Posted by: The Dauntless Conservative | May 6, 2012

An explanation why Reagan’s tax cut plan worked.


A while back, I posted my analysis of Reagan’s tax reform here:

https://thedauntlessconservative.wordpress.com/2010/09/01/the-reagan-tax-cuts-lessons-for-tax-reform/

Today, I am going to dig a little deeper and dispel more myths from the demoncrat party. While obamarx trashes Reagan with his tax increases,  he and demoncrats are wrong to use this fact to justify raising taxes. While it is true that Congress passed some tax increases during the Reagan administration, the socialist left try to use the tax increases that Congress enacted to discredit Reagan.  What they fail to to understand is which taxes have the most economic impact and the ones with the least economic impact, which I will try to explain. As a sitting president, Reagan could not always get what he wanted. It must be emphasized that Congress and Reagan were much more congenial in negotiating tax reform than they are today. It is more polarizing today.

They are summarized and available from the U.S. Treasury here in a PDF file:

REVENUE EFFECTS OF MAJOR TAX BILLS

http://www.treasury.gov/resource-center/tax-policy/tax-analysis/Documents/ota81.pdf

Here is the tax cuts that I would argued that got economy rolling and why:

Economic Recovery Tax Act of 1981 phased-in 23% cut in individual tax rates; top rate dropped from 70% to 50%; accelerated depreciation deductions; replaced depreciation system with ACRS; indexed individual income tax parameters (beginning in 1985); created 10% exclusion on income for two-earner married couples ($3,000 cap); phased-in increase in estate tax exemption from $175,625 to $600,000 in 1987; reduced Windfall Profit taxes; allowed all working taxpayers to establish IRAs; expanded provisions for employee stock ownership plans (ESOPs); replaced $200 interest exclusion with 15% net interest exclusion ($900 cap) (begin in 1985).

Tax Reform Act of 1986 reduced individual income tax rates (top rate 28%) and repealed capital gains exclusion; lowered corporation income tax rates; top rate lowered to 34 percent; increased personal exemption amount from $1,080 to $2,000; set uniform capitalization rules for manufacturing or construction.

The above mentioned WERE KEY CUTS that were important to the average investor…even the average Joe or Mary Sixpack with a 401k at his/her workplace. Depreciation acceleration increases REVENUE for CORPORATIONS by increasing the depreciation expense, which is a write off on their IRS Form 1120 or Schedule C. Couple that with incentives for the average Joe as well as the wealthy to INVEST and whaddayhave? The booming ’80s and ’90s. The socialist left fail or refuse to see this. This drove the economic expansion.

Regardless of the amount of the tax increases, a tax increase in any shape or form is less money in the market place that could be put to work…a simple concept that the communist/socialist/democrat/left cannot comprehend.

A few metrics the socialist left ignore or refuse to accept is a Federal income/corporate tax cut/increase is not just that simple. There are many other types Federal taxes other than income.

Go to: http://www.irs.gov/taxstats/article/0,,id=188060,00.html

Scroll down to table 23 and 24. Notice in the Reagan years the change income levels and tax rates tagged to the income levels and compare them to the previous years. Take look at the Reagan years and notice the income level changes along with the rate changes? Income level changes that went along with the tax rate change (up or down) played a critical role. More ‘average Joes received a tax incentive to invest….well whaddayaknow….an economic boom.

The socialist left worship the state and the state is their milk. The left fails or refuses to understand the power of human creativity even in the most adverse economic conditions.

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Posted by: The Dauntless Conservative | May 6, 2012

An explanation of why jobs are not being created.


I will attempt to give my analysis as to WHY the economy is not creating jobs at the rate that is should: There are four things that are holding back job growth: (1) the unexpected consequences of obamacare: with so many business asking for exemptions and business fear for the economic impact on their businesses. The Daily Caller just reported a story about how companies could drop their private health plans in lieu of obamacare. (2) The expiration of the Bush tax cuts (which I explained here:  https://thedauntlessconservative.wordpress.com/2010/08/14/bush-tax-cuts-worked/)the extensions will be ending in Dec 31. That will be a big blow to small businesses. Demoncrats and obamarx being what they are will never approve of a tax cut. (3) QE2 and QE3: the Fed eral Reserve is fleecing the USA. This action by the Federal Reserve has helped drive up the price of oil; investors would rather trade oil than US dollars. (4) The price of crude: until we kick this potus out of the White House and demoncrats out in the Senate out in November, we may never see a substantial drop in oil/gasoline/diesel. More could be said, but I hope you get the point. This is just a brief synopsis; I will try to expand on these four points at a later time.

Posted by: The Dauntless Conservative | April 19, 2012

obama Debt Update



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I have heard so many on both sides of the isle comment about obamarx’s debt. All of them are wrong. So, let’s go straight to the obvious source, the Bureau of Public Debt. As of April 18, obamarx and co have run up over $3.7 Trillion of debt since obamarx’s first fiscal year. The federal gov’t fiscal year ends on September 30 and begins Oct 1. When a new president takes office on January 20, the budget for the new administration does not start until Oct 1, the new FISCAL YEAR. (click on image to for closer view)

SOURCE: Bureau of Public Debt  http://www.publicdebt.treas.gov/

Posted by: The Dauntless Conservative | April 3, 2012

Who really pays the most Federal income tax? Part 2


The IRS has recently released a compilation of the Individual Income Tax Rates and Shares for 2009. Not a whole lot of comment is needed because the numbers speak for themselves. Contrary to obamarx and company,  the leftist media, the so-called “rich” are still getting robbed with the highest tax burden. The hard proof is here from the IRS:

http://www.irs.gov/pub/irs-soi/09inratesnap.pdf

Isn’t it rather paradoxical that we have laws against discrimination based on race, creed, color, sex, gender…and yet we discriminate based on income? Nothing has divided us like the 16th Amendment. While I don’t think the 16th Amendment will be going away anytime soon, the best we can do for now is serious tax reform. If we go for a flat tax, I would approve of a 3-5% and not a dime more. First of all, while Congress does have the Constitutional power to tax, and justly so, after all Congress has an enumerated power to maintain and Army and Navy, but not all this social crap we have been carrying around since FDR. But I don’t think they have a right to take no more than what I suggested. That way, we have the lower 50% that don’t pay Federal tax, WILL be paying. We don’t need to raise taxes, just make the lower 50% pay. When you add up your Federal, State and local, sales, property taxes, the average taxpayer is paying too much.

I’ve got two words for obama; “You lie!” (quote for Rep Joe Wilson)

Posted by: The Dauntless Conservative | March 30, 2012

New Black Panther party offers $1 mil for Zimmerman


The national media and democrats are sick to let these communist goons threatened Mr. Zimmerman. This is against the law and a felony. Where is Eric Holder? Where is obamarx?

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Posted by: The Dauntless Conservative | March 3, 2012

Oil companies have small profit margins


I was watching the O’Reilly Factor a couple of weeks ago or so and during the show, the talented Monica Crowley and Billy O’Reilly had a heated exchange about oil company profits. Billy O’Reilly vehemently disagreed that oil companies have small profit margins. Contrary to Billy’s assertion, he is wrong.  So is obamarx and company.  These two clowns need to understand what profit margin is. From Investopedia:

“A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Profit margin is displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales.”

Source:

http://www.investopedia.com/terms/p/profitmargin.asp

We do not need a sitting POTUS to attack an industry that provides valuable product to the market. This POTUS needs to be literally kicked out of office. Here is a sample of the kind of rhetoric America does not need.

http://www.wishtv.com/dpps/elections/president/obama-seeks-to-shore-up-support-in-new-hampshire-nt12-jpe_4089552

Oil industry profit margin ranks fairly low.

http://seekingalpha.com/article/269679-oil-industry-profit-margin-ranks-fairly-low-there-are-bigger-fish

Here is a few of the top oil companies financials below. You can find their financials at many financial websites.

For Exxon Mobile as of Dec 31 2011:

Profitability:

Profit Margin (ttm):          9.47%

Operating Margin (ttm):               12.48%

Source:

http://finance.yahoo.com/q/ks?s=XOM+Key+Statistics

For Chevron Corp

Profitability

Profit Margin (ttm):        11.38%

Operating Margin (ttm):               16.21%

Source:

http://finance.yahoo.com/q/ks?s=CVX+Key+Statistics

For British Petroleum

Profitability

Profit Margin (ttm):        6.84%

Operating Margin (ttm):               8.31%

Source:

http://finance.yahoo.com/q/ks?s=BP+Key+Statistics

Posted by: The Dauntless Conservative | January 2, 2012

The truth about Republicans


…contrary to pop culture…

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Many thanks to the producers at PJTV.

Posted by: The Dauntless Conservative | December 31, 2011

The clown president


Wow. Hugo Chavez calls obama a clown. How ironic.

Excerpt:

Hugo Chávez blasted President Barack Obama as a “clown” and an “embarrassment” who has turned the United States into a “disaster” after Obama criticized Venezuela’s ties with Iran and Cuba, according to a report Tuesday. Chávez’s comments came in the wake of Obama’s Monday written interview with the Caracas paper El Universal, where the U.S. president questioned Venezuela’s connections to those countries. Chávez hit back strongly at Obama on state TV Monday, according to The Guardian, saying the president gave the interview only to “win votes” in the 2012 election.

http://www.politico.com/news/stories/1211/70694.html

 

Posted by: The Dauntless Conservative | December 28, 2011

democrats according to Bob Hope


Posted by: The Dauntless Conservative | October 16, 2011

The Communist Party USA in Chicago


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The democrat party has become a front the Communist Party USA. There is nothing “democratic” about their movement and nothing “fair” either. Just ask anyone who fled the USSR and what was once Eastern Communist Bloc European countries. Many of these protesters were not even born when the Cold War ended and are clueless as to what communism really is. See my post prior to this titled ” Nazism is a form of socialism and is LEFT WING”.

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http://www.cpusa.org/save-the-nation-tax-corporations-tax-the-rich/

http://www.cpusa.org/solidarity-with-occupy-wall-street/

http://www.cpusa.org/communist-party-heralds-occupy-wall-street-movement/

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Many thanks to the producers.

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