by | ARTICLES, ECONOMY, POLITICS, TAXES
Food stamps cost taxpayers $80 billion a year, but how those funds are spent by the recipient remains largely unknown
Food stamps can be spent on goods ranging from candy to steak and are accepted at retailers from gas stations that primarily sell potato chips to fried-chicken restaurants. And as the amount spent on food stamps has more than doubled in recent years, the amount of food stamps laundered into cash has increased dramatically, government statistics show.
Information regarding how and where the funds are distributed apparently can’t be released due to federal rules.
When a FOIA attempt was made to state officials in Maryland — the request was denied: “the information belonged to the federal government, which instructed states not to release it”. Furthermore, when the Washington Times inquired about how and where the food stamps funds are disbursed, the Times was offered the information — for $125,ooo. The USDA also keeps the program under tight wraps, and would not disclose any information.
The Washington Times concluded,
As a result, fraud is hard to track and the efficacy of the massive program is impossible to evaluate.
So there you have it — your tax dollars, unaccounted for. Surprised?
UPDATE: “>The USDA suggests Food Stamp Parties and games to increase participation
by | ECONOMY, OBAMACARE, POLITICS, TAXES
FLASHBACK: Don’t forget that the House voted to repeal the Medical Device Tax on June 7, 2012 with “H.R. 436, the Protect Medical Innovation Act of 2012”. The Senate never did — not then, not now. Who’s looking out for businesses? See my post from June 2012:
This little-talked about tax seems to be absent from news coverage. Are media outlets are avoiding discussion of Obamacare items in advance of the Supreme Court ruling expected later this month? In case you missed it, on June 7th, the House voted 270-146 to repeal the medical excise tax. The bill must now pass the Senate, where current speculation is that it will not pass.
What is the medical excise tax? Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. It exempts items retailing for <$100. [Bill: PPACA; Page: 1,980-1,986]
Many are ardently opposed to the new tax, and rightfully so. As an excise tax, it taxes gross sales – even if the device company doesn't turn a profit that year. Note: this tax is one of many slated to go into effect January 2013.
As a revenue raiser, its impact is nominal. The government speculates it could raise $20-$30 billion. Though that sounds like a lot to you and me, it's a drop in the bucket in terms of government revenue.
Furthermore, from an business perspective for the companies subject to this tax, the extra resources needed to comply will be burdensome for companies. Price changes and paperwork will take time and manpower away from the company's main purpose -- to produce a product -- in order to handle this new regulation.
From a common sense perspective, why would the federal government want to make medical devices -- which save lives -- more expensive? Will the Senate support small businesses and repeal an unnecessary, expensive, and burdonsome tax? The House has done so. The Senate should follow suit.
by | ECONOMY, FREEDOM, POLITICS, TAXES
From an article in the Washington Post:
The net worth of the American family has fallen to its lowest level in two decades, according to government data released Monday, driven by a more than 40 percent drop in their stakes in their homes.
The Federal Reserve’s detailed survey of consumer finances showed families’ median wealth plunged from $126,400 in 2007 to $77,300 in 2010 — a 39 percent decline. That put them on par with median wealth in 1992.
The Fed’s data underscore the depth of the wounds of the Great Recession and how far many families remain from healing. The median value of Americans’ debt did not change between 2007 and 2010. Meanwhile, the housing market crash inflicted particularly severe damage, with the Fed showing that the median value of Americans’ equity in their homes plunged 42.3 percent between 2007 and 2010.
The survey is conducted every three years, and this report offers one of the most exhaustive looks to date at the greatest economic upheaval in a generation. Although there have been some signs that the recovery has picked up steam — housing prices have begun to stabilize and unemployment has fallen — Fed economists said those improvements largely do not change the survey results.
“Recovery from the so-called Great Recession has also been particularly slow,” the Fed said in its report.
And yet, spending has increased at a greater rate than has even been seen in the history of this country. Spending, on the backs of the taxpayer. No wonder we are poorer. We are shouldering a staggering amount of federal debt.
by | TAXES
Over at Hot Air, a fantastic piece came out today regarding the different solutions governments are seeking to deal with looming and deepening debt crises. The author, Karl, contrasts the examples of Wisconsin and Connecticut — deep cuts and reform vs a balanced approach, respectively. The difference in the results of each type of debt solution are striking. The author then draws on other instances of failure resulting from a “balanced” approach (tax hikes and spending reduction)to show this type of solution is untenable in our current economic climate.
The article is a must-read in its entirety. The last paragraph sums it up nicely.
The common thread is the establishment’s ideologically extreme insistence on center-left compromises. Center-left government is at the heart of most of the crises America currently faces; it is at the heart of the budgetary crises here and in Europe. People like Brownstein see them as a virtue, despite their track record of failure.
by | TAXES
UK Telegraph this morning,
The latest data show that the real M1 money supply – cash and overnight deposits – for China, the eurozone, Britain and the US has been contracting since the early Spring. Any further falls risk a full-blown global recession.
Clear signs of trouble are emerging in the US, until now the last bastion of strength. The New York Institute of Supply Management said its ISM business index – a proxy for business demand – flashed a “screeching halt” in May, crashing to 49.9 from 61.2 in April, where anything below 50 denotes contraction. Unemployment is rising again after grim jobs data for April and May, indicating that the economy may have fallen below stall speed.
This report matches up with my earlier article which outlined the 1-yr % change in the global markets. So, what’s the solution? Print more money? QE 3? The article has some recommendations. What’s yours?
by | ARTICLES, ECONOMY, POLITICS, TAXES
From the WSJ:
U.S. stocks posted their biggest losses of the year following another disappointing employment report.
The Dow industrials sank 274.88 points, or 2.2%, to 12118.57, turning negative for the year. The Nasdaq composite lost 79.86, or 2.8%, to 2747.48. The S&P 500 fell 32.29, or 2.5%, to 1278.04.
Gold prices shot up 3.7% to $1,620.50 a troy ounce. The yield on the 10-year Treasury note fell to 1.467%, its first time ever below 1.5%. Crude-oil slumped 3.8%. The dollar retreated against the euro and yen.
However, want some really sobering numbers?
Go down to International Stock Markets and start looking at their 1-yr % change.
Spain? 41.34% of their stock value GONE.
Italy? 36.84% of their stock value GONE.
France? 25.58% of their stock value GONE.
Britain? 11.27% of their stock value GONE.
Canada? 16.02% of their stock value GONE.
Argentina? 28.95% of their stock value GONE. (remember them? Right now they are denying devaluation speculation)
Hong Kong? 21.45% of their stock value GONE.
China? 13.49% of their stock value GONE.
Japan? 13.16% of their stock value GONE.
Israel? 15.03 of their stock value GONE.
Egypt? 15.15% of their stock value GONE. (didn’t they just have a revolution? On par with Israel…)
The U.S. Dow Jones? Down a mere 3.14%
I don’t think we’ve seen numbers such as these since the Great Depression or the fall of Rome. Worse, this is all being done on speculation on the Greek market’s impact on the Euro.
Two things:
(1) The world markets are tanking and that “full faith and credit of the United States” on your money is what’s keeping America afloat.
(2) You should be investing in precious metals if we don’t get a budget out of Congress by the end of the year. Not gold and silver, either… but copper and lead.
Between the federal statutory debt limit and the November Presidential elections, Autumn 2012 is certain to be just as volatile.
by | TAXES
I kind of feel bad for the guy who writes the White House blog. He must be very, very tired. So tired that he has to recycle old themes repeatedly (it’s Bush’s fault) and make sure no blame is placed on the shoulders of his boss, Obama.
With a dismal jobs report for May and unemployment up from April, the White House immediately points back 5 years.
There is much more work that remains to be done to repair the damage caused by the financial crisis and deep recession that began at the end of 2007.
Then, he talks about Obama’s plans for recovery.
In the American Jobs Act and in the State of the Union Address, the President put forward a number of proposals to create jobs and strengthen the economy, including proposals that would put teachers back in the classroom and cops on the beat, and put our nation’s construction workers back on the job rebuilding our nation’s infrastructure. The President has also proposed a “To-Do List” of actions that Congress should take to create jobs and help restore middle-class security. This includes eliminating tax incentives to ship jobs overseas, cutting red tape so responsible homeowners can refinance, giving small businesses that increase employment or wages a 10 percent income tax credit, investing in affordable clean energy, and helping returning veterans find work.
Too bad he doesn’t mention the fact that none of Obama’s proposals have garnered a single “yea” vote in the House or Senate in either party over the last two years.
And how’s the budget working out? Paul Ryan got it right when he pointed out the bicameral and bipartisan rejection of Obama’s ideas.
I think the best part of the blog post, however, was the summary:
As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report and it is helpful to consider each report in the context of other data that are becoming available.
At least they got that right…
The report comes a month after the government reported that just 115,000 new jobs were added in April, a number that helped contribute to a general malaise about economic growth.
Even that number was worse than thought: The BLS revised the April number down to 77,000.
The White House report was written by Alan B. Krueger, the Chairman of the Council of Economic Advisers
UPDATE: Jay Cost, over at the Weekly Standard, chimes in on the White House response: Not Good Enough
by | ARTICLES, ECONOMY, TAXES
Reports coming in this morning show the unemployment rate rising a tenth of a point, as only 69K jobs were added in May. If you count “discouraged workers”, their numbers went up as well — to 14.8%. Workforce participation continues to hover at 30 year lows.
Last month, analysts boasted hopeful spin numbers that the unemployment rate was 8.1% — forgetting to mention the part that it was because 341K had left the workforce. Now, what about the month of April, again?
The report comes a month after the government reported that just 115,000 new jobs were added in April, a number that helped contribute to a general malaise about economic growth.
Even that number was worse than thought: The BLS revised the April number down to 77,000.
Additionally, stocks were down their worst week since 2010. A quick look at pre-market data shows that they are spooked by the report as well this morning. Let’s see what Friday brings. At least for President Obama, he has six fundraiser to attend today!
Other opinions:
White House Blames Bush
Is a second recession on the way?
Jobs Slowdown Adds to Global Fears
by | ARTICLES, FREEDOM, NEW YORK, TAXES
CNSnews reported this week that a study by the Tax Foundation found a net loss of 1.3 million New Yorkers who left the state over the 10 year period from 2000-2010.
3.4 million total moved out of state, but another 2.1 moved in, so the change was -1.3 million — which totaled a loss of $45.6 billion in income.
Although many factors determine one’s decision to move to or from a locality, taxes are typically part of the process. As such, the Tax Foundation noted many high tax facts that are unique to New York:
According to the group, New York ranked second among the states for the highest state and local tax burden in 2009. The Empire State was ranked highest for tax burden every year from 1977 until 2006, except in 1984 when it was ranked second.
New York State has a progressive personal income tax rate ranging from 6.45 percent to 8.82 percent for those earning over $2 million. Sales varies by county, and is between seven and eight percent. In Manhattan, the sales tax is 8.875 percent.
According to the Retirement Living Center, which examines tax burdens by state for those nearing retirement, New York also levies a gasoline tax at 49.0 cents per gallon and a cigarette tax of $4.35 per pack, along with an additional $1.50 per pack in New York City.
New York is also one of 17 states plus the District of Columbia that collects an estate tax, with a $1 million exemption and a progressive rate from 0.8 percent to 16 percent.
In 2007, New York State collected $1.1 billion from its estate and gift taxes, the highest of any of the states, according to the Tax Foundation.
I have mentioned these points before. Back in 2009, Rush Limbaugh fled the state due to the crushing taxes. And an Op-Ed in the NY Post last year discussed the implications of a shrinking population — loss of revenue, House of Representative seats, and policy power.
High taxes have devastating consequences. Thomas Sowell once quipped, “Elections should be held on April 16th- the day after we pay our income taxes. That is one of the few things that might discourage politicians from being big spenders”.
by | BUSINESS, ECONOMY, HYPOCRISY, OBAMA, SOCIAL SECURITY, TAXES
USA Today had a spot-on analysis of how misleading federal accounting practices are. In a previous article elucidating how Social Security is not Pay-As-You-Go, I pointed out the fallacy of this “system”, as it is a method of hiding future realities. USA Today takes this concept further and examines the entirety of the government’s deficit reporting:
The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits. Yet companies, states and local governments must include retirement commitments in financial statements, as required by federal law and private boards that set accounting rules.
Exactly. Any business profession which failed to take into account future liabilities would face scrutiny from the SEC.
The main argument for exempting future retirement promises into the deficit calculation is that the government has the flexibility to change the amount it is obligated to pay out by tweaking the formula — such as raising taxes or cutting benefits — while businesses do not typically have that luxury. Such a ridiculous premise. The deficit amounts are always in flux and this excuse only serves to hide the reality of extra trillion dollar obligations that no one wants to fix, own up to, or reduce. A few days ago, I did some number crunching on the “official” federal deficit figures. I can’t fathom the results I’d get incorporating the data USA Today compiled.
From the USA Today findings:
•Social Security had the biggest financial slide. The government would need $22.2 trillion today, set aside and earning interest, to cover benefits promised to current workers and retirees beyond what taxes will cover. That’s $9.5 trillion more than was needed in 2004.
•Deficits from 2004 to 2011 would be six times the official total of $5.6 trillion reported.
•Federal debt and retiree commitments equal $561,254 per household. By contrast, an average household owes a combined $116,057 for mortgages, car loans and other debts.
With folks like Dick Durbin perpetuating the lie, it’s no wonder how ignorant much of the population is with regard to proper accounting practices and fiduciary responsibility.
