Neither political party seems to know how to cut or curtail spending

market analysisI have sat here and read a whole lot postings that I think are off topic, so I figured I might as well add a few cents.

It is true that neither political party seems to know how to cut or curtail spending.

But here are a few other facts.

  • 96 percent of all federal tax revenue comes from half of all taxpayers.
  • 53 percent of all federal tax revenue comes from the top 5% of all
  • 3.5 percent of all federal tax revenue comes from the bottom 50% of
    all taxpayers.
  • 44 million taxpayers are estimated to owe no federal income tax and will receive a refund for every dollar that was withheld from their paychecks over the past year.

I thought we were all here to encourage and share ways to get out of debt, not have b%^ch session about people who have been successful financially. I would agree that greedy share holders and CEOs have led to less than stellar scruples. To me, the best ad campaign ever was Prilosec. No one knew what that little purple pill did, but everyone was convinced they needed it. We are the ones who get suckered into those ads if we allow them.

A few more intemperate comments.

The only truly fair tax is the Fair Tax being sponsored by Congressman John Linder. If we believe that the rich should pay a larger percentage, then we fall victim to Karl Marx. We also should believe that before we share a pizza with 3 friends, we weigh everyone. The fattest gets the least and the smallest gets the most.

No where in the Constitution of the United States does it say the Federal Government is to be in the welfare business, giving out free medical care, prescriptions, education, etc. If they got out, they could seriously cut the budget and our tax burden.

Anyone who gets back more money from filing their Income Tax than they paid in is getting welfare. My oldest son did not think that way (nor did I when I was his age with a baby) when he got his first return after filing the Earned Income Credit while in college with one child. Now that he is nearing the upper levels financially, he sees things different, so do I.

Including all tax returns that had a positive AGI, an AGI of $130,080 or more in 2003 constituted the nation’s top five percent of earners. To the top one percent, a tax return had to have an AGI of $295,495 2002 when the thresholds were $126,525 and $285,424. However, top incomes in 2003 still did not equal 2000. At the height of the boom and bubble, $313,469 was the threshold to break into the top one percent.

The number of millionaires who inherited their money is far less than those who worked, saved, and made wise choices and we willing to take risks.

That means that 95% of the wage earners made less than 130k. So if my wife & I reach the 130k level, are we evil? Did we steal money? About 30% of my income is taxable pension from serving 23 years in the Armed Forces. I did not finish college until I was 28 and had spent almost 10 years in the service, working my way up from private to sergeant. While in college, I did ROTC, went back in, and served another 12. I worked 3 part-time jobs in college with a wife and 2 small kids, full class load, plus ROTC and Reserve Drill. I taught myself to program in databases, which led me to my current job. That did not prevent me from being almost $20k in unsecured debt, and another $220k in secure debt (house is 190). I do not want to know how to be rich; I want to know how to keep the transmission from falling out of the car 2 months after the last payment and 1 month after the refrigerator quit. I am, at 46 YO with the youngest paying his way through college, going for my Master’s – only because my company will reimburse me at the end of each semester.

All I am saying is that we all have our stories. Most people do not have it easy and have work, scratch, or claw our way out. I spent 4 months unemployed; I was active in community affairs, professional organizations, etc. That is how I landed my job, that and a whole lot of pray and fasting. We need to look to the Lord and ourselves to get out of debt, to use what we have wisely.

Enough preaching.