Employers Take a HIT - Health (Provider) Insurance Tax

Here's a hidden tax almost everyone missed.  This year alone ObamaCare raises taxes on all Americans by EIGHT BILLION DOLLARS by adding an eight percent tax to all Employer' Provided Insurance Plans.

Guess what! Much of this cost is passed on to employees and the rest of it to customers.

Here's the story in a very interesting format, from National Public Radio:

Just a Reminder: YOU Pay for Every Obama Phone

Somehow a vast number of Americans believe the "Government" pays for certain things (or many things).  This, of course, isn't true.  The "Government" actually pays for absolutely nothing.  Either we taxpayers pay the bill through our taxes or, more increasingly, the government borrows the money and pays using these borrowed funds.  Either way we are ultimately on the tab.

But the phenomena of the "Obama Phone" has gone viral this campaign season.  This program, begun long before Obama even thought of running for President, was originally designed to help poor rural citizens pay for telephone service and to encourage the telephone companies to extend telephone lines to remote areas.

For reasons that defy understanding, a few years ago (again before Obama was President), the program was expanded to provide cell phones to virtually all low income people nationwide.

It is curious how some enterprising salesmen and telephone resellers have renamed the program the "Obama Phone" implying the President deserves full credit for providing cell phones to millions. Check out this URL: www.obamaphone.net

Assuming that you are NOT one of the low income people receiving an Obama Phone, you are paying for them!  You are on the hook for millions and millions of cell phone bills!  And the program is absolutely EXPLODING.

I want to emphasize that this isn't Warren Buffet or the multimillionaires paying, it's virtually anyone who uses a telephone.  It is an egregiousness TAX on lower income and middle income people.

Here's HOW YOU PAY: The program is funded through the “Universal Service Fund” charge on phone bills — usually a dollar or two per bill per month — and the amount of the fee is determined by the cost of this and other programs. In other words the more people given the supposedly "FREE" Obama Phones the higher YOUR PHONE BILL RISES!!!

A growth of $100 million in this program could result in an increased fee of a few cents on the average bill, according to officials from the agency that administers the program. The total cost of the program nationwide was $1.5 billion in 2011, up from $1.1 billion in 2010.

Today, thanks to the viral You Tube Video requests for the phone have also gone viral! Costs could jump to over $2 billion by the need of this year.  You phone bill could jump to by another $2.00 a month.

Just remember the government pays for absolutely nothing.... ever.  Every government program is ultimately paid by individual citizens.
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Certainly an interesting question is, "Will FREE Obama Phones throw the election to President Obama?" There is a reason its illegal to provide financial incentives to voters.  But keep in mind that the President is not doing that.  This program began and expanded long before Obama became President.

But it is now always called "Obama Phones" and over 1,000,000 (one million) OHIO residents alone now receive Obama Phones.  That's more than enough votes to sway the election.  What if Mitt Romney is right?

This article in The Dayton Daily News was certainly helpful in preparing today's blog entry.  Read it in full and you decide: 1 million Ohioans using free phone program

The photograph above is of Ohio resident Aliesa Azbill and was taken by Chris Stewart.  It is from the Dayton Daily News article.

Obama's Bone Headed Tax Strategy

STORY ONE:  Obama Plans to Triple Dividend Tax Rate to nearly 50%

STORY TWO:  Britain's 50p Tax Rate Hike Backfires - Revenue's Drop Dramatically

While Republicans Mitt Romney and especially Rick Santorum attempt to hand President Obama his reelection on a silver platter, President Obama continues his tone deaf and strangely self destructive approach to governing with a massive proposed tax hike that would hit vulnerable senior citizens hardest.  And, history clearly shows, it's a plan that will not work or raise revenues for the government.

As all my Twitter friends are saying, "WTF!!!"  (I'm sure they mean "Win the Future." Yeah, that's it.)

Been there, done that.  By raising Dividend Tax to an insane rate without also raising Capital Gains Tax, companies simply stop issuing dividends and instead plow the same money into stock repurchase plans, effectively turning the returns into Capital Gains.  The graph to the right shows the actual history of this effect in reverse.  Once we dropped the dividend tax rate in 2002, dividends increased dramatically as did tax revenue.

In STORY TWO above, we also see this type of tax increase in the "rich" also always backfires, driving investment, earnings, citizenship and tax revenues downward.  Instead of raising revenue, Great Britain has learned such tax rate increases actually reduce revenue.  There is plenty of historical evidence in the United States that proves the same thing.

Now (and I'm bracing for the attacks I will receive), we are actually harming the country more by totally exempting 50% of Americans from paying any income tax at all and reducing further their contributions to social security and medicare.  All of this is a plan to fail.

Today's it's hard to see how President Obama can lose in November, but he certainly is working to find a way.

P.S. No matter what the pundits are saying today, the gas price increases are absolutely killing the economy.  I'm on the front line and I can see it clearly.  Remember, you heard it here first.

We Seriously Need A Better Quality of Protester

File under Tea Party Protester Envy.


Ann Coulter wrote a devastating column in which she was 100% correct. Colter wrote (in part):

"I am not the first to note the vast differences between the Wall Street protesters and the tea partiers. To name three: The tea partiers have jobs, showers and a point."

"Tea partiers didn't block traffic, sleep on sidewalks, wear ski masks, fight with the police or urinate in public. They read the Constitution, made serious policy arguments, and petitioned the government against Obama's unconstitutional big government policies, especially the stimulus bill and Obamacare." 

"Then they picked up their own trash and quietly went home. Apparently, a lot of them had to be at work in the morning."

Damn but Coulter is right. The Tea Party folks had literally hundreds of individual protests and involved hundreds of thousands of protesters with virtually no arrests, no destruction of property and organization and cleanliness that was stunning.  Most parks, streets and protest venues were left cleaner than before the protests began.


The Occupy Wall Street protests are now limping across America, but have no logic, no intelligent commentary and virtually no point. But there are plenty of arrests and tons of garbage and filth.

Videos abound showing the tragically uninformed protesting the banks and bankers, the wealthy and super rich and the high price of broccoli. Demands include, but are not limited to forgiveness of all debt, especially student loans and all mortgages, guaranteed jobs for everyone at high wages, and that all retirees can vacation in Cancun (no joke).




Some rally around President Obama, others call him a traitor. Many call for the overthrow of the government and the abolition of capitalism.


What's even more frightening is how many Democrat politicians and pundits have endorsed their cause, what ever-the-hell that might or might not be. Even President Obama and Vice President Biden have added their voice of support. Nancy Pelosi, who we must remember was terrified of the law abiding Tea Partiers, Has heartily endorsed the Occupy Wall Street Crowd and many other Dems have given them moral support.

Keith Olbermann is their biggest and most visible supporter. I guess he's praying he can become to the Occupy Wall Street crowd what Glenn Beck was to the Tea Partiers and ride the movement to giant protests and a television special on the capital mall. The problem is Olbermann has to carefully chose his interviews and generally supply meaning and message when none is actually there. If only the entire rest of the national media had stayed away and hadn't reported the truth about the protests. Alas, Olbermann look more like an idiot with each passing day.


The final insult is that, in order to move the protests nationwide, politicians and union members have had to print up signs and then pay illegal immigrants and out of work union members to carry the signs.  Many of the pseudo-protesters do not speak English and have no idea what the signs even say.

Actions Speak Much Louder Than Words

I realize that my fellow Liberals and Progressives just can't see it, but the major media, the blogosphere and the Twitterverse are dominated by progressive and liberal voices. Those voices tend to be very articulate, passionate and, at times, overwhelming.

Skeptics are often shouted down in comments sections at the Daily Kos or The Huffington Post. Nay-sayers are ridiculed, called cruel or hateful or racist. Of course such skeptics usually sulk away and watch a few hours of Fox News to repair their egos. The result is the remaining progressive voices reinforce themselves, rising to a tidal wave of liberal thinkspeak.

What is lost is any real understanding of opposing thought. If you never listen to opposing views, never try to understand other ideas, concepts or solutions, you remain stuck in a quagmire of groupthink viewpoints.

Such groupthink cacophony insulates and isolates many government officials, too. As a result they find themselves both unable and unwilling to "think outside the box" to solve economic issues. The result is the fascinating migration of people from union dominated, taxation heavy, goverment controlled states to the freedom, low taxes and robust economies of conservative states.

From today's Washington Examiner: Low-tax states will gain seats, high-tax states will lose them

"Migration from high-tax states to states with lower taxes and less government spending will dramatically alter the composition of future Congresses, according to a study by Americans for Tax Reform."

"Eight states are projected to gain at least one congressional seat under reapportionment following the 2010 Census: Texas (four seats), Florida (two seats), Arizona, Georgia, Nevada, South Carolina, Utah and Washington (one seat each). Their average top state personal income tax rate: 2.8 percent."

"By contrast, New York and Ohio are likely to lose two seats each, while Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania will be down one apiece. The average top state personal income tax rate in these loser states: 6.05 percent."

"The state and local tax burden is nearly a third lower in states with growing populations, ATR found. As a result, per capita government spending is also lower: $4,008 for states gaining congressional seats, $5,117 for states losing them."

"And, as ATR notes, “in eight of ten losers, workers can be forced to join a union as a condition of employment. In 7 of the 8 gainers, workers are given a choice whether to join or contribute financially to a union.”

"Imagine that: Americans are fleeing high tax, union-dominated states and settling in states with lower taxes, right-to-work laws and lower government spending. Nothing sends a message like voting with your feet."

The 2,000 Page Nightmare

Only now are accountants, government officials and government agencies like the IRS unraveling the massive Health Care Reform Law. And only now are we beginning to understand the consequences of taxation and regulation included in the bill.

In three short words: It's a Nightmare.

I genuinely believe that we must never allow Congress to enact to two thousand page bill again. And I believe that every single member of Congress who voted for this monstrosity should be removed from office.

We will spend months, if not years, undoing the damage this bill has done. But that's if, and only if, our country survives the interim damage.

Small business had feared the actual Health Care requirements would damage business and profits. As it turns out the most severe damage is coming from a new, massive ($$$$ 17 BILLION DOLLARS $$$$$) that will devastate all Americans earning LESS THAN $250,000.00 a year. And small business as we have long known it will likely cease to exist.

The small hidden regulations sound simple enough. Families and business have long been requires to report on an IRS Form 1099 any monies paid to workers or independent contractors. Money paid to nannies or yard workers for example had to be reported to the government. Many a politician has been tripped up by his or her failure to properly document such payments.
But, under new regulations in the Health Care Reform Act, all people and businesses must also file an IRS Form 1099 for and purchase of goods or material from a single individual that totals a mere six hundred dollars ($600.00) per year or more. For many businesses this could be tens of thousands of such forms (and taxes). Imagine a small restaurant who buys lettuce, tomatoes, fruits and vegetables from a variety of local farmers. Or a grocery store.

But similar situations apply to virtually all small businesses. The loudest complaints are streaming from Gold bullion and coin dealers who buy and sell from the public all day long.

In an article today on the ABC NEWS Website they report that "...every time a member of the public sells more than $600 worth of gold to a dealer the transaction will have to be reported to the government by the buyer (in this case the small business)."

Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.

With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect."
Rep. Daniel Lungren, R-CA, has introduced legislation to repeal the section of the health care bill that would trigger the new tax reporting requirement because he says it's a burden on small businesses.

"Large corporations have whole divisions to handle such transaction paperwork but for a small business, which doesn't have the manpower, this is yet another brick on their back," Lungren said in a statement e-mailed to ABCNews.com. "Everyone agrees that small businesses are job creators and the engine which drives the American economy. I am dumfounded that this Administration is doing all it can to make it more difficult for businesses to succeed rather than doing all it can to help them grow."

That's an understatement, Mr. Lungren.