Thankyou for this news article. Concerning the economics system, I’ve learned alot over the past three years how and why the wheels of economics spin the way they do. Ron Paul, Governor of Texas, and others who used to work at various levels in the Federal-Reserve have known for ages, that the Federal-Reserve could roll in profits, without charging income-taxes at all to workers.
There is absolutely no law whatsoever in the U.S. Constitution, which says that workers are required to pay income-taxes. Corporations are required to pay income-taxes, but not workers for a business or corporation.
The income-taxes which IRS thugs do extract from American workers does not pay for goods-and-services, as they are mentally-conditioned to believe.–Not one cent! Income-taxes only go to pay the interest on the Congress’ debt. Apparently, even a fair number of governors and senators don’t know alot about the Federal-Reserve, because it never has been audited.
Few Americans understand that the Federal-Reserve Act was passed, deceitfully and illegally. The way they went about pushing it through, was by secretly voting it in during Christmas recess, when most of the congressmen and senators were not in Washington.–And had no idea that this dirty deal was being made. It all happened in 1913, and passed by 1 vote.
The most corrupt thing about the U.S. economics system is, that Americans are led to believe that the Federal-Reserve is a Federal Government Bank, when in reality, it is a private corporation, along with the other Central Banks. The whole U.S. economy is being run by European private-Bankers.
Since the IRS never supplied any of their own employees who asked to read the law, if there is one, there are over 60,000 Americans, including many former IRS agents who stopped paying income-taxes.–And although many Americans have been bullied, some beaten, jailed and intimidated, more citizens who are learning about the Law and their Constitutional-Rights.–And winning their cases in court!
This is a blog of Edward Griffin, who explains anything people want to know about Jekyll Island, where the FED dirty deal was done. However, at the top of the page is the link, where Jacques Fresco explains what is going on with the Venus Project. In four years, half a million of us are onboard to build a world-wide society, which will do without money. Money does not do anything but pollute and waste the environment, restricts access to goods-and-services, and wastes manpower.
There is no need to buy, sell, rent anything. The only way to reduce crime is to reduce poverty, disease, and allow open free-access to education to everyone. All the doubts and skepticism people have had against the Venus Project, is only coming from high-income entreprenneurs and people who think the world will run out of resources. LOL!
The last point I will make about the monetary-system is that, banks have different ways to generate revenue on loans, without charging interest-rates. Warren Buffet is the jail-bird with big-bucks, but I’ll bet his prison was like a 5-star hotel compared to where they house mainstream population.
It’s nice for Buffett to rant on about how nice and decent the mega-rich are. They are so pampered by their level of social-status, that they can smile and laugh, everytime NATO bombs Libyan civillians and their stocks sky-rocket with every bomb, every bullet and missile. Warren Buffet, the Rockefellers, Kissinger and the Clintons just go about enjoying their exploitation, torture, rapes and massacre of slaves anywhere in the world they want to attack. They don’t have a clue what it feels like, to have bombs blowing their walls, ceilings, floors and bodies hundreds of feet in every direction.—So, they can just be such really nice, decent people!
On Mon, Aug 15, 2011 at 5:27 PM, veracare <veracare> wrote:
Alliance for Human Research Protection
A Catalyst for Debate
THE NEW YORK TIMES
August 14, 2011
Stop Coddling the Super-Rich
By WARREN E. BUFFETT
OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.
To understand why, you need to examine the sources of government revenue. Last year about 80 percent of these revenues came from personal income taxes and payroll taxes. The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes. It’s a different story for the middle class: typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot.
Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.
I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.
Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate income of the highest 400 had soared to $90.9 billion — a staggering $227.4 million on average — but the rate paid had fallen to 21.5 percent.
The taxes I refer to here include only federal income tax, but you can be sure that any payroll tax for the 400 was inconsequential compared to income. In fact, 88 of the 400 in 2008 reported no wages at all, though every one of them reported capital gains. Some of my brethren may shun work but they all like to invest. (I can relate to that.)
I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.
Twelve members of Congress will soon take on the crucial job of rearranging our country’s finances. They’ve been instructed to devise a plan that reduces the 10-year deficit by at least $1.5 trillion. It’s vital, however, that they achieve far more than that. Americans are rapidly losing faith in the ability of Congress to deal with our country’s fiscal problems. Only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality.
Job one for the 12 is to pare down some future promises that even a rich America can’t fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.
But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.
My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.
Warren E. Buffett is the chairman and chief executive of Berkshire Hathaway.
Contact: Vera Hassner Sharav