Taxes and Debt: Obama Entraps Clueless Republicans

[Sandra]

Heavy progressive income tax

Taxes and Debt: Obama Entraps Clueless Republicans

 
 - Andy Maheshwari  Tuesday, August 2, 2011

The Proletariat will use political supremacy to confiscate all capital from the Bourgeois…In Advanced Countries, a heavy progressive or graduated income tax shall be applicable. –The Communist Manifesto, Karl Marx.

From 1848, when Marx started advocating a heavy progressive income tax, his tyrannical intentions were abundantly clear.

Although the early Marxist propaganda was intended to rally the victim proletariat (lower class) against the bourgeois (nascent middle and upper-class) to unleash a class warfare, in reality Marxism turned out to be the guiding philosophy of crony elite perpetrators to enslave the justly rich, middle-class and the poor with crushing debt and taxes.

Marx’s intentions to selectively wage war on the West with heavy taxation and central banking were neatly concealed in the phrase “Advanced Countries”, a euphemism for Western Civilization.

In 1913, when US congress passed the Federal Reserve Act and the 16th Amendment imposing a federal income tax, America was the last major Western victim of the financial terror codified in plank 2 and 5 of Communist Manifesto.

From then on, the insidious role of Federal Reserve and IRS have made the bottom 99.9% America increasingly powerless and debt ridden, while engineering enormous concentration of power and wealth among the top 0.1% well-connected cronies through regressive boom and bust cycles.

Despite the prescient warnings of Founders, especially Thomas Jefferson and later, Andrew Jackson, the American people have miserably failed to keep the vigil against Marxist infiltration of American economy and society.

In effect, since 1913, the paradox of American system is such that it is struggling to create a free-enterprise structure on a parasitic Marxist monetary and tax foundation. All such efforts are highly unstable and bound to collapse frequently, causing incalculable harm to American society.

Before 1913, Americans were already the wealthiest nation on planet by creating free markets based on a free monetary system backed by precious metals.

The American people were aware that gold and silver were fungible, providing natural and lasting stability for the dollar. This also prevented centralization and monopoly over credit creation, since the people possessed the dominant share of precious metals.

The soundness of American system was such that 10 years after the devastation unleashed by Abraham Lincoln’s civil war, when the US Congress passed the Resumption Act of 1875 making dollar redeemable in gold from 1879, the economy saw an unprecedented expansion.

By 1913, US economy was more than twice the size of Great Britain, the dominant financial and maritime power. 

On the other hand, the post-1913 era has seen relentless and tragic weakening of American society through endless nation building, price inflation, wage destruction, unemployment and unsustainable debt.  The prosperity built on brief booms of 1920s, late-1950s, mid-1980s and late 1990s did not last since the altered monetary and tax foundations were rotten to the core.

The nature of physical terror through wars and riots becomes a reprehensible reality, the nature of psychological terror through coercion, intimidation and indoctrination is often detectable, but the nature of financial tyranny is subtle, pervasive and hardest to unveil.

The powers behind financial decline are felt but not seen until it is too late in the game. This is especially true in the age of electronic money and secretive central banking.

This is the principle reason why Tea-Party is not winning the hearts and minds against Obama administration. The Marxist left and their President have been masquerading as the beleaguered brothers and sisters of middle-class and poor, while collecting obscene amounts of campaign cash from Wall Street.

Since the Clinton era, Wall Street and hedge funds have funded the Democrats at a rate three times more than Republicans. Is there any doubt on whose side crony finance is on?

Obama is brilliantly playing a double game by demanding higher taxes from the “millionaires and billionaires”, providing tax loopholes to the well-connected cronies, while waging a tax and debt war against 99.9% of American people.

The Tea-Party patriots have made some inroads in exposing the Federal Reserve as the origin of all financial and debt crisis. But they haven’t developed a coherent tax-proposal which would offset this debt burden from the middle-class and the poor and put the responsibility of federal revenues almost exclusively on the top 0.1% cronies.

The populist mood in the country is increasingly angry that the well-connected who benefited from the $16 Trillion bailouts and too-big-to-fail policies of Federal Reserve are using tax loopholes to enjoy the looted wealth. But the middle-class and working poor are suffering from high taxes, mass unemployment and crushing debt.

This elite crowd is dominated by Clintons , Gores and , bleeding heart/crocodile tears corporate-media, and hedge fund managers.

The dilemma Tea-Party patriots are facing but not realizing is that if they demand the Bush era status-quo on tax cuts, it will disproportionately benefit the top 0.1% cronies, while making little difference to the middle-class, working poor, and small to medium (S&M) businesses, the core Tea-Party constituencies.

In order to defeat this nefarious agenda, Tea-Party needs to propose its own populist version of tax cuts which reverses the wealth re-distribution back to the 99.9% S&M businesses; middle-class and working poor on whom all the debt and bail-outs were dumped.

According to IRS and Tax Foundation, the federal income tax threshold for top 1% (1.4 Million filers) starts at ~$380,000, while the threshold for top 0.1% (0.14 Million filers) starts at ~$1.8 Million annually. 

On average, the top 1% made at least $1.8 Trillion dollars annually over last few years, while the top 0.1% made $0.9 Trillion dollars annually over the same period and paid $190 Billion in taxes every year.

This means a stunning amount of money is at the very top 0.1% much of which is used to indoctrinate, subvert and subjugate bottom 99.9% Americans.

Here is the solution - The Tea-Party patriots should vigorously advocate for reforming the current 6-Tier federal income tax system in favor of a simplified 3-Tier system, with 0% tax rate for bottom 99% Americans, a 10% tax rate for top 1% Americans, and a 90% tax rate for those among top 0.1% who benefit from federal contracts, bail-outs and Federal Reserve.

This simplified federal income tax proposal will unite 100% of all the core Tea-Party constituents made of conservatives, independents and Reagan Democrats - the working poor, middle-class, S&M businesses - while curbing enormous power of top 0.1% cronies. 

This tax-proposal will also attract a sizable number of principled progressives who are deeply anguished by the corrupt bail-outs and crony capitalism at the top. 

Freedom from federal income tax for bottom 99% Americans will put Trillions in the hands of masses and businesses, wages and jobs will sharply grow, while Eisenhower era tax-rates of 90% for top 0.1% cronies will bring in several Trillions in federal revenues over the next 10 years.

Along with a balanced budget amendment by Senator Mike Lee of Utah, the Connie-Mack penny plan for spending, a far-reaching and socially conscious Tea-Party tax proposal which can rally 99.9% Americans will not only prevent the coming fiscal Armageddon, it will bring lasting peace, prosperity and freedom for America. 

Once these fiscal, tax and monetary reforms become law, they will significantly curb the concentration of power and wealth at the top, reduce crony capitalism, and open the possibility of eliminating federal income tax for all Americans. 

(The author would like to acknowledge Douglas Kellogg and Spencer Irvine of National Tax-Payers Union for one tax related link and helpful correspondence).

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