Category Archives: taxes

Cost of Government Day Finally Arrives on August 19, 2010

Every year, the Americans for Tax Reform Foundation and the Center for Fiscal Accountability calculate Cost of Government Day. This is the day on which the average American has earned enough gross income to pay off his or her share of the spending and regulatory burdens imposed by government on the federal, state, and local levels.

In 2010, Cost of Government Day falls on August 19. That means working people must toil 231 days out of the year just to meet all costs imposed by government. In other words, the cost of government consumes 63.41 percent of national income.

“Two years ago Americans worked until July 16 to pay for the cost of government: all federal, state and local government spending and regulatory costs. That government was too expensive and wasteful. Two years later, we work until August 19 for the same bloated government. We have lost an additional full month of our income to pay the cost of government in just the last two years,” said Grover Norquist, president of Americans for Tax Reform.

Key findings of the Cost of Government Day report include:

  • Cost of Government Day (COGD) falls 8 days later in 2010 than last year’s revised date of August 11.
  • Workers will have to labor 104 days just to pay for federal spending, which consumes 28.6 percent of national income.
  • Taxpayers will have to work 52 days just to pay for state and local government expenditures.
  • The average American worker must labor 74 days to cover the costs of government regulations. A breakdown of the COGD components can be found here.
  • The report also includes a state breakdown. The earliest Cost of Government Day occurs in Alaska, on July 28. Connecticut has the latest COGD, on September 17.
  • One of the contributing factors to increased spending is the growth in government payrolls. The federal workforce totaled 4.4 million employees this year, while the addition of state and local workers brings the total government workforce to 24.315 million employees.
  • The report also tracks taxpayer migration, showing taxes are a driving component behind interstate movement. In 2008, the ten states with no income tax gained over 80,000 new residents who brought with them over $900 million in net adjusted income. In contrast, the states with the highest tax burden lost 129,445 residents and $10.2 billion in wealth.

To read more, go to the Americans for Tax Reform webiste.

Look what Xenia has been missing…

Much of the fluoride added to municipal water supplies across the United States is imported from China, and is contaminated with heavy metals, according to a warning by Bernard Miltenberger, president of the Pure Water Committee of Western Maryland.

In a letter published in the Cumberland Times-News, Miltenberger notes that he first became aware of the issue in an engineering report for the city of Boulder, Colo. The report noted that the fluoridation chemicals used for the city’s water had been evaluated, and were found to contain lead levels of 40 milligrams per bag and arsenic levels of 50 milligrams per bag. The bags were being imported from China under no regulatory monitoring of acid or salt content.

Miltenberger then visited the Frostburg Water Filtration Plant in Maryland and noticed that the fluoride bags were not labeled with any importation information. He contacted the plant’s chemical supplier, Univar USA, and was then referred to Sovay fluorides. Sovay informed him that the fluoride had been manufactured by Shanghai Minthchem Development in China.

“This type of trade from a country with a track record of lead paint on toys to antifreeze in cough syrup medicine is completely unacceptable,” Miltenberger writes.

Heavy metal contamination is only the latest concern to emerge over the practice of water fluoridation, which has been controversial since its inception. Fluoride is a well-known toxic chemical, as Miltenberger notes:

“The material safety data sheets from Solvay fluorides show that a teaspoon amount of five grams of sodium fluoride can be fatal to an average size man of 70kg. … chronic toxicity by oral route may cause skeletal and dental fluorosis, thyroid, testes, kidney, liver, ambiguous carcinogenic and mutagenic effects, fetotoxic and fertility effects.”

Miltenberger also notes that fluoride toothpaste contains a warning that anyone who consumes more than a pea-size amount should contact a poison control center at once. This amount of toothpaste contains as much fluoride as just eight ounces of fluoridated water. A prescription-strength fluoride supplement marketed by Colgate warns that children under the age of six should not consume doses regularly added to municipal water.

This post is just a reminder that city officials have attempt to fluoridate the water supply numerous times and may try it again in the future. The mentality is since every surrounding municipality us is doing it Xenia should save some taxpayer money while while in-toxicating them with the health destroying chemical, fluoride. Heck, it does not even whiten teeth; too fluoride turns them muddle brown. What they do if many taxpayers lost their health and their lives? Raise taxes?

Source: Natural News, August, 15, 2010

Democrats, Deficits, the “Middle Class” and the Bush Tax Cuts

by Gerald Prante

Right now, Washington is in a debate over whether to extend the so-called “Bush” tax cuts for all taxpayers versus allowing them to expire on those taxpayers at the very top. Democrats claim that it’s fiscally responsible to let the tax cuts expire for those at the top.

The fact of the matter though is that extending the tax cuts even under the Democrats’ plan adds a tremendous amount to the deficit. It’s also worth mentioning that supply-siders are correct to point out that over the long-term, the tax cuts for high-income taxpayers would have a larger feedback effect than the tax cuts for low-and-middle income taxpayers, which were largely economically equivalent to writing checks (e.g., 10 percent bracket, increasing the standard deduction, and increased child tax credit).

For the past ten years, Democrats have painted a myth among a large fraction of the public that the Bush tax cuts only benefited the lucky few at the top of the income spectrum. It’s simply not true. Some provisions in the Bush tax cuts may have been targeted at the very top (such as the changes to PEP and Pease and the estate tax along with the rate cuts at the very top), but trillions of dollars in tax relief went to those beneath the president’s so-called “middle class cut-off” of $250,000. How do we know this? Even under Obama’s plan for the expiring tax cuts that calls for only the top rates to go back up, $2.3 trillion would be added to the deficit over the next 10 years (relative to full expiration).

Overall, looking at the long-term horizon that the country’s finances face, the Democratic rhetoric of the past 10 years that has helped ingrain in a large fraction of the population the myth that we can just go after the rich to solve our fiscal problems is just that…a myth. Sure, it sounds good for Democrats to play class warfare, but if they are serious about preventing the U.S. fiscal system from falling off a cliff in 30 years, they are going to eventually have to resort to supporting one of two policies (or a combination of the two):

(1) Cuts to Medicare and/or Medicaid
(2) Tax increases on those making less than $250,000

So throughout this entire debate over the Bush tax cuts, when Democrats say that they are concerned about middle class tax relief, be sure to ask them whether this concern is just temporary due to the economic situation we are in or whether it is permanent? And if it’s permanent, ask them what they are going to say when a VAT, which hits all citizens, comes to the table within the next five years.

Source: Tax Foundation: Tax Policy Blog, August 8, 2010.

General Motors reports $1.3 billion in 2nd quarter profits

General Motors recently reported second quarter revenues over $33 billion and profits totaling $1.3 billion. GM claims it now has made up for its previous $13 billion loss. What was not clear is whether the the $13 billion was made up by the recent $33 billion revenue stream, prior quarter profits, or by the $50 billion bailout by Democrats on Capitol Hill. Whatever the case may be, the federal government still owns GM. A positive light at the end of no GM’s not so dark tunnel is their likelihood of issuing a new public stock offering in the near future. Presumably, this means the recession is now over and the government’s 61% ownership will be purchased by private investors. The key word here is presumably not actuality.

Source: Industry Week, August 12, 2010.

U.S. Bailout Foreign Companies, but What Happened to Peace and Prosperity?

Yesterday, Newsmax ran a story about the federal government bailout of overseas banks and other foreign corporations. Part of the reason was attributed to global reach of AIG. Because we are all part of a global economy, a global bailout was to be expected.

I don’t remember hearing the Obama administration, Congressional politicians, or the media ever mentioning that part of $787 billion would help save foreign banks or General Motors, do you?

To save the world, globalists on Capitol Hill seem to believe Americans on Main Street should welcome state approved robbery. The Washington-run Empire, like all past empires, impoverishes millions of its people for the grand cause of power, status, and the flow of wealth. Remember, most of the imperialists on Capitol Hill are millionaires.
Anyone familiar with the history of bailouts funded by the federal government (including the Federal Reserve) knows this has been going on for decades.

In one sense, global economy is just another nice but deceptive phrase for the increasing reach of American economic empire. It appears that the goal of Democrats is to increase the burden of empire to the point of America’s bankruptcy.

That is one important factor that led to the decline and fall of the Roman Empire.

Are the elites among the Republican Party any different? I doubt it. Can you remember any America president or Congressional majority ever proposing to end the American military presence around the world? Only Ron Paul proposed such a thing. Doing so would put billions of dollars back in the pockets of Americans. A large scale-back of U.S. military’s global presence would also mean leaving America’s global corporation vulnerable to the dictates of foreign governments and the interests of their people. Not that the wealth given to foreign government by American corporations is used to prosper all of their citizens, but its does keep foreign dictators willing to dance to America’s green tunes. Think of how much that would save taxpayers if Congressional politicians were not so willing to travel to all of those subjected nations.

I know; we are the leader of the world. World peace and prosperity is dependent upon our government. Millions at home and certainly abroad are still are wondering when real peace and prosperity will be achieved. Maybe the elite’s utopian vision is flawed. Just consider the achievements of that bastion of global peace, the United Nations–not very impressive. No lasting peace in Israel, genocide in Sudan, massacres in Africa, wars in the Middle East, Europe, Central America and elsewhere, and now terrorism. Don’t misunderstand me, sincere efforts toward peace are honorable, but repeating failed policies and strategies of the past is to demonstrate stupidity.

Again, the lessons of failed empires of the past demonstrate egalitarianism, multiculturalism, moral relativity, immorality, and much debt are all co-factors in what social scientists call structural violence, which includes poverty. The peace waged by all empires has been most won and maintained by the merciless power of their armies. Empires have never been very effective at creating real peace or prosperity for masses of non-elite peasants. America is no exception.

American exceptionalism inherited from its founder’s vision has been fading away for a long time. Maybe it’s not too late to revive it.

Ohioans ready for Big Fixes

On July 28, the Buckeye Institute released a statewide poll of 1,800 registered voters that shows Ohioans are at odds with their government leaders on the major issues of the day, especially regarding government compensation, regulations, and Ohio’s pro-union policies. Magellan Data and Mapping Strategies of Broomfield, Colorado, conducted the poll on July 19, 2010, via an autodial survey of registered voters from across Ohio. Because of the large sample, the survey has a margin of error of 2.31%.

Here are some top-line numbers:

·    50% think government leaders should first reduce government worker
     compensation to eliminate the $8 billion budget state deficit;

·    Only 16% think taxes should be increased to eliminate the Ohio deficit;

·    52% think Ohio’s state and local taxes are too high;

·    56% think Ohio’s regulatory environment makes it harder for businesses to
     create jobs and grow;

·    85% think workers should be free to choose whether to join a labor union to get      jobs;

·    67% think we should stick with coal or add nuclear and natural gas energy.

Source: Buckeye Institute Reports, August 9, 2010.

Statewide Poll of 1,800 Registered Voters Shows Ohioans Ready for Big Fixes

The Buckeye Institute for Public Policy Solutions today released a statewide poll of 1,800 registered voters that shows Ohioans are at odds with their government leaders on the major issues of the day, especially on government compensation, regulations, and Ohio’s pro-union policies. Magellan Data and Mapping Strategies of Broomfield, Colorado, conducted the poll on July 19, 2010, via an autodial survey of registered voters from across Ohio. Because of the large sample, the survey has a margin of error of 2.31%.

Here are some top-line numbers:

· 50% think government leaders should first reduce government worker compensation to eliminate the $8 billion
budget state deficit;
· Only 16% think taxes should be increased to eliminate the Ohio deficit;
· 52% think Ohio’s state and local taxes are too high;
· 56% think Ohio’s regulatory environment makes it harder for businesses to create jobs and grow;
· 85% think workers should be free to choose whether to join a labor union to get a job; and
· 67% think we should stick with coal or add nuclear and natural gas energy.

Other than for government workers who think cutting compensation and cutting services are equally appealing, every other demographic group chose cutting government compensation as the top choice to cut the deficit. Except for one group, every demographic group thinks Ohio’s taxes are too high by a majority or plurality.

On Ohio’s regulatory environment, every demographic group by a majority or plurality feels our regulations make it harder for businesses to create jobs and grow. The most stunning result is that all demographic groups support a worker’s freedom to choose whether or not to join a union to get a job with all but five groups polling at over 80 percent. A whopping 93% of Republicans, 87.7% of Independents, and 77.2% of Democrats want workers to have the freedom to choose.

Buckeye Institute President Matt A. Mayer noted, “It is clear Ohioans believe that business as usual is not sustainable. As always, common sense Ohioans are ahead of the politicians. I hope our elected officials follow the people and don’t just say, but do the right thing to get Ohio growing and prosperous again.”

Centers for Medicare & Medicaid OKs Additional Payment to Ohio Hospitals for Medicaid Expenses

After lobbying from Gov. Ted Strickland, officials at the federal Centers for Medicare & Medicaid Services have given the go-ahead to a state plan to pay hospitals an additional $87 million this year for the care they provide to low-income Ohioans on Medicaid (Source: “Feds OK plan to let hospitals recoup Medicaid expense,” Columbus Dispatch, July 15, 2010).

The bulk payment, which will be disbursed to hospitals by the end of this month, and a 5-percent increase in Medicaid reimbursement fees effective in October were included in last year’s state budget to let hospitals recoup some of the money they were losing through a new state franchise fee.

The fee is projected to cost hospitals statewide $718 million over the two-year budget ending June 30, 2011. The two provisions aimed at offsetting that expense will let hospitals recoup $569 million, according to the Ohio Hospital Association.

Source: Ohio Health Policy Review, July 16, 2010.

Rep. Steve Austria on Blue Ribbon Commission

It is important now, more than ever, to focus on how our region can be more competitive and bring additional jobs to Ohio. This week,  I joined members of the Blue Ribbon Commission at a meeting held at Wright State University. I appointed the commission to examine how local companies and universities can better position themselves to win more contracts, create more jobs and support Wright Patterson Air Force Base, one of the largest single site employers in the state. It is made up of a broad cross-section of talented and energetic community leaders who have extensive experience both inside and outside the fence, including business leaders and individuals in academia.

When the commission was formed, members were tasked with submitting their recommendations for increasing the number of contracts awarded to local companies, in turn creating more private-sector jobs in the area that can be sustained for years to come. They were asked to look into a wide variety of issues including identifying any impediments to local companies and determining the best business model to receive contracts.

The commission has completed its work and identified 18 specific ways we can enhance regional economic opportunities through partnerships with the business community, academia and government in the Dayton area. John McCance, who is retired Air Force, and Gary Kowal, who has several years of experience in defense contracting, served as co-chairs of the Blue Ribbon Commission and presented the commission’s findings, conclusions and recommendations to the public. Some recommendations highlighted in the report include,

* Utilize social media (a website, or collaborative networking site) to house centralized information to include such items as a calendar of events; detailed information on government requirements; prime/sub contractor opportunities and links to related informational sites.

* Leverage the region’s engineering capabilities and skill base to accelerate subcontractor opportunities with large defense contractors who are involved in the research, development and manufacture of weapon systems acquired by WPAFB.

* Publish the “Corporate Development Education Framework” as a tool to help beginning, intermediate and advanced businesses assess their government contracting maturity and identify areas for improvement.

* Establish a centralized electronic capability for local area businesses having service, R&D, manufacturing, and other capabilities to provide detailed information about their qualifications, capacity and contact information and have it indexed by product and service.

* Encourage the State of Ohio and local governments to support a program, similar to the State of Utah, which provides funded support in the areas of opportunity assessment, strategy, proposal development, contract negotiations, capture and program support.

* Provide access to additional resources and training in the area of proposal writing and preparation.

Economy Continues to Struggle One Year After Biennial Budget

By Jarrod Martin, State Representative

As we are all well aware, Ohio’s economy has continued to struggle while other states have seen a slight economic rebound. Unlike many of our neighbors, our economy cannot grow because our tax rate is so high. If we were able to lower taxes, small businesses would have more income to hire new employees and businesses across the state would expand because Ohioans would be spending more. However, House Democrats raised taxes in 2009 and passed a budget last July that will cost the taxpayers for years to come.

The biennial budget, which passed in 2009, increased spending by $1 billion in 2010 and $950 million more in 2011. Tax revenue alone cannot fund this budget nor repair the state’s deficit. The Office of Budget and Management projected that the state’s tax revenue will grow by $974 million in the next two years, but will not reach the $5 billion necessary to replace the losses from this budget’s out of control spending.

To otherwise fund this spending, the governor proposed 150 new fees that will take nearly $1 billion from the wallets of the taxpayers. Additionally, the budget usurps $8.5 billion from one-time sources that could have been more wisely spent. On top of these sources, the state received $900 million more from the taxpayers after Ohio’s Democrats passed House Bill 318, which repealed the final installment of the income tax reductions and raised your 2009 income tax rate by 4.2 percent.

With the government reform initiatives my Republican colleagues and I proposed, the state would have saved more than $1 billion annually. Our proposals include legislation to streamline the bloated executive branch and to weed out wasteful Medicaid spending. We found areas where we can painlessly eliminate excess spending; however, the House Democrats decided to cut spending from the areas that need funding the most, including education and elderly health care programs. Their shortsighted moves will jeopardize important programs and will not pay off in the long run.

Raising my three children in Beavercreek, I frequently think about their future here in Ohio and whether there will be enough incentives for them to stay when they are considering colleges and careers. I fear that our state will not grow jobs and hold as many economic opportunities for them if we continue to overspend and burden our taxpayers. All parents hope that their children will have as many opportunities-if not more-than they had, and I would like to do my part to make this a reality for all of our children in the Buckeye State.