Sunday, July 25, 2010

2011 Tax Hike: Progressive Style

Tax Relief for the Middle Class (whatever middle class means)

by: Larry Walker, Jr.

With the imminent expiration of the Bush tax cuts, Mr. Obama and his progressive minions fathom that its termination doesn't really constitute a tax increase. It's not a tax hike in their minds, it's just the conclusion of another failed Bush policy which helped contribute to the 'great recession'. So in 2011, when your taxes climb, and they will advance across the board (as shown here), you shouldn't blame Obama. Paying a little bit more shouldn't be a problem now, because we are far better off today under Obama's economic stimulus, than we were in all of 2001 through 2008. Right?

Leave it to Barack H. Obama, II to have an answer for every problem facing Americans today.

You got problems? Obama's got solutions.

Problem: You are upside down on your mortgage and can't see the light of day.

Solution: That's not my fault, it's Bush's fault. You're still getting a tax hike.

___

Problem: You are still trying to work out a loan modification to try to save your home.

Solution: Hopefully that will work out, but right now I need to raise your taxes.

___

Problem: You recently lost your home and are struggling to make ends meet.

Solution: So sorry, but I gotta raise your taxes too.

___

Problem: You're on 99 weeks of extended unemployment benefits due to a rotten economy and the failed stimulus program.

Solution: Be sure to have taxes taken out of it, because you're getting a tax hike too.

___

Problem: You haven't saved enough for retirement and you are trying to find a way to save more.

Solution: Well, if you have money to save, then you can pay more taxes. You're definitely getting a tax hike.

___

Problem: Your business suffered massive losses over the last two years and you're still paying off loans and credit lines, and trying to dig your way out of a hole.

Solution: We all have to do our fair share. A tax hike for you.

___

Problem: The Gulf of Mexico oil spill completely destroyed your livelihood and you don't know what you're going to do.

Solution: That's BP's fault, not mine. Set some of that BP money aside, because you're getting a tax hike too.

___

Problem: You're already working two jobs and still living paycheck to paycheck.

Solution: Try to cut back on expenses, or get a third job, because you're getting a tax hike too.

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Problem: You're one of the 1.4 million who filed for bankruptcy last year.

Solution: Now that all of your debts are out of the way, paying more taxes should not be a problem. Tax hike!

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Problem: You're one of the 40 million Americans currently on food stamps.

Solution: Since there will be 3 million more on food stamps next year, we have to raise taxes on everyone else to help out folks like you. And if you earn enough income to be taxed in the near future, don't you worry, you're getting a tax hike too.

___

Problem: You've paid taxes your whole life, and you're worried that the reinstatement of the 55% estate tax in 2011 will force the sale of your family business.

Solution: If you leave an estate worth over $1 million, your estate will be forking over the 55%. But, since you'll be dead by that time you shouldn't worry about it so much. When we spread the wealth around it's good for everybody.

___

Problem: You're worried about how the known (and hidden) taxes in Obamacare, the Stimulus Act and other stealth legislation will affect you on top of the 2011 tax increase.

Solution: Don't worry about it. You'll find out when we do. Once we finally finish reading and interpreting all of this mess, ... I mean reform, we'll let you know.

Here's what our current tax rate schedule looks like as compared to what the 2011 rates may look like (assuming no adjustment for inflation):


2010 vs. 2011 Tax Rates

Obama and the progressives want to somehow let the Bush tax cuts expire for anyone making over $200,000 per year, but it's not clear whether or not tax rates for those below that amount will revert to pre-2001 levels. Since there is no cut-off at $200,000 per year under our current tax rate schedule, Obama will need to invent a new tax rate schedule. Here's what an Obama tax rate schedule might look like:


Obama's Tax Rate Schedule?

Under current tax law, those making over $373,650 a year are considered wealthy, but from now on, if you make over $200,000 a year (formerly $250,000) you're rich, because Obama says so.

Unusual uncertainty remains unusually uncertain.

It will be interesting to see how Congress resolves this. If Congress fails to take action, taxes will rise across the board, by default. Waiting until after the November elections is not an option.


Saturday, July 24, 2010

2011 Tax Jam: Wrong Way, Wrong Road

Directions for Misguided Democrats

by: Larry Walker, Jr.

In my last blog post, 2011 Tax Increase: A Reality Check, I attempted to point out how the Bush tax cuts applied to all Americans at every level of income, and that with their expiration at the end of 2010, income taxes will rise across the board. Although valid enough to ignite renewed interest, I now want to expand on this in a more technical manner with examples.

The following table compares the pending change in tax rates (assuming no change for inflation).

2010 vs. 2011 Tax Rates

As evident with a quick glance, those in lower income levels will see their taxes increase the most with taxes increasing by 50% (from 10% to 15%), but this doesn’t tell the whole story. Only by looking at effective tax rates, can we see the impact of the pending tax increase on hard working Americans, and small business decision makers. [Note: The effective tax rate is calculated by dividing the amount of taxes paid, by the amount of gross income.]

When it comes to taxes, there are many variables that will effect the calculation of ones effective tax rate, such as filing status, number of children, whether or not one itemizes deductions, and whether one has income from pass-throughs (i.e. Partnerships, and S-Corporations), or from capital gains. So in an effort to keep this somewhat simple, the examples that follow assume a married couple without children, without capital gains, who does not itemize deductions, and whose income is limited to $500,000.

[Note: The following tables place income on the cusp of each tax bracket, and thus were prepared on a ‘give or take a dollar or two’ basis. (You may click on each table to enlarge.)]

2010 Effective Tax Rates

2011 Effective Tax Rates

2011 Marginal Tax and Rate Increases

Example 1 - 10% Bracket: Joe and Jane are married and have combined wages of $35,450.00. In 2010 they will pay income taxes of $1,675 with an effective tax rate of 4.7%. Their 2010 after-tax income is $33,775. In 2011 they will pay income taxes of $2,512.50 with an effective tax rate of 7.1% which represents a tax increase of 50%. Their after tax income in 2011 will fall by $837.50.

Example 2 – 15% Bracket: Lance and Lori are married and have combined income of $86,700.00. In 2010 they will pay income taxes of $9,362.50 with an effective tax rate of 10.8%. Their 2010 after-tax income is $77,337.50. In 2011 they will pay income taxes of $10,200 with an effective tax rate of 11.8% which represents a tax increase of 8.9%. Their after tax income in 2011 will fall by $837.50.

Example 3 – 25% Bracket: Nick and Nancy are married and have combined income of $156,000.00. In 2010 they will pay income taxes of $26,687.50 with an effective tax rate of 17.1%. Their 2010 after-tax income is $129,312.50. In 2011 they will pay income taxes of $29,604.00 with an effective tax rate of 19.0% which represents a tax increase of 10.9%. Their after tax income in 2011 will fall by $2,916.50.

Example 4 – 28% Bracket: Paul and Penny are married and have combined income of $227,950.00. In 2010 they will pay income taxes of $46,833.50 with an effective tax rate of 20.5%. Their 2010 after-tax income is $181,116.50. In 2011 they will pay income taxes of $51,908.50 with an effective tax rate of 22.8% which represents a tax increase of 10.8%. Their after tax income in 2011 will fall by $5,075.00.

Example 5 - 33% Bracket: Ronald and Rhonda are married and have combined wages $392,350.00. In 2010 they will pay income taxes of $101,085.50 with an effective tax rate of 25.8%. Their 2010 after-tax income is $291,264.50. In 2011 they will pay income taxes of $111,092.50 with an effective tax rate of 28.3% which represents a tax increase of 9.9%. Their after tax income in 2011 will fall by $10,007.00.

Example 6 – 35% Bracket: Tom and Tammy are married and have combined income of $518,700.00. In 2010 they will pay income taxes of $145,308.00 with an effective tax rate of 28.0%. Their 2010 after-tax income is $373,392.00. In 2011 they will pay income taxes of $161,127.10 with an effective tax rate of 31.1% which represents a tax increase of 10.9%. Their after tax income in 2011 will fall by $15,819.10.

Does the government deserve 30-40% of your money? From the examples provided, those making over $392,350 will pay between 31.1% up to 39.6% of every additional dollar earned in taxes. This particularly impacts small business owners whose income is taxed at the personal level. It’s hardly worth the effort to expand operations and provide jobs when the government will get 30% to 40% of the paper profits.

All income is not created equal. The federal government should understand that just because a small business has taxable income of $400,000 doesn’t mean that its owner has $400,000 in the bank. Some of that money was used to pay non-deductible principal payments on loans, and some of it is necessary for working capital in order to continue operations. Although the interest paid on loans is deductible for tax purposes, principal repayments are not, so the government really shouldn’t assume that taxable income is the same thing as disposable income.

A tax increase is a tax increase. Those making under $36,000 per year will see the highest tax rate increase of 50%. Although those making between $36,000 and $87,000 will see the smallest increase at potentially 8.9%, a tax increase is a tax increase. For those in the remaining brackets, taxes will increase by approximately 10% to 11%. This is a far cry from Obama’s bold declaration that we would not see our taxes increase by ‘one dime’. Technically it will be more like a dime to fifty cents on the dollar. Yes, income taxes will increase for all who pay taxes, without quick action.

Taxes will rise by a lot more than a dime. When the Bush tax cuts expire at the end of this year, couples making over a nickel and under $500,000 per year, will see their effective income tax rates rise, from between 8.9% to 50.0%. Lower income wage earners face the largest increase. Couples with income above $392,350 will be effectively handing the government 30% - 40% of each additional dollar earned.

Unusual uncertainty is unusually uncertain. The longer Congress delays in giving the public clarity, the more prolonged this period of ‘unusual uncertainty’. Individuals and small businesses are already in process of making plans for the remainder of 2010 and forward, and without knowing for certain whether or not the Bush tax cuts will be extended, planning has come to a halt. Under the assumption that taxes will rise in 2011, plans for further spending in 2010 have been shelved, because those deductions will be of better use next year. Delaying a decision until year-end would not be wise.

What's your total tax bill? Now when you add to the above effective tax rates: State and Local taxes, Social Security and Medicare taxes, sales taxes, property taxes, excise taxes; and possibly new health care and carbon taxes, the situation is not only unusually uncertain, but unbearable and unsustainable. Politicians should listen when taxpayers holler the acronym, T.E.A., which stands for taxed enough already. Congress should not only re-instate the Bush tax cuts, but should consider further cuts in both income taxes and its own out-of-control spending (which leads to higher and higher taxes). Failure to take the public seriously will result in the death of the American economy. Yes, Misguided One, when it comes to taxes and spending, we wish to go backwards, not further into the abyss.

A Potential Solution - One solution would be to extend the Bush tax cuts for another three years with one minor change. There should be an additional standard deduction granted to small business owners. Job creators who own Partnerships and S-Corporations should specifically be granted an additional deduction based on the level of business income reported on their personal tax returns. This incentive would encourage small business owners to expand, will create more jobs, and will improve the overall economy. Let's start putting the incentive where it matters and stop punishing those who drive the American economy.

Related: Liberals, Conservatives Agree: Re-Imposing the Death Tax Designed to Penalize the Wealthy

Saturday, July 17, 2010

2011 Tax Increase : A Reality Check

Income Tax Reality Check

Compiled by: Larry Walker, Jr.

"If you make less than $250,000, you will not see your taxes increase by one dime." ~ B. H. Obama

Left-wing pundits are claiming that the Bush tax cuts were for the wealthy, which is simply not true. Next year when the 10% tax bracket disappears, and tax rates return to pre-2001 levels, will represent an across the board tax increase affecting every American. In addition, the child tax credit will return from $1,000 (per child under age 17) to $500 representing a tax increase for everyone who has children, not the wealthy. The fact is that the Bush tax cuts applied to every American at every level of income, and when they expire taxes will rise from the bottom up.

In 2011, if you make over a nickel in taxable income, your taxes will increase a minimum of 9%, and as much as 50%. Since our tax rates are progressive, taxes on the first $16,750 for couples ($8,375 for singles) will increase by 50%. Taxpayers who make under $8,375 in taxable income will see the largest tax increase at 50%. Middle income earners will see their taxes rise by no less than 9%. The contention that the Bush tax cuts only affected the wealthy is a bald-faced lie. Similarly, the contention that Obama's tax increases will only affect the wealthy is nothing but a fairy tale. Americans are educated and can comprehend income tax tables. You can choose to believe whatever you want, but reality should not be optional.


2010 Tax Brackets

Nickel over at fivecentnickel.com has projected how the 2011 income tax brackets may look. The commentary below is attributed to Nickel. I have retouched his 2011 table (below), and added the 2010 table (above) for comparison.

Income tax bracket changes for 2011 - In case you weren’t aware, the Bush tax cuts of 2001 and 2003 are set to expire at the end of 2010. Thus, if Congress doesn’t act, the relatively low income tax rates that we’ve been enjoying (hah! enjoying?) will soon be a thing of the past. They will be replaced by the pre-2001 tax brackets.

In other words, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets that we’ve grown accustomed to will be replaced by 15%, 28%, 31%, 36%, and 39.6% brackets. It’s hard to say exactly where the income cutoffs will lie, but if we base the numbers on the 2010 income tax brackets and add 3% for inflation, the 2011 tax brackets might look something like this:


2011 Projected Tax Brackets

Capital gains tax changes in 2011 - Beyond the increased federal income tax brackets, the capital gains tax rates will also be changing (and not for the better). The top rate for long-term capital gains will be rising from 15% to 20%, and the 0% rate for those in the lowest tax brackets will be replaced by a 10% long-term capital gains rate.

Why worry about 2011 income tax changes? - Since the 2011 tax year is so far off, you might be wondering why we’re even talking about it right now. Well, as I noted above, the time to be planning for things like this is right now – before the changes go into effect as these potential income tax rates have the potential to take a big bite out of your savings account.

What sort of planning should you be doing? I can think of several things off the top of my head. For starters, if you’re in a position to accelerate income from 2011 into 2010, you might want to do so. In many cases this is easier said than done, but it’s worth exploring if you’d like to shield your income from the potentially higher rates.

Also, if you’re anything like me, you may wait until the end of the year to make your charitable donations. If so, then by waiting just a few more days (until January 1, 2011) to write that check, you could net a substantial tax savings. While you’d have to wait longer to claim the deduction, it might be worth it.

Similarly, if you anticipate selling investments to generate cash during 2011, you might consider moving that up to the end of 2010 to get in on the (presumably) lower capital gains tax rates.

Reference: http://www.fivecentnickel.com/2010/02/15/2011-federal-income-tax-brackets-irs-income-tax-rates/


Wednesday, July 14, 2010

NAACP for Advancement of Colored Progressives

Killer King Samir Shabazz
By: Larry Walker, Jr.

The Tea Party Movement is made up of people of all colors. There are no racial barriers, anyone can join the Tea Party and has the right to protest against our runaway Government. Yet the NAACP has chosen to condemn the Tea Party for having so called racist elements. Instead of defending the rights of this diverse organization, the NAACP has proven that the words ‘all persons’ does not really apply as stated in their mission statement. Does the NAACP ensure the political rights of all persons? Not those of the Conservative persuasion.

NAACP Mission Statement

The mission of the National Association for the Advancement of Colored People is to ensure the political, educational, social, and economic equality of rights of all persons and to eliminate race-based discrimination.

Vision Statement

The vision of the National Association for the Advancement of Colored People is to ensure a society in which all individuals have equal rights without discrimination based on race.


The New Black Panther party is composed of a few radical Black extremists who contend that ‘Crackers’ and their ‘Cracker’ babies should be killed. One of their members, King Samir Shabazz, has been shown all over the news recently shouting, “If you want freedom, you gonna have to kill some ‘Crackers’.” He was also caught at a Philadelphia polling place during the 2008 Presidential elections wielding a night stick and threatening voters. Did the NAACP come to the rescue to defend the political rights of ‘all’ persons? No. In this case, the NAACP sided with the racist inciter.

Kenneth Gladney was called a ‘Nigger’ and beaten to the ground by a group of Black and White, Service Employees International Union (SEIU) members while selling souvenirs, to conservatives, at a St. Louis town hall meeting. Did the NAACP come to his rescue? No. In a show of their true colors, NAACP members simply dismissed Mr. Gladney as an ‘Uncle Tom’.

Based on 2008 racial and ethnic demographics, there were 37.6 million Black Americans living in the United States out of at total population of 304.1 million. Black Americans represented just 12.4% of the population while White Americans represented 65.4%. In 2007, the NAACP reported having 300,000 dues-paying members, and another 100,000 non-paying members. With NAACP membership representing just 1.2% (400k / 37,600k) of Black Americans (assuming that all members are black), any resolution that they make can hardly be taken as representative of mainstream Black Americans.

Of course, having a mission statement which is diametric to the actions of the organization doesn’t help win many members. Let’s face it, the NAACP not only fails to represent the rights of ALL persons, it doesn’t even represent and defend the rights of mainstream Black Americans. In particular, if you are a Black Conservative, as far as the NAACP can see, you are just a Negro, or an Uncle Tom. Whether you are Black, White, or other if you don’t agree with the progressive positions taken by the NAACP, then according to the NAACP you are probably a racist, or associated with organizations containing racist elements.

Only a dismal 1.2% of Black Americans (assuming that all their members are Black) have found the NAACP worthy of supporting financially, or otherwise. If not for the immense support of large Corporations and Foundations, the NAACP would have died out long ago. In calendar year 2008, the last year reported, its corporate donors of $500K or more included AT&T, Bank of America, Starbucks, Wal-Mart, Wachovia (now Wells Fargo), and Verizon. Companies donating $100,000 to $499,999 included Allstate Insurance, Anheuser Busch, Best Buy, Blockbuster, Denny’s, Federal Express and a host of others. Foundations contributing $1 million or more included the Bill & Melinda Gates, and Ford Foundations. See page 40 of the 2008 Annual Report for the entire list.

In conclusion, the NAACP has a membership which represents at most just 1.2% of Black Americans (assuming that all of its members are Black). The NAACP is mainly supported by large corporations and foundations, which are not representative of Black Americans. Thus, the NAACP is not a representative, or spokesperson for Black Americans. Nor is the NAACP a defender of the rights of ‘all persons’.

The NAACP’s condemnation of the Tea Party Movement, its failure to condemn the racist New Black Panther Party, and its refusal to defend Kenneth Gladney make the organization nothing but a political pawn controlled by the purse strings of Corporate America. In other words, the NAACP has evolved into just another irrelevant, left-wing, progressive, political windbag.

Perhaps Bruce Gordon, the former NAACP president, was correct when he tried in vain to change its mission toward more social service work. Donors should take heed.


Monday, July 12, 2010

What Do New Black Panthers Want?

New Black Pantherville

What the New Black Panthers Believe – 10 Point Platform with My Commentary

By: Larry Walker, Jr.

So what exactly do the so called New Black Panthers want? Here is their 10 point platform with some brief commentary. If you ask me, they are preaching in the wrong century, and on the wrong continent, but that's just my opinion. I wish we could prosecute those involved with the voter intimidation incident and go back to ignoring these left-wing lunatics. But once they started talking about killing folks, their first amendment rights were breached, and further investigation is now warranted.

1. We want freedom. We want the power to practice self-determination, and to determine the destiny of our community and THE BLACK NATION. We believe in the spiritual high moral code of our Ancestors. We believe in the truths of the Bible, Quran, and other sacred texts and writings. We believe in MAAT and the principles of NGUZO SABA. We believe that Black People will not be free until we are able to determine our Divine Destiny.

I was born free and remain free today. I have the power to practice self-determination and to determine my own destiny and do so every day. I do not have any control over the destiny of your mythical community. The community that I live in happens to be multicultural. I am not aware of any Black Nation. I live in the United States of America. The United States of America is my Nation. There is no such thing as The Black Nation.

My friends and business associates represent all races of man. I believe in the truths of the Bible, but not the Quran or other so called sacred texts and writings. I don’t by name believe in MAAT or the principles of NGUZO SABA, although some of the same principles are taught in the Bible. I believe that all people are free, and that each soul will be judged based on their individual actions (content of character), not as a collective body.

2. We want full employment for our people and we demand the dignity to do for ourselves what we have begged the white man to do for us. We believe that since the white man has kept us deaf, dumb and blind, and used every dirty trick in the book to stand in the way of our freedom and independence, that we should be gainfully employed until such time we can employ and provide for ourselves. We believe further in: POWER IN THE HANDS OF THE PEOPLE! WEALTH IN THE HANDS OF THE PEOPLE! ARMS IN THE HANDS OF THE PEOPLE!

The problem is that you begged a white man to do for you what you should have been doing for yourself. I never begged anyone for anything and don’t plan on doing it now. If you want full employment for the members of your organization then perhaps they should go out and get jobs. If you believe that a white man kept you deaf, dumb and blind then perhaps you are deaf, dumb and blind of your own volition. I don’t see any Black folks wearing chains or not making independent decisions every day.

If you want to be gainfully employed until you can provide for yourself, then perhaps some combination of education or job training will help. I graduated from high school and college but found it necessary to take additional courses to specialize in my field. My parents, grandparents, and great-grandparents did the same. You believe in power, wealth and arms in the hands of the people but most of us have gone beyond just believing and actually have achieved some measure of the same.

3. We want tax exemption and an end to robbery of THE BLACK NATION by the CAPITALIST. We want an end to the capitalistic domination of Africa in all of its forms: imperialism, criminal settler colonialism, neo-colonialism, racism, sexism, zionism, Apartheid and artificial borders.

We believe that this wicked racist government has robbed us, and now we are demanding the overdue debt of reparations. A form of reparations was promised 100 years ago (forty acres and a mule) as restitution for the continued genocide of our people and to in meaningful measure and repair the damage for the AFRICAN HOLOCAUST (Maangamizo/Maafa).

We believe our people should be exempt from ALL TAXATION as long as we are deprived of equal justice under the laws of the land and the overdue reparations debt remains unpaid. We will accept payment in fertile and mine rally rich land, precious metals, industry, commerce and currency. As genocide crimes continue, people's tribunals must be set up to prosecute and to execute.

The Jews were given reparations. The Japanese were given reparations. The Black, the Red and the Brown Nations must be given reparations. The American white man owes us reparations. England owes us reparations. France owes us reparations, Spain and all of Europe. Africa owes us reparations and repatriation. The Arabs owe us reparations. The Jews owe us reparations. All have taken part in the AFRICAN HOLOCAUST and the slaughter of 600 million of our people over the past 6,000 years in general and 400 year in particular. We know that this is a reasonable and just demand that we make at this time in history.

There is no Black Nation. Nobody owes you or I anything. Equality is the best you’re going to get so accept it and get used to it. You mean you've been on welfare for 200 years and you still want reparations? Please.

4. We want decent housing, fit for shelter of human beings, free health-care (preventive and maintenance). We want an end to the trafficking of drugs and to the biological and chemical warfare targeted at our people.

We believe since the white landlords will not give decent housing and quality health care to our Black Community, the he housing, the land, the social, political and economic institutions should be made into independent UUAMAA New African Communal/Cooperatives so that our community, with government reparations and aid (until we can do for ourselves) can build and make drug free, decent housing with health facilities for our people.

You want decent housing, free health-care and to end drug trafficking targeted at your people. So you want more welfare, better quality housing projects and more Rehab centers? Try working your way up like the rest of us instead of whining like little cry babies.

5. We want education for our people that exposes the true nature of this devilish and decadent American society. We want education that teaches us our true history/herstory and our role in the present day society.

We believe in an educational system that will give our people a knowledge of self. If we do not have knowledge of self and of our position in society and the world, then we have little chance to properly relate to anything else.

So you think this is a ‘Devilish’ and ‘decadent’ American society? Nothing is stopping you from leaving. All the education in the world won’t help you find your role in present day society. Such is a spiritual journey. Seek and you shall find. All the education in the world won’t give you the knowledge of self, as that too is a spiritual journey.

6. We want all Black Men and Black Women to be exempt from military service. We believe that Black People should not be forced to fight in the military service to defend a racist government that holds us captive and does not protect us. We will not fight and kill other people of color in the world who, like Black People, are being victimized by the white racist government of America. We will protect ourselves from the force and violence of the racist police and the racist military, by any means necessary.

As I said above, equality is the best you’re going to get, learn to live with it. The last time I checked, military service is voluntary, so you don’t have to join. You don’t want to defend your own country, because you think your government, the police, and military are ‘racist’, yet each of these institutions is manned by, and in many cases run by people of color.

7. We want an immediate end to POLICE HARRASSMENT, BRUTALITY and MURDER of Black People. We want an end to Black-on-Black violence, snitching, cooperation and collaboration with the oppressor.

We believe we can end police brutality in our community by organizing Black self-defense groups (Black People's Militias/Black Liberation Armies) that are dedicated to defending our Black Community from racist, fascist, police/military oppression and brutality. The Second Amendment of white America's Constitution gives a right to bear arms. We therefore believe that all Black People should unite and form an African United Front and arm ourselves for self-defense.

Police harassment, brutality and murder of any race is a bad thing in my view. You want to end black-on-black violence, but you don’t see putting arms in the hands of every radical nut like yourselves as a potential problem? You speak of cooperation and collaboration with the ‘oppressor’ while I’m looking at black police officers, and a black police chief and wondering what planet you’re living on. An African United Front sounds like a death wish, or perhaps a suicide mission, and on the wrong continent to boot.

8. We want freedom for all Black Men and Black Women held in international, military, federal, state, county, city jails and prisons.

We believe that all Black People and people of color should be released from the many jails and prisons because they have not received a fair and impartial trial. Released means released to the lawful authorities of the Black Nation.

Again, there is no Black nation. You want every deranged thief, murderer and drug dealer released into your hands simply based on their color. That’s not going to happen. In fact, you will be joining them soon if you don’t change your ways.

9. We want all Black People when brought to trial to be tried in a court by a jury of their peer group or people from their Black Communities, as defined by white law of the Constitution of the United States.

We believe that the courts should follow their own law, if their nature will allow (as stated in their Constitution of the United States) so that Black People will receive fair trials. The 6th Amendment of the United States Constitution gives a man/woman a right to an impartial trial, which has been interpreted to be a fair trial by one's peer group. A peer is a person from a similar economic, social, religious, geographical, environmental, historical and racial background. To do this, the court will be forced to select a jury from the Black Community from which the Black defendant came. We have been and are being tried by all white juries that have no understanding of the average reasoning person of the Black Community.

The Constitution of the United States is not a white, or black law, it is simply the law of the United States of America. The last time I was involved in court, the Chief Justice of the State Supreme Court turned out to be a Black woman, so I'm still wondering which planet you live on. My peers could simply be the people in my neighborhood, which I said above is multicultural. Everyone has the right to appeal and I hope they do if they are unfairly treated. That is a Constitutional right, available to all Americans.

10. WE DEMAND AN END TO THE RACIST DEATH PENALTY AS IT IS APPLIED TO BLACK AND OPPRESSED PEOPLE IN AMERICA. WE DEMAND FREEDOM FOR ALL POLITICAL PRISONERS OF THE BLACK RED AND BROWN NATION!

We want land, bread, housing, education, clothing, justice and peace. And, as our political objective, we want NATIONAL LIBERATION in a separate state or territory of our own, here or elsewhere, a liberated zone (New Africa or Africa), and a plebiscite to be held throughout the BLACK NATION in which only we will be allowed to participate for the purposes of determining our will and DIVINE destiny as a people. FREE THE LAND!

UP YOU MIGHTY NATION! YOU CAN ACCOMPLISH WHAT YOU WILL! BLACK POWER! History has proven that the white man is absolutely disagreeable to get along with in peace. No one has been able to get along with the white man. All the people of color have been subjected to the white man's wrath. We believe that his very nature will not allow for true sharing, fairness, equity and justice.

Therefore, to the Red Man and Woman, to the Yellow and to the Brown, we say to you - THE SAME RABID DOG THAT BIT YOU, BIT US TOO! ALL POWER TO THE PEOPLE!

How can the death penalty be racist when it applies to anyone who commits murder (depending on the State)? The death penalty is what it is. Where are all of these alleged political prisoners? WHT, now it’s the Black, Red and Brown Nation? Brown and Red folks might not want to join you in your ‘New Africa’. Hell, I’m black and I’ll take a pass. The last thing I want is to be cooped up with a bunch of black mental cases. Next, you’ll be asking for your own planet.

You got your half-black President, and you’re still not satisfied? What’s the matter, no jobs, taxes going up, he hasn’t divided the nation enough yet? There is a cure for rabid dog bites, and we won't be intimidated come November. If I see one of you Panthers with a stick at my polling place, it will be dutifully shoved where the sun don't shine.

Bottom line: The New Black Panthers represent a micro sector of radical Black left-wing extremists. The word ‘sedition’ comes to mind. This is a dangerous organization that should be abolished once and for all. Watch them closely, and if they step out of line, take them down.

http://www.newblackpanther.com/newsite/102.html

Friday, July 2, 2010

Recovery (dot) Fail | Not Jobs

Wrong Track

Employment Situation Worse: Year-Over-Year

By: Larry Walker, Jr.

The Bureau of Labor Statistics (BLS) released their employment situation report on Friday July 2, 2010. My analysis is meant to expose facts that most casual observers ignore. Instead of the general month-to-month comparison, I am assessing changes in the employment situation over the last twelve months. This expanded view will tell us whether or not the Recovery Act is working. I will begin with my conclusions, followed by excerpts from the BLS report, and end with my analysis.

Conclusion: The employment situation is worse than it was a year ago. Although the U-6 unemployment rate stood unchanged at 16.5%, the population increased by 2.0 million, while the labor force fell by 1.0 million, making the employment situation unsustainable. The number of marginally attached and discouraged workers rose to 2.6 million, an increase of 415,000 year-over-year. The number of unemployed persons rose by 317,000. There are 919,000 fewer jobs than there were a year ago.

So much for, “the recovery is working.” So much for Progressive-Economics, the main tenets of which appear to be:

  1. Borrow huge sums of money from taxpayers and foreigners.

  2. Spend it in ways that won’t necessarily lead to job creation (i.e. tax cuts for all except for those who would use it to create jobs; more government jobs; mandatory health care; etc…)

  3. Raise taxes on the remaining smaller pool of workers who survive Steps 1 and 2, in order to pay for Step 1.

  4. Repeat Steps 1 through 3 (if you manage to survive after Step 2).

The following excerpts are from the latest BLS report entitled, THE EMPLOYMENT SITUATION -- JUNE 2010:

Total nonfarm payroll employment declined by 125,000 in June, and the unemployment rate edged down to 9.5 percent, the U.S. Bureau of Labor Statistics reported today. The decline in payroll employment reflected a decrease (-225,000) in the number of temporary employees working on Census 2010. Private-sector payroll employment edged up by 83,000….

Both the number of unemployed persons, at 14.6 million, and the unemployment rate, at 9.5 percent, edged down in June….

In June, the number of long-term unemployed (those jobless for 27 weeks and over) was unchanged at 6.8 million. These individuals made up 45.5 percent of unemployed persons….

In June, about 2.6 million persons were marginally attached to the labor force, an increase of 415,000 from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey….

Among the marginally attached, there were 1.2 million discouraged workers in June, up by 414,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.4 million persons marginally attached to the labor force had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities….


Table A (click to enlarge)

A Year-over-year Analysis of the Employment Situation (Table A)

Unemployment Rate - The official unemployment rate has changed by 0.0%, from 9.5% in June of 2009 to 9.5% in June of 2010. This can be attributed to the success of the Economic Recovery Act, if you call ‘no change’ a success. However, according to table A-15, counting all marginally attached and discouraged workers, the U-6 unemployment rate, currently 16.5% was also unchanged year-over-year. (U-6 takes into consideration the total that BLS considers unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force.)

The U-6 unemployment rate stood unchanged at 16.5% year-over-year.

Table A-15, click to enlarge

Civilian Labor Force – According to the BLS, the civilian labor force has declined by a little over 1 million workers, from 154.8 million in June of 2009 to 153.8 million in June of 2010. From table A-16 we learn that out of the 1 million who disappeared, 415,000 are no longer being counted because they are considered to be marginally attached (i.e. persons who want a job, have searched for work during the prior 12 months, and were available to take a job during the reference week, but had not looked for work in the past 4 weeks). Once identified, marginally attached workers are no longer counted as part of the labor force. Out of the 415,000, 414,000 are considered to be newly discouraged workers.

The number of persons no longer counted as part of the labor force, because they have stopped looking for work, increased by 415,000 year-over-year.

Civilian non-institutional population - The civilian population increased by slightly more than 2 million, from 235.6 million in June of 2009 to 237.7 million in June of 2010. So while the population increased by a little over 2 million, the labor force shrunk by 1 million, which is clearly unsustainable.

The employment situation is unsustainable.

Persons no longer in the labor force - The number of persons no longer in the labor force increased by 3.0 million, from 80.9 million in June of 2009 to 83.9 million in June of 2010. We learn from Table A-16 (below) that out of this 3.0 million, 415,000 more than a year ago are considered marginally attached (i.e. persons who want a job, have searched for work during the prior 12 months, and were available to take a job during the reference week, but had not looked for work in the past 4 weeks). We also learn from Table A-16 that a total of 6.5 million Americans who want jobs are not counted as part of the labor force, an increase of 7,000 year-over-year.

The number of marginally attached and discouraged workers rose to 2.6 million, an increase of 415,000 year-over-year.


Table A-16, click to enlarge

Number of unemployed – According to the BLS, the number of unemployed persons fell by 98,000 from 14.7 million in June of 2009 to 14.6 million in June of 2010. However, this figure ignores the increase in those considered marginally attached, so in reality the number of unemployed persons increased by 317,000 (415,000 more marginally attached minus 98,000 fewer unemployed persons) year-over-year. See Civilian Labor Force (above).

The number of unemployed persons rose by 317,000 year-over-year.

Number of employed - The number of persons employed fell by 919,000, from 140.0 million in June of 2009 to 139.1 million in June of 2010. In other words, there are 919,000 fewer people working than there were a year ago. I don’t know why Obama is out boasting about the success of his ‘Recovery Program’ when it is clearly a dud. Speaking in plain English, since there are currently 919,000 fewer jobs than there were a year ago, no jobs have been created or saved within the last twelve months (see Table A above).

There are 919,000 fewer jobs than there were a year ago.

Data Sources:

BLS Employment Situation: http://bls.gov/news.release/empsit.toc.htm

BLS Employment Summary: http://bls.gov/news.release/empsit.nr0.htm

Table A: http://bls.gov/news.release/empsit.a.htm

Table A-15: http://bls.gov/news.release/empsit.t15.htm

Table A-16: http://bls.gov/news.release/empsit.t16.htm

Obama on Jobs: Reality is Not Optional

Reality is not optional

To: Obama and other Quasi-Socialist Progressive Fundamentalist Racism Chasers

In response to various comments regarding my last blog post: Obama on Jobs: Worst Track Record in History.

By: Larry Walker, Jr.

Actually the full quote as attributed to Economist, Thomas Sowell was: "Hope is not reality, and reality is not optional."

Of all the jobs created, and recovered before progressives co-opted the Democrat party, how many were created by the lie that it is up to the Government to borrow money and use it to provide economic stimulus? The answer is none. The old liberal policy used to be called tax and spend (i.e. get the money first and then spend it). The tried and true conservative policy is to cut taxes and let the people spend their own money (i.e. let the free market dictate). The progressive slant has regressed into a new policy called, borrow and spend (i.e. borrow money by the trillion, spend it first, and then tax the hell out of anyone who survives).

We know that the first two methods worked to some degree, although we often disagreed on which was better. All we have to do is go back in history to measure their results. The goal has always been to grow our economy in line with the population, with limited inflation and full employment. But under this new borrow and spend philosophy, all we have is the hope that, if you are ever able to get your head above water, you will be taxed back into oblivion to pay for all the money spent to get you there. In the meantime you just hope that the $250 or $400 per year government handout is enough to get you by.

The hope that an unproven policy will be able to produce the same result as proven methods is not only uncertain, but in this matter impossible. Uncertainty is optional, but reality is not.

Joe Biden recently stated, "We will never be able to recover the eight million jobs that were lost." Why would he say that? Because there is no way that it can be done under progressive ideology. It doesn’t take a rocket scientist to figure that out.

Under progressive ideology, the economy is something that will continue to function efficiently no matter which policies are crammed down its throat: stimulus, health care, energy policy, financial reform, etc... All of which may be noble goals in a fictitious world, but neither has anything to do with economic growth, nor job creation. True, each may create a few (net) jobs in the next 20 to 40 years, but there may not be any need by that time. In the end, you may be able to force all of these wonderful policies upon the peons, but by then no one will care because the great economy that once existed will be no more.

We need an economy that works for us today, not 20 years from now.

In reality, mandatory health insurance won’t do much good if there are no doctors or hospitals to visit. And where will one go to purchase it when all the insurance companies are gone? Renewable energy and carbon taxes won’t do much for the masses then living in cardboard boxes. Financial reform will be for naught if no one has any money left to save or invest. You can’t have it both ways. Either you put jobs and the economy first, or you fail on all counts.

Hoping that an unproven set of policies will work is not reality. We gave it a shot by spending well over $1 trillion, and it didn’t work. The national debt is now almost 100% of GDP and there is nothing to show for it. So what do you want to do? Do you want to keep on borrowing and stimulating until there’s nothing left? Or should we perhaps pause and consider making a u-turn? I say we heed the warning and make a u-turn before it's too late.

We know what works, all we have to do is look back in our history at the policies that made America great.

"Reality is not optional."

___________________________

My previous blog post may also be found at the following sites:

http://www.bookerrising.net/2010/06/larry-walker-jr-commentary-obama-on.html and,

http://aipnews.com/talk/forums/thread-view.asp?tid=15308&posts=1#M40159

Thursday, July 1, 2010

Obama on Jobs: Worst Track Record in History

Obama: Worst President in History Award

Progressive Policies are Losing 4.2 Million Jobs Annually

By: Larry Walker, Jr.

On January 9, 2009, a staff writer for the Wall Street Journal wrote a smear piece entitled, “Bush On Jobs: The Worst Track Record On Record,” in which an attempt was made to show that Bush was somehow the worst President, and that therefore, Conservative economic policies (i.e. tax cuts) don’t work.

According to the staff writer, George W. Bush created a dismal +375,000 jobs per year during his eight year term; Bill Clinton created +2.9 million jobs per year; while George H.W. Bush created +625,000; Reagan prospered by +2.0 million; Carter by +2.6 million; etc… The staff writer also went into population growth during each term and the percentage of change in the population (for whatever reason). You can find the smear piece and the WSJ table here. Following is an excerpt:

President George W. Bush entered office in 2001 just as a recession was starting, and is preparing to leave in the middle of a long one. That’s almost 22 months of recession during his 96 months in office.

His job-creation record won’t look much better. The Bush administration created about three million jobs (net) over its eight years, a fraction of the 23 million jobs created under President Bill Clinton’s administration and only slightly better than President George H.W. Bush did in his four years in office.

Naturally it is important to use this same benchmark to measure how Barack H. Obama stacks up against his predecessors. So I went over to the good old Bureau of Labor Statistics website and made up my own table, based on the raw data. I brought my chart up to date through May 31, 2010. True, Obama has only been in office for 17 month’s, but we can at least get an idea of how he measures up.

Like the WSJ writer, the counts are based on total payrolls between the start of the month the president took office (using the final payroll count for the end of the prior December) and his final December in office (May 31, 2010 for Obama). Thus, there is no blaming the last POTUS for inheriting a bad economy, and no foul in taking credit for inheriting a good one. After all, being President is about leadership, and leaders take what is in front of them and do the best they can.


Net Job Creation by President (Click to Enlarge)

According to my table, Barack Obama has lost a total of -4.2 million jobs per year, making him, to date, the worst President in history. G.W. Bush actually created 1.1 million jobs per year during his eight-year term. Bill Clinton is responsible for 2.3 million jobs in each of his years. George H. W. Bush can lay claim to 881,000 during each of his four years. Reagan gets credit for 2.0 million jobs per year. And finally, even Jimmy Carter can boast in having created 2.6 million jobs per year. Net job creation is so much better than, economy killing, Progressive policies that there really is no comparison.

Now I am not naïve enough to believe that Presidents, or that governments for that matter, are responsible for job creation, but if you want to make that case, at least get the numbers right. It looks like the WSJ staffer padded Clinton’s numbers while taking away from both of the Bush’s. At the same time, he did manage to get both Reagan's and Carter’s numbers right.

In conclusion, thus far, the Progressive policies of Barack H. Obama are failing. There ought to be a law. Actually there is a law. It’s called, 'The Law of Supply and Demand’. When prices fall, demand increases. When taxes are reduced, investment, production and employment increase. And when supply is increased, prices fall, leading to increased demand. Government intervention in the private sector has never worked, and it never will. Reducing the size of government, lowering taxes, and decreasing government regulation actually work after all. We will most definitely be following up.


References:

ftp://ftp.bls.gov/pub/suppl/empsit.cpseea1.txt

http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/