, the Social Security and Medicare Board of Trustees stated that “Social Security’s Disability Insurance (DI) Trust Fund now faces an urgent threat of reserve depletion, requiring prompt corrective action by lawmakers if sudden reductions or interruptions in benefit payments are to be avoided.” The report noted:

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Is Puerto Rico America’s Greece?

This article appeared online at TheNewAmerican.com on Monday, July 6, 2015: 

After running deficits every year since 1973 and paying for them by borrowing, the U.S. commonwealth of Puerto Rico has finally run out of options. On June 28, the island’s Governor Garcia Padilla admitted that its $73 billion “debt is not payable.… We will [shortly] be in a death spiral.” Padilla added: “There is no other option. I would love to have an easier option. This is not politics, this is math.”

The math is persuasive.

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Greeks Shout “NO!”

This article was published by The McAlvany Intelligence Advisor on Monday, July 6, 2015:  

Greek citizens shouted “No!” to further austerity measures for the hapless country in exchange for more of what got it into trouble in the first place: other people’s money. The lopsided 60-40 vote astonished telephone pollsters, who predicted a much narrower victory for Greek Prime Minister Alexis Tsipras of the far-left Syriza party. Although the issues were far more complicated than the referendum made it appear, the 68-word ballot question made it easy: do you want more increases in taxes, more cuts in pension benefits, another increase in the VAT … or not?  Translated into English, the ballot read:

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More Proof People Are Moving From High Tax States

This article appeared online at TheNewAmerican.com on Friday, June 26, 2015: 

The latest interactive graph from CNBC  shows more people moving from high tax states such as Connecticut, New York, New Jersey and Illinois to lower tax states such as Texas, Tennessee, Colorado, and Arizona. The authors of the latest study reviewed data from United Van Lines and Atlas Van Lines over the last 10 years and concluded that Connecticut was the poster child for out-migration from a high tax state.

For the year 2013, and for the 10 years prior, 55 percent of all moves by these movers took people out of Connecticut. The Nutmeg State levies more than

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OECD Issues Pessimistic Forecast for France

This article appeared online at TheNewAmerican.com on Wednesday, June 24, 2015: 

The OECD — the Organization for Economic Cooperation and Development — put the best face possible on France’s declining economy in its just-released forecast. The report was full of optimism about the future but admitted that the present reality is discouraging. Note the use of words “projected” and “should” in its opening paragraph:

Economic growth is projected to gain momentum in 2015 and 2016. Lower energy prices, improving financial conditions, slowing fiscal consolidation, strengthening external demand and a pro-competitive reform agenda should underpin an increase in consumption and export volumes.

But the reality is far different, said the OECD: 

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CBO Issues Ambiguous Report on Impacts of Repealing ObamaCare

This article first appeared online at TheNewAmerican.com on Monday, June 22, 2015: 

On Friday the Congressional Budget Office, the nonpartisan government agency that is tasked with predicting economic and budgetary impacts of various government programs, issued its analysis of what would happen if ObamaCare (the misnamed Affordable Care Act) were repealed. Its first questionable assumption was that it would be totally repealed effective January 1, 2016.

Its ambiguous, halting, and heavily discounted conclusions served as fodder for the statist media such as CNBC and NBC to warn of huge deficit increases if the socialized medical care program were repealed. NBC headlined a disaster ahead:

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U.S. Financial Outlook has “Worsened Dramatically”

This article first appeared online at TheNewAmerican.com on Wednesday, June 17, 2015: 

English:

This graph is outdated but revealing

 

In its just-released report “The 2015 Long-Term Budget Outlook,” the Congressional Budget Office stated bluntly:

The long-term outlook for the federal budget has worsened dramatically over the past several years, in the wake of the 2007-2009 recession and slow recovery…. If current law remained generally unchanged in the future … growing budget deficits … would push [the national] debt above its current high level.

It’s all about government spending that’s baked into the cake:

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Kansas Considers Tax Increases Just as Its Economy Revives

This article appeared online at TheNewAmerican.com on Friday, June 12, 2015:

English: Aerial view of Kansas City, Kansas, l...

Aerial view of Kansas City, Kansas, looking southwest. The Kansas River (right-center) joins the Missouri River (left). A small piece of Kansas City, Missouri is visible on the left of the Missouri River.

 

Kansas House members debated until midnight Thursday whether to raise sales and cigarette taxes in order to close the state’s budget deficit. The House had just resoundingly defeated a previous measure that would have raised those taxes even more, but the state is facing a deadline to balance its budget, required under its constitution.

There’s a roughly $400-million shortfall this year, which is estimated to increase for the next several years.

Left-wing pundits have had a field day taking Governor Sam Brownback to task for calling his massive tax cuts enacted in 2012 an “experiment,” a “shot of adrenalin,” and similar to Ronald Reagan’s experiment based on the Laffer Curve: Reducing tax rates will increase tax revenues as the economy grows.

Paul Rosenberg, senior editor of Random Lengths News, a tiny weekly newspaper operating out of Long Beach, California, is a good example. His paper describes itself as an “independent progressive newspaper” with a readership of 63,000 that “is proud of the support from the Harbor Area labor unions, who allow us exclusive distribution inside most of their union halls.”

Rosenberg managed to get a screed attacking Brownback published in the hard-left Salon magazine in which he describes the Kansas governor as

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Where Else but America?

This was published by The McAlvany Intelligence Advisor on Wednesday, June 3, 2015: 

Since 1979, editors at International Living’s magazine and website have offered indulgent fantasies for its readers, many of whom are looking to escape to places that are warmer, cheaper, friendlier, safer, and have cheap healthcare. Some of them have no doubt decided that the freedom fight is over, that freedom has lost, and it’s time to get out of Dodge while the getting is still good. It’s Playboy for the Boomers.

In its latest iteration of “The World’s Best Places to Retire in 2015,” they write:

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Moody’s Lowers Chicago’s Debt Rating to Junk Status

This article first appeared online at TheNewAmerican.com on Wednesday, May 13, 2015: 

Moody’s cut its rating on another $4 billion of Chicago’s debt to just above junk status, for a total of $13 billion that was downgraded on Tuesday. This is approaching two times the city’s total annual revenues, and fails to take into account the $550 million payment the city must make in December to keep the police and firemen’s pension plan solvent. Nor does it take into account the $230 million penalty the city must pay for terminating previous “swap” agreements that allowed it to continue to borrow at competitive rates.

With this two-level drop, $2 billion in additional penalties may come due, according to Moody’s: “[Our] current rating actions give the counterparties of these [swap] transactions the option to immediately demand up to $2.2 billion in accelerated principal and accrued interest [payments] and associated termination fees.”

Doing the math is frightening. But Chicago’s Budget Director Alex Holt seems unconcerned: 

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New York’s Fracking Ban Hurting Upstate New Yorkers

This article first appeared online at TheNewAmerican.com on Monday, May 11, 2015: 

When New York Governor Andrew Cuomo was running for reelection in 2012 he said he was concerned about the poor economy hurting residents in upstate New York, particularly those living along the state’s southern border with Pennsylvania. Residents of Broome and Bradford counties in particular could peer across the border and see residents of Pennsylvania’s Susquehanna county living better, paying less in taxes, and enjoying the economic benefits of the fracking boom.

Cuomo briefly considered lifting the state’s de facto ban on fracking in those counties as a way to give their residents a chance to enjoy some of those benefits.

But only briefly.

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American Sea-Change in Attitude Toward Government

This article was first published at The McAlvany Intelligence Advisor on Monday, April 20, 2015: 

Careful observers of Hillary Clinton’s brief announcement for the presidency on April 3 noted one word missing: redistribution. She alluded briefly to how “the deck is still stacked in favor of those at the top,” but she focused instead on wanting to be everyone’s “champion,” supporting strong families, same-sex marriage, and economic opportunity.

She and her advisors no doubt read and took to heart the latest from Gallup. In 2006, by a margin of more than two to one, 69-28, those surveyed said that

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allup: Americans Say Federal Government Is Number One Problem

This article first appeared online at TheNewAmerican.com on Monday, April 20, 2105:

Income inequality and mortality in 282 metropo...

Income inequality and mortality in 282 metropolitan areas of the United States.

According to a recent Gallup poll, Americans have named the federal government as the most important U.S. problem for four months in a row, noting that “dissatisfaction with government is by no means a new issue,” having been at or near the top in its surveys for years.

None of this is new news to Emmanuel Saez, economics professor at the University of California, Berkeley, or to any of his co-authors in their study published by the National Bureau of Economic Research in early 2013.

That study summarized polls of more than 5,000 Americans about income inequality in the United States and what if anything should be done about it. They were fully expecting to discover that

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House Votes to Repeal Federal Estate Tax

This article first appeared online at TheNewAmerican.com on Friday, April 17, 2015: 

English: Official photograph of John Thune, U....

U.S. Senator John Thune from South Dakota

On Thursday the House voted, 240-179, to repeal the federal estate tax, setting the stage for a confrontation with the Senate and a veto threat by the president. Identical bills were presented in both houses of Congress, by Representative Kevin Brady (R-Texas) and Senator John Thune (R-S.D.). Brady’s bill passed with the support of all but three Republicans and the defection of seven Democrats. Thune’s bill is expected to die in the Senate.

Said Brady: 

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Mayor Rahm Emanuel’s Election Win Will Cost Chicago Even More

This article first appeared online at TheNewAmerican.com on Tuesday, April 7, 2015:

, former White House Chief of Staff

Going into Tuesday’s runoff election, Mayor Rahm Emanuel held nearly a 20-point advantage over his rival, Jesus “Chuy” Garcia, a hard-left progressive member of the Cook County Board of Commissioners. Four years ago Emanuel won in a walk, taking 55 percent of the vote. In February he couldn’t even manage a majority, with just 46 percent, forcing Tuesday’s runoff. As a North Side small business owner explained:

[In February] I cast an “anybody-but-Rahm” vote. Rahm is not a likeable guy. Sadly, he has no competition. Chuy is a nice guy but doesn’t seem to have a clue what he would do if elected.

When I go back for the final vote, I will vote for Rahm. Maybe he has a chance of fixing some of the [city’s] financial problems.

That’s hardly likely. In the past four years, Emanuel’s abrasive personality and his leftist worldview have added immensely to Chicago’s woes:

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Is NewSat the next Solyndra?

This article first appeared at The McAlvany Intelligence Advisor on Friday, March 27, 2015:

English: Export-Import Bank of the United Stat...

In 2012 and 2013, the Export-Import Bank unanimously agreed to guarantee loans by Lockheed Martin to a small private Australian satellite company called NewSat, whose president was ecstatic at the news. NewSat’s CEO Adrian Ballintine celebrated:

It is fantastic to receive the support of the U.S. Ex-Im Bank. They are backing our … satellite with a direct loan, with a favorable low-fixed interest rate and long tenure.

 

The deal is an Australian first for Ex-Im Bank and a major milestone towards the launch of Australia’s first commercial satellite.

His was a company worth $50 million before Ex-Im guaranteed $304 million in loans by Lockheed Martin to provide it with a satellite designed to reach all across the South Pacific and rake in millions. Ex-Im was simply following its charter: make loans no one with any sense would consider making.

Of course, that isn’t exactly what the bank’s charter really says;

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Tax-credit Private-school Scholarship Funding Explodes in Oklahoma

This article first appeared online at TheNewAmerican.com on Tuesday, March 24, 2015:

Many Oklahoma taxpayers are paying less in state income taxes, thanks to contributions made to scholarship granting organizations (SGOs) last year.

It’s a new wrinkle, and many of those opening envelopes from the Oklahoma Tax Commission are in for a pleasant surprise. A single taxpayer contributing $2,000 to an SGO last year will save $1,000 in state income taxes. A couple contributing $4,000 will save $2,000. These are credits, not deductions, based on one-half the contribution. Translation: Every dollar of credit saves one dollar in state taxes.

For those able to give more — think successful small business owners, lawyers, accountants, physicians, software engineers, farmers, ranchers, and other business owners operating as regular C corporations — that letter in the mail this month could generate even greater excitement.

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Boston University Economist Calls Out Congress on Enormous Fiscal Gap

This article first appeared online at TheNewAmerican.com on Thursday, March 12, 2015:

Logo of the United States Government Accountab...

Logo of the United States Government Accountability Office

During his annual trek to Washington, D.C., to lecture Congress on its spendthrift habits, Boston University economist Laurence Kotlikoff took the gloves off this year. He dressed down Senator Mike Enzi, chairman of the Senate Budget Committee, along with the committee’s members:

Let me get right to the point. Our country is broke. It’s not broke in 75 years or 50 years or 25 years or 10 years.

 

It’s broke today.

 

Indeed, it may well be in worse fiscal shape than any development country, including Greece.

It isn’t just Enzi, or his committee, or the present Congress, that’s responsible for a fiscal gap that’s vastly larger than that projected by the Congressional Budget Office (CBO). It’s the idea that the country can borrow without limit because

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Moody’s Downgrades Chicago Again

This article first appeared online at TheNewAmerican.com on Tuesday, March 3, 2015:

English: in Chicago, Illinois, USA.

Downtown Chicago, Illinois

Within hours of Moody’s Investors Service announcing another downgrade to Chicago’s general obligation bonds last Friday, Mayor Rahm Emanuel’s administration responded, saying that Moody’s was out of touch with reality:

We strongly disagree with Moody’s decision to reduce the city’s credit rating and would note that Moody’s has been consistently and substantially out of step with the other rating agencies [Standard & Poor’s and Fitch Ratings], ignoring progress that has been achieved.

At the moment those other two agencies rate Chicago’s debt at A-plus or A-minus, each with a negative outlook. But in light of an imminent court ruling that could invalidate efforts to cut pension benefits, along with the crushing and increasing burden of those benefits, observers are just waiting for the next two shoes to drop.

As Moody’s noted, its downgrade will stand even if the court validates those pension modifications: 

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.

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