Category Archives: Finance

For Which People?

Today, the Democrats secretly unveiled their new election slogan, “For the People“. The Dims are supposedly going to focus on healthcare, infrastructure spending, and Republican corruption.

Yes, they should fix the healthcare debacle that they created. Remember Nancy and her famous justification for passing the bill, “We have to pass it to find out what’s in it!“? We found out that it benefits the few at the expense of the many. Great deal.  What the Dims want to do is double down on Obamacare as their fix.

What gets ignored in the debate about the current fiasco of healthcare is that it hurts the MIDDLE CLASS THE MOST. For those that work for a large employer, they may not have seen much of an effect, but long term the employer couldn’t give out raises because of these increases in healthcare costs.  Someone ends up paying for the increased cost and it’s the worker in the long run.  Why do you think that wages have stagnated?  More on this below.

Small business owners are hit hard if not the hardest. Some business owners have made the decision to limit the growth of the companies to stay below the 50 EMPLOYEE healthcare mandated ceiling. Above 50 employees the rules for an employer paying healthcare dramatically changes. More people could have been employed but it doesn’t make financial sense to take the step over 50 to many business owners.

What you end up creating is TWO CLASSES. Wealthy and poor. Those in the middle are burdened by the yoke of healthcare. How big of a burden is it? In real dollars I can tell you that for an individual healthcare is about $10,000.00 per YEAR. A family of 4 must spend about $25,000.00 per YEAR. And remember that’s for INSURANCE ONLY, NOT COVERAGE. They don’t tell you that you need to spend those dollar figures before your coverage starts. And in most cases, the coverage is only 80%. Another great deal.

A recent study shows that the percentage of businesses comprised of startups and small businesses is declining. Why is this? I suspect it has to do with economies of scale. Large businesses have a distinct advantage over the small company because they can negotiate for lower healthcare insurance costs as well as paying for staff to navigate the morass of regulations and taxation mandated by state and federal governments.

Why are healthcare costs HIGH and INCREASING?  With the passing of Obamacare we found out that inside of the legislation, those in the MIDDLE CLASS must PAY for those who are “UNINSURED”.  Legislation “For the uninsured people“.  Socialist wealth re-distribution.  Feels good to force working people to give their hard earned dollars to others.  Social justice from above.  Obamacare is a TAX that is buried inside of healthcare premiums.  If the Dims were honest (which is an unlikely scenario for any politician) they should have proposed HIGHER INCOME TAXES to pay for FREE healthcare “For the uninsured people“.  It would have only been a 5% to 10% increase in income tax.  Those forcibly obtained dollars would have easily provided insurance “For the uninsured people“.  Do you think a 10% income tax increase would have been popular?

Here’s that sad part.  Many in the working class have, on top of their increased healthcare costs, also LOST the equivalent of that 10% TAX.  If you didn’t get a raise or you received a smaller than usual raise since the beginning of Obamacare, you’ve fallen behind at least 10% in your yearly income.  If the business owner could have given you a 1.25% raise per year for the past 8 years of Obamacare’s existence, your pay rate would be more than 10% higher than it was before Obamacare.  Even if you get cost of living raises from now until you retire, remember you’re still losing that 10% of earnings for the rest of your working career.

Democracy (ahem SOCIALISM) at its best.

Feel better now?

Is Profit Evil?

Direct from the Democratic Socialists of America website:
We are socialists because we reject an economic order based on private profit, alienated labor, gross inequalities of wealth and power, discrimination based on race, sex, sexual orientation, gender expression, disability status, age, religion, and national origin, and brutality and violence in defense of the status quo.

Their FIRST principle is to REJECT the idea of “private profit“. From this obviously PROFIT MUST SOMEHOW BE EVIL.

One must ask, why does a business exist? The most basic reason is to produce something or provide a service and generate a PROFIT. Why would an entrepreneur take a PERSONAL RISK (financial, emotional, physical and mental health) to start a company? Again the answer is, TO MAKE MONEY.

One then must ask, how many innovations have come about where the creator never wanted to make a PROFIT?  Look around you.  Do you see anything that was produced where the company made NO PROFIT?  Do shareholders invest money into companies out of the goodness of their hearts and expect nothing in return or do they expect the company to generate a PROFIT and a RETURN ON INVESTMENT?  How many innovations have arisen from such wonderful socialist countries like Venezuela, Cuba, Bangledesh, Guyana, Viet Nam, Laos, Cambodia, or North Korea?

One might argue, what about NON-PROFIT corporations?

The PBS President Paula Kerger earned a paltry $802,978.00 in 2016. If you look at the average non-profit CEO salaries with respect to the organization’s operating budget they are compensated at about 10% of the operating budget. A non-profit with an operating budget of $5,000,000.00 pays their CEO about HALF A MILLION dollars annually. The worker bees, bless their sacrificial hearts, make considerably less.

Why do they pay the CEOs the heftiest of salaries and not a “working man’s wage“? The answer is to attract qualified talent to run the organization. For some silly reason, talented individuals want to be compensated for their time (personal PROFIT). Hmmm, strange concept.

Let’s look at just how EVIL selling for PROFIT has become and how much SADNESS and INJUSTICE it has generated in our world.  Here’s one example.

According to Fortune, in 2016 the iPhone 7 had a production cost of about $225. The phone sold for $649 which gives Apple Inc. a PROFIT OF $424 PER PHONE sold. Wowzer, an EVIL GROSS PROFIT of over 188%, that’s a lot of injustice in this world. If you look at the one year cumulative sales of iPhones in which the 7 was released, Apple Inc. shipped nearly a QUARTER BILLION iPhones. Putting that into total numbers, A QUARTER BILLION PEOPLE HAPPILY GAVE Apple Inc. $106 BILLION DOLLARS in EVIL PROFIT in ONE YEAR! That’s a buttload of dumbocratic socialist injustice.

Why would so many people give so much money to a profit generating company and make themselves so SAD?

There’s a thing called a VALUE PROPOSITION. No one forced the consumer at gunpoint to give Apple Inc. the money. The consumer HAPPILY made the trade because they believed that the VALUE of a new iPhone 7 was worth more than possessing the money that they worked for. Apple Inc. on the other hand HAPPILY sold the iPhone because at the completion of the transaction they VALUED the $424 in PROFIT more than they VALUED the produced phone.

Wait, the consumer is HAPPY to pay for the phone at the retail price and Apple Inc. is HAPPY to sell them the phone and make a profit. Who is NOT HAPPY with this transaction?

Oh the social injustice when EVERYONE is HAPPY.

The ONLY SAD thing in all of this is the HUGE number of young people who possess a DUMBOCRATIC socialist view that PROFIT is EVIL.

All Of The Left and A Few Blue State Republicans Defend The Rich

Tax the RICH!  Make them PAY!  The RICH don’t pay for enough!  Wealth redistribution!”  The cries of the PUSSY-NATION.  They are also screaming, “Keep the tax breaks for the wealthy!”  Whaaaat?

There is one part of the proposed tax plan that WACKY-LIBS and Republicans, who represent those who live in the deep blue states, are all upset over. This is the deduction of state and local taxes or SALT as some call it.  Which group of citizens does this deduction benefit the most?  Why the wealthiest of course.

Why does President Trump want this in the tax plan?  Because he says, and he is correct, that it is the FAIR thing to do.  President Trump has a mantra of “Everyone should pay their fair share“.  Look what he demanded of the United Nations.  And some of the free-loader countries listened and started paying their share.

Eliminating the SALT deduction from income used to calculate federal income tax  is getting the most push back from the Democrat controlled People’s Republik of Kalifornia, New York, New Jersey, and Massachusetts, where taxes are stifling because of all the expensive real estate and taxes to fund all of the massive freebie give-away programs. Who pays the most taxes in these most liberal of liberal states? That would be the uber rich liberals in their giant expensive mansion, the tech billionaires, and especially the real estate moguls. You know people like Donald Trump.  If you are a liberal and against the tax plan, you are for keeping the tax break in Donald Trump’s personal fortune.  Awesome.

Let’s take a look at  what the SALT deduction means to the “AVERAGE” American and how FAIR it is.

The marginal income tax in the PRK can be as high as 13.3%. In Wyoming there is no state income tax but local taxes can be up to 1%. Property tax in the PRK is 1% of assessed value. Wyoming it’s 0.62%. The median home price in the PRK is $400,000 so the property tax is $4000. The median home price in Wyoming is $200,000 and that resident pays $1240 in property tax. For comparison, let’s say each makes person earns $100,000 in income. The PRK guy pays over $6000 in state income tax. The Wyoming cowboy has NO state income tax at that level of earning.  Totaling the property and state income taxes for each person is as follows:

Mr. PRK,  $6000 state income tax + $4000 property tax = $10,000 deduction

Cowboy,  $0.00 state income tax + $1240 property tax = $1240 deduction

What do these numbers mean to the IRS?

The PRK liberal adjusts his FEDERAL taxable income DOWN by $10,000. The Wyoming cowboy only get to reduce his tax liability down by $1240. The wealthy PRK resident’s taxable income is $8760 LESS than the cowboy as far as the IRS is concerned. If we look up his federal taxes, Mr. PRK owes $15,547 at a tax rate of 17.27%. The schmuck cowboy on the other hand pays $18,047 at the higher income bracket of 18.05% (remember because he only can deduct $1240 that puts him into a higher tax bracket), all because his state is fiscally more conservative and housing is less expensive.

The Mr. Liberal PRK guy contributes $2500  LESS to the pool of money required to run the FEDERAL government than the cowboy up North even though they both make IDENTICAL SALARIES! Does that sound fair to you?  Seems pretty fair to me.

Libtards helping out the wealthier folks.  Woohoo!!!

The pushback is because of personal greed.  No one seems to care about fairness in taxation.  Republican Peter King of wealthy Long Island, New York and all the other congressmen from his state have been screaming that New Yorkers are only getting back 69% of what they pay in to the Federal government.  Wait a sec, there congressmen.  We pay federal taxes to run the COUNTRY.  It doesn’t work that you give money to federal government and then they just give it right back. WE pay federal taxes to collectively do things such as fund the military, build infrastructure, do the big things that benefit the COUNTRY.  We are all in this together.  It’s not every man for himself.  The left and blue state Republicans should think about what John F. Kennedy said in his inaugural address, “Ask not what your country can do for you, ask what you can do for your country”.

Now as a landed individual, here behind enemy lines in the PRK, I have been benefiting from the deduction. I want to thank my liberal friends for defending my tax breaks! Thank you , thank you.