Leading the way from Fiscal Cliffs

First off Happy New Year!

Leading The Way

This Fiscal Cliff thing is some real drama,  like your not enough stressed  out with the slow turnaround of the economy.  The market is not the same animal anymore and the tools you used,  well you might as well pack em in.    As this dog and pony show played out kind of leaves you as helpless,  you do not want to be at the mercy of anything,  especially a team of individuals who do not sweat the bills they pass.  This has been more like a production of Hollywood than a government by the people,  the sad thing is we vote for this.  All of this is out of control  from towns, cities and states as a whole, corruption is the ruler of the day and into the night, did you get much sleep?  Are you happy?

The real drama here is going to be the next bubble, not a cliff.  Like the Sub-prime fiasco, everybody had their hand in the cookie jar (free homes) this was like a kid looking at chocolate through a plate glass window and the owner waves you in.  Now what has shored all this up where your not eating road kill for supper yet.  Remember all the Stimulus Money from all world governments?  Like sandbags lining the shore as to keep the rising water out!  Yes, sir, you have to put a face on this money just like the sub-prime, derivatives and swaps when the market went to hell.

 But you say we're coming back,  housing is up, we missed the Fiscal Cliff (update 40min ago 4:30pm CST waiting on the House, passed the vote 257-167) and maybe milk won't go to $7 dollars a gallon, that frickin bill should just be burned.

Some highlights of our near cliff,  ah we went over:
(note all of this came over the wire in bits and pieces)

Payroll taxes rose to 6.2% under the deal, from 4.2% last year.

The nonpartisan Tax Policy Center estimates that 77% of Americans will see higher taxes because of the elimination of the payroll tax cut, meaning $115 billion less in disposable income.

A household making $50,000 to 75,000 a year will make $822 less this year than last year, according to Rosenberg’s calculations. Those making $75,000 to $100,000 will see $1,206 less in their paychecks, while those making $200,000 to $500,000 will see a drop of $2,711 in their paychecks.

Under the Senate deal, passed in the Senate by an 89-8 vote, taxes would remain steady for the middle class but rise at incomes over $400,000 for individuals and $450,000 for couples.

The measure also allocates $24 billion in spending cuts and new revenues to defer, for two months, some $109 billion worth of automatic spending cuts that were set to slap the Pentagon and domestic programs starting this week.

The measure would raise the top tax rate on large estates to 40 percent, with a $5 million exemption on estates inherited from individuals and a $10 million exemption on family estates. At the insistence of Republicans and some Democrats, the exemption levels would be indexed for inflation.

Taxes on capital gains and dividends over $400,000 for individuals and $450,000 for couples would be taxed at 20 percent, up from 15 percent.

The bill would also extend jobless benefits for the long-term unemployed for an additional year at a cost of $30 billion, and would spend $31 billion to prevent a 27 percent cut in Medicare payments to doctors.

Another $64 billion would go to renew tax breaks for businesses and for renewable energy purposes, like tax credits for energy-efficient appliances. 

Will see what Wall Street thinks of this tomorrow, good for the average Joe cause he's broke. (good the market is up over 308 points but notice how long we have been stuck around 13000 for the Dow)  Sorry for the interruption the boys' were working late on the cliff, so where was I,  ah yes.   

What has been created here is yet another cookie jar but this one is not sitting on the counter.  Even at low-interest rates, the average Joe is having a hard time getting a loan,  now how is that possible?  The banks were bailed out with future tax money (from the people, we're a tool) but the loans are not flowing for the simple reason the rates are too low, not enough profit here for the Jack Wagons' who created all of this.  You will be able to get this loan easier when the rates do go up but at which point all the Stimulus will go up with it.  For intense,  if the rate goes up 1% the US will pay $100 billion dollars more a year just on the interest of the loan.  So the Bankers' of the world are rolling their hands waiting for this day to arrive and yes it is coming.

What happen to the cream?

Now many states in America are hurting for money and like the average Joe, they also are having a hard time getting a loan.  They can get the loan but since the regulators have downgraded their credit (by the way the regulators graded the paper on the sub-prime as good paper yeah right) so even if a state got a loan the interest rate is too high to make it feasible.  So the next phase of all of this is a state at some point is going to go BK.  Now in a way this is a good thing, think about all the corruption out there.  The Jack Wagons' have been skimming the cream off the top of the milk pail far too long and if a state cannot get a loan what cream are the Jack Wagons' going to skim from, none!  So what this will create is they will be looking at others piles of money from their so called friends which all are bought and sold and will be salivating like Pavlov's dogs because that's all there is left, this will keep the Jack Wagons' busy for they are as bad as a Heroin addict. (they will be looking at drug money and the Cartel will take care of that)

What comes down will only go up

This next bubble is going to be hard on the economy as a whole throughout the world but it's going to change the way we do business.  To many people writing about this stuff always leave in a fear factor, like calling people sheeple and telling you to wake up.  I will and do not come off this way, it's too easy to tell you what is wrong (like heading towards a cliff).  The idea is to give you tools you can use to fight all the crap bills that get passed into law.  The corruption part of society has this well sewn up,  makes it very hard for an individual to maneuver.  So the bills of legislation and regulation make it so, well not if you participate in the game,  all the bills to the moon can't make you purchase what you don't need or want.  The key here in this new market is not to be an individual but to assemble as a purchasing group, that alone puts the fear into the bill makers and this needs to happen, the creation of the G.C.C.U. is a good example of this.  All for one and one for all,  our kids depend on this or their sunk!

Want to get to the point where we're happy damn it!  Leading the way to this is we all love something,  that alone is going to throw the switch of how we market and do business.  Real simple,  to the ones in business,  what the hell are you doing out there!    With a sea of faces looking in,  those entities are either going to do good or doors will be closed.   You can thank me later,  but right now I'm picking you for a new tool box.

This video is scary,  but the countries around the world their arm is broken and it has to be set in order to heal, that's going to hurt like hell!  But like the old saying from Lost in Space " Have no fear Smith is here"  and who is this Smith fellow, that's right Pod an American Indian at your service, once again you can thank me later, right now we got work to do!  Don't be scared need to get rid of some bad apples,  for there is lots of good trees out there.

Native Son
Mark Brewer

Fact Sheet on tax Cliff   (all the info is not here why?)

journeymanpictures



Didn't mean to scare the heck out of folks (watch this small clip about the cliff at 5:50 to 6:01 I don't even think that's funny Joe)

Tax Cuts Expire - Damn Fiscal Cliff

Well, it's like a fire sale, no matter who wins the election your going to see higher taxes. If Congress does nothing, tax rates on income, capital gains, dividends and estates will increase on ordinary income would reach 39.6 percent, up from 35 percent, and the top rate on capital gains would be 23.8 percent, up from 15 percent. That is why you see so many McMansion homes on the market today!

About 88 percent of households would see a tax increase. Those who would avoid it include people who don’t have wage income subject to the payroll tax and who don’t make enough from other income to pay taxes. This group includes low-income senior citizens on Social Security. The estimated $536 billion tax increase will have a potential economic effect of tax increases, particularly for business owners who report their profits on individual returns. How the hell is that going to create more jobs?

Congress fiscal cliff pushing you off?  It's not clear yet, for the numbers are not in, for the simple reason they won't be starting on this till tomorrow after the election. The Republicans want to keep the tax breaks but who knows? We're going to find out, let's face it the fiscal cliff is Congress, they're broke and were going to pay! The top statutory tax rate on ordinary income would reach 39.6 percent, up from 35 percent, and the top rate on capital gains would be 23.8 percent, up from 15 percent.

History of the Income Tax in the United States

Source: Tax Foundation

The nation had few taxes in its early history. From 1791 to 1802, the United States government was supported by internal taxes on distilled spirits, carriages, refined sugar, tobacco and snuff, property sold at auction, corporate bonds, and slaves. The high cost of the War of 1812 brought about the nation's first sales taxes on gold, silverware, jewelry, and watches. In 1817, however, Congress did away with all internal taxes, relying on tariffs on imported goods to provide sufficient funds for running the government.

In 1862, in order to support the Civil War effort, Congress enacted the nation's first income tax law. It was a forerunner of our modern income tax in that it was based on the principles of graduated, or progressive, taxation and of withholding income at the source. During the Civil War, a person earning from $600 to $10,000 per year paid tax at the rate of 3%. Those with incomes of more than $10,000 paid taxes at a higher rate. Additional sales and excise taxes were added, and an “inheritance” tax also made its debut. In 1866, internal revenue collections reached their highest point in the nation's 90-year history—more than $310 million, an amount not reached again until 1911.

The Act of 1862 established the office of Commissioner of Internal Revenue. The Commissioner was given the power to assess, levy, and collect taxes, and the right to enforce the tax laws through seizure of property and income and through prosecution. The powers and authority remain very much the same today.

In 1868, Congress again focused its taxation efforts on tobacco and distilled spirits and eliminated the income tax in 1872. It had a short-lived revival in 1894 and 1895. In the latter year, the U.S. Supreme Court decided that the income tax was unconstitutional because it was not apportioned among the states in conformity with the Constitution.

In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the U.S. tax system. The amendment gave Congress legal authority to tax income and resulted in a revenue law that taxed incomes of both individuals and corporations. In fiscal year 1918, annual internal revenue collections for the first time passed the billion-dollar mark, rising to $5.4 billion by 1920. With the advent of World War II, employment increased, as did tax collections—to $7.3 billion. The withholding tax on wages was introduced in 1943 and was instrumental in increasing the number of taxpayers to 60 million and tax collections to $43 billion by 1945.

My friends, that is why seen on your birth certificate your name is in all CAPITAL LETTERS and on every document you sign. You are treated as a corporation when you were in school you learned to write your name as one capital letter first then lower case after. All capital letters are not the real person, look this up. This is known as your STRAW MAN  (I'll make this fun).

infomaticfilms



I said this before there is no election this year, no society has survived the test of time, we are going to be no different. So enjoy a new song from the Stones, kind of fitting for the times. Reason being Florida had not counted all the votes even though the election was over but all the electoral college votes were counted, the rest would be counted by Saturday. The 91st Congress took this on and tried to abolish electoral vote, it did not pass. This was OK in the day when few people lived in many states and those with large population would dominate the vote, you need a balance. The electoral vote worked, also the public was not informed back then as to now. The electoral college can appoint a president but the public needs to vote for them. Those who stood in line down in Florida,  how does it make you feel the election was over and your vote was not counted yet?   

2nd term for President Obama

Well Obama wins,  Wall Street will be down tomorrow. Wall Street invested millions in Romney's candidacy in large part because Obama has antagonized the financial community with calls to raise taxes on the wealthy as part of any deficit reduction package. In addition to the Obama victory, Democrats will maintain control of the U.S. Senate. That means the agenda of the conservative House of Representatives has a much harder path to realizing its policy hopes of big tax and spending cuts. We're going to find out. 

Best to you Pod!

TheRollingStones