Compromise!?

Obama wants to push the so called compromise of extending the payroll tax cuts by another 2 years. If this is considered a compromise it a joke. Because first both sides for the most part agree with the idea, but yet there was still a lot of fighting over the bill? This bill extends tax cuts and there fighting over it! I wonder how long it would take to talk about balancing the budget? Now if they don't want to increase the payroll tax rates and do other things to balance the budget it will effect the middle class even more. See income tax cuts do help people, but if their wages go down even though the tax rate went down they make less money. WHY? Because if you don't help increase the median wage and allow the outsourcing of jobs, elimination of unions people will make less money even though the tax rates went down. With the Bush tax cuts the poor and middle class made less money then were the tax rates were higher. That why the Bush tax cuts must expire even for the middle class, because it doesn't work and the money can be better put to help people's wages go up or help reduce people's expenses like Health care. Same goes with the payroll tax it's a short term fix, and if middle class keeps dying the tax cut does nothing. That why the Payroll tax should increase to 6.2% and eliminate the Bush tax cuts for everyone. This will not only help balance the budget, but the country can help the middle class by reducing many families biggest cost like tuition, health care, and bring new good paying jobs.

Democrats are Dreaming

In a somewhat strange turn of events it seems the Democrats who contiguous talk themselves as being the party that will save Social Security is now the party that quite frankly is giving it lip service.  The Payroll tax (the tax that generates a lot of income for Social Security) is at 4.2%, but it is usually at 6.2%. This tax cut is set to expire by the end of the year. If the tax cuts aren't extended then that would mean that the people making  in the low income brackets (as low as 35,000) will pay 700 dollars more and people making more than 110,000 will pay a few thousands more. Granted that the expiration would hurt people in the middle class, but the U.S is running a deficit it time to make hard choices. The Debt to GDP is too high and extending tax cuts like this will hurt the economy in the long run. Because the less money the U.S tries to save now means more than that amount they are going to have to save later. In Fact Obama and some Democrats want to not only extend the tax cut, but expand it to make people pay 3.1% he claims he will pay for it by taxing the rich more. Granted this tax cut will help people in the lower bracket and that the taxes on the rich need to increase, but the U.S can't live off on just revenue neutral ideas they need revenue positive plans.  So I say the best plan would be to eliminate the payroll tax cuts to the people making over 100,000 and in fact make it 7%, and for the middle class I say compromise on slowly re-introducing the 6.2% by only increasing it by 0.5% in 2012 year and 0.5% the next year and the other 1% the third year. The U.S has to start getting serious on debt , and make long term plans to stop the social security deficit and the countries deficit.

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9-9-9 plan means MORE TAXES!

A new study shows what the 9-9-9 plan actually does. This study shows who will benefit and who will not benefit in this tax plan. Under the current policy there is no sales tax. Under this plan there will be a 9% G.S.T , but supposedly the extra tax will be off set by creating a flat 9% income tax. Under this plan there will be a 9% sales tax on everything people buy. Under this study the average tax payment per person in the U.S will be 1,200 dollars lower. So is this plan really going to reduce tax payments to people. Yes some will benefit . So who are they? They are the rich go figure. As I stated just a few days ago, people who are rich will benefit and middle income and poor will not. So people who make more than 1 million a year in income will have there tax burden reduced by 581,000 dollars. People who make between half a million to a million will pay 80,000 dollars less every year. the next two tax brackets will have there taxes reduced two, But every single person making less than 100 k will have to pay more in taxes so that the rich in the country pay over half a million dollars less in taxes. In fact the federal tax rate on the people making more than a million dollars in income would be the lowest tax rate of any other bracket. While the people in the lowest tax bracket will have not only above average tax rates, but will also be the people having there tax rate increase by the most. Under this plan about 82% of Americans will pay more in taxes to give the top 18% a tax brake. But in reality the top 5% will get the most of the money from middle income and poor Americans. So yes the Rich pay less while the poor pay more and the middle class pay more. And by the way this plan will increase the deficit by 300 billion in one year.

So in summery taxing consumers to hurt the economy more, so that rich CEO's pay less money and have more in the bank. Will defiantly solve the economic problems of the U.S. This plan isn't going to help anybody except the rich and even them are going to have long term problems, because the rich need the poor to survive.

If you need some thing more visual click on this graph

PC over Promising.

In PEI the PC's in the province who are losing terribly in the polls are trying to gain support promising something that PEI can't afford. The Pc leader Olive Crane said if elected she would reduce the P.S.T in the province from 10% to 9%.

"For a one percentage change, it means there is $20 million available to invest in Islanders. And, as you know … Islanders can make good choices with their dollars," said Crane.

And although reducing the P.S.T in the province would help the economy no doubt I think she neglects to mention that P.E.I has a deficit of 42 million. The Liberals in the province are trying to reduce the deficit and eliminate it under there projection by 2013. It seems yet again that the Liberals are the fiscally responsible one's and the Tories wants to continue to use money they don't have.

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Cut, Cut, Cut

Stephen Harper would like to cut 4 billion dollars in spending in order to help balance the budget. knowing Harper these cuts of course attacks agencies he is against like Environment Canada that will be getting a 21% cut this year. which is over 220 million dollars in cuts. Now I am all for balancing budget's, And I support cuts, but I think we need shared cuts around the board. The cuts should of course depend on the countries priorities. The Conservative Priorities are represented quite nicely under the current cuts. Cut Statistics Canada, Environment Canada, Natural resources Canada, the Royal Canadian mounted police. It seems that these cuts effect agencies that Harper doesn't like a lot. In fact one of the biggest agencies that are getting the cuts is of course Environment Canada which as I said is getting cut by more than 20%. Most of the cuts are climate change research and scientist. The parts of the budget that is getting more money is of course correctional services which don't need any more money as are crime rates are already low, and are rehabilitation rates are very good. This money is just really going to build more prisons. OOh! I know where Harper can find billions of dollars in cuts and he won't need to cut important agencies like Canada' Research council. He could just cut 10 billion in mega prisons and another 30 billion in jets. We can also put the corporate tax rate at 18% and more than balance the budget, so we can put in policies like national Day Care system, or a National Pharma care system. Or just Maybe make all the family tax cuts promises Harper made to voters during the election. It seems Harper's priorities are already made.

1. Big Corporations
2. Prisons
3. Jets
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100. Hard Working Canadians
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125. Health care
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Last: Environment