U.S. Business Has High Tax Rates but Pays Less

The United States may soon wind up with a distinction that makes business leaders cringe — the highest corporate tax rate in the world.

But few corporations pay at that high rate.


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Throw the Rascals Out - Clean Sweep

I am pretty sure that our nations political leaders will strike a bargain to keep the country from defaulting. It may just be a deal to kick the decision down the road, or they may reach a decision that will bring the budget back into balance.  The budget was balanced for a few years during the Clinton administration. It is tougher now though because the recession is so deep and our country is aging with fewer current workers to pay for the elderly and poor.


The correct deal involves both painful program cuts and tax increases. Not fun or easy but must be done.


In the event they do not reach a deal I think we should throw the rascals out - Democrats and Republicans.  We need some pragmatic people in government.

Collins on the Left, Brooks on the Right

Gail Collins on the left, David Brooks on the Right, Two of my Favorite Columnists.

Gail Collins:    I know you like Paul Ryan and let me throw in some praise for him. I agree with the people who say he was brave to open up this conversation. Although it appears now he did not actually appreciate that the voters were going to hate, hate, hate his idea. So maybe a combination of brave and out of touch.

David Brooks: I agree, this is mostly about Medicare. I also believe it was entirely predictable. It’s not exactly a secret that touching Medicare in any way is deeply unpopular with voters. The average American, earning the median salary, pays about $150,000 into Medicare over the course of their career. They get back somewhere in the neighborhood of $350,00 to $450,000 in benefits. Their grandchildren are involuntarily footing a huge portion of that gap, so naturally today’s voters want to preserve this sweet deal. The Ryan plan threatens their grip on hundreds of thousands of dollars in free money.

Click to read their discussion

Interesting Financial Blog

This is an interesting financial blog

http://www.ritholtz.com/blog/

http://www.ritholtz.com/blog/

We Are DOOMED !!! DOOMED !!!

We Are DOOMED !!! DOOMED !!!

The Federal Govmint is about to default. We are screwed!  Social Security checks won't be paid! We are in the great depression! Run for your lives! Head for the Hills! 

We Are DOOMED !!! DOOMED !!!

No we are not doomed. We are still a very affluent and successful nation. We are going through a rough patch now but things will get better.


Relax. Take a deep breath. Get a little exercise.Get out a little more.


Our govmints financial problems can be resolved by some tough program cuts and some tough tax increases. This is not rocket science. It painful but not impossible.


But you could never tell it by listening to the hand wringing.

Average Federal Taxes Paid by Income Group

My friend Fudgeman and I have had a lively debate about how much tax lower income folks should pay. He is outraged that 47% of American families do not pay Federal Income Tax.  As shown in the graph above, however, the lowest income quartile does pay something, primarily for Social Security and Medicare.

It is clear to me that we need to raise revenue or cut costs to pay for our entitlements - Social Security and Medicare. And Medicaid, Obama Care and Defense all need either cuts or increased revenue - Most likely both. Our current path is not sustainable.

In terms of program costs, Social Security, Medicare, and Medicaid have gotten out of balance because of a couple of good things - we are living longer, in part because of better medical care. And those of us in the Baby Boom era are a very large cohort - as we retire we have fewer workers behind us to pay for the Social Security and Medicare benefits.

So Congress faces a difficult task - Raising the debt limit and perhaps cutting program costs and or increasing taxes.  And cutting benefits and raising taxes is a politically difficult and unpopular thing to do.

Fudgeman, you will be happy to know that I have thought this through and I do think that lower income folks should pay at least a little income tax. But it won't raise much revenue - they don't make enough. As shown by the Chart Below, the folks closer to the bottom rung don't make enough to raise very much revenue.

Click to Read the Article

http://ntu.org/tax-basics/who-pays-income-taxes.html

Warren Buffet and the Deficit

Warren Buffett Tells CNBC: ‘I Could End The Deficit In Five Minutes’

VIDEO

by Colby Hall | 4:14 pm, July 8th, 2011

154 comments

Universally respected super-rich Midwestern gentleman Warren Buffett recently sat down for an interview with CNBC’s Becky Quick reporting from the all-powerful mogul retreat in Sun Valley, Idaho. Buffett was asked to opine on the current deficit crisis and debt ceiling conversation/quarrel/tantrum currently on the minds of politicians and media types alike, and provided a level-headed and reasonably bi-partisan assessment. No, this will not be the end of the world, he made clear, before echoing some of the words said by President Obama on this issue, asking why are we putting a gun to our heads over this?

Click to Read the Story

I think Warren is on to something. I wonder if we could make this a Constitutional Amendment?