Fiscal Cliff. Thrill ride to fiscal sanity or the end of civilization as we know it

ironeagle2006

Active Member
Well it is Going to Hurt that is for one thing. Also will cause the Economy to Collapse as we have been limping along and when you hammer the People that are the Job Creators with Higher Taxes along with their SBA's plus the Other taxes that will go into effect like the 3.8% taxes on all home sales to Fund Obamacare your going to see this economy that was limping along turn south so fast that you will not even be able to blink.
 

reefraff

Active Member
The 3.8 is only on investment income. Do you really think businesses haven't accounted for us going over the cliff, at least for a while?
 

ironeagle2006

Active Member
Wrong I asked my Uncle on that one that is a CPA and he flat out told me that if I sold my house next year meaning after Jan1 2013 I would have to Pay the Federal Government 3.8% of whatever the thing sold for as a TAX on the Sale. So if my home sold for 50K I woulf have to PAY the IRS 1900 bucks for the right to SELL my home. Why would he know this he is getting ready to sell his Family owned Farm and he is not very Happy. He is looking at a Tax Bill on that one for over 90000 Bucks on the Land alone.
 

reefraff

Active Member
Quote:
Originally Posted by ironeagle2006 http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506117
Wrong I asked my Uncle on that one that is a CPA and he flat out told me that if I sold my house next year meaning after Jan1 2013 I would have to Pay the Federal Government 3.8% of whatever the thing sold for as a TAX on the Sale. So if my home sold for 50K I woulf have to PAY the IRS 1900 bucks for the right to SELL my home. Why would he know this he is getting ready to sell his Family owned Farm and he is not very Happy. He is looking at a Tax Bill on that one for over 90000 Bucks on the Land alone.
Either you misunderstood your uncle or he needs to brush up on the law. (Unless he is talking about some Illinois tax garbage, I dunno about that) Besides, we don't have a real estate transfer tax (yet lol!) so you only are taxed on the capital gain on your home (increase in the value of your investment) and as long as you have lived in it as your primary residence you get to exempt a gain of up to 500K for a married couple. I am not a CPA but have done my own taxes since 1985 and unlike Turbo tax timmy I've never made any blatant errors.
Here's the 0bama care law.
Medicare Tax on Investment Income
Right now, the maximum federal income tax rate on long-term capital gains and dividends is only 15%. Starting in 2013, the maximum rate on long-term gains is scheduled to go up to 20% and the maximum rate on dividends is scheduled to increase to 39.6% as the so-called Bush tax cuts expire.
But that's not all. Also starting in 2013, all or part of the net investment income, including long-term capital gains and dividends, collected by higher-income folks can get socked with an additional 3.8% "Medicare contribution tax." Therefore, the maximum federal rate on long-term gains for 2013 and beyond will actually be 23.8% (versus the current 15%) and the maximum rate on dividends will be a whopping 43.4% (versus the current 15%). Yikes!
The additional 3.8% Medicare tax will not apply unless your adjusted gross income (AGI) exceeds: (1) $200,000 if you're unmarried, (2) $250,000 if you're a married joint-filer, or (3) $125,000 if you use married filing separate status.

The additional 3.8% Medicare tax will apply to the lesser of your net investment income or the amount of AGI in excess of the applicable threshold. Net investment income includes interest, dividends, royalties, annuities, rents, income from passive business activities, income from trading in financial instruments or commodities, and gains from assets held for investment like stock and other securities. (Gains from assets held for business purposes are not subject to the extra tax.)
 

reefraff

Active Member
Don't know what to think about the deal. It fixes nothing. Unless the Republicans decide to go to the wall on the debt ceiling and get some serious spending cuts things look bleak. I am seriously considering starting to cash out IRA's and the 401K and buying Ag land somewhere. We want to live rural anyway and being able to grow your own food is a big bonus.
 

bionicarm

Active Member
Quote:
Originally Posted by reefraff http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506287
Don't know what to think about the deal. It fixes nothing. Unless the Republicans decide to go to the wall on the debt ceiling and get some serious spending cuts things look bleak. I am seriously considering starting to cash out IRA's and the 401K and buying Ag land somewhere. We want to live rural anyway and being able to grow your own food is a big bonus.
You have to cut SS, Medicare, and the military if ytou want to reduce the deficit. Nobody wants to touch those. Unitl you get into serious discussions about whacking those programs, you're wasting your time.
 

beth

Administrator
Staff member
Quote:
Originally Posted by Bang Guy http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506130
A ride down the "fiscal cliff" is our best chance of having a healthy country in the years to come. Tax increase + spending cuts = reduced debt and a balanced budget. Anything else is going to make the debt too large to ever pay off and will ruin this great nation.
There is no guarantee, and history tells us, that our government will take the extra $ and blow it as well, and not pay down the debt.
 

reefraff

Active Member
Quote:
Originally Posted by bionicarm http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506291
You have to cut SS, Medicare, and the military if ytou want to reduce the deficit. Nobody wants to touch those. Unitl you get into serious discussions about whacking those programs, you're wasting your time.
EVERYTHING HAS TO BE CUT. SS and Medicare will have to be cut BUT we should start with the BS and wasteful garbage first. It isn't going to make a huge difference but it sends the right message about where our priorities are.
 

bionicarm

Active Member
Quote:
Originally Posted by reefraff http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506297
EVERYTHING HAS TO BE CUT. SS and Medicare will have to be cut BUT we should start with the BS and wasteful garbage first. It isn't going to make a huge difference but it sends the right message about where our priorities are.
Define "BS and wasteful garbage". That comprises less than 17% of the annual budget. Most people on the Right define that as Welfare, Food Stamps, and Unemployment benefits. So take that completely away. What do the millions of people who rely on those programs do to support their livelihood? And please don't say "Go get a job". There's a reason why our unemployment rate in hovering at 9%. There are good, honest people out there that would LOVE to have a job, any job. But they're not out there. And the one's that are available you have to have 2 or 3 just to make enough money to afford a sleezy apartment, food, basic necessities, pay the basic bills (water, electric, gas), and clothing. That's not even factoring in if you have 1 or 2 kids. So what do you do with these people? Use the "survival of the fittess" logic, or "Sucks to be you. Enjoy living under that bridge" ideology? A sector of our population will always be poor and destitute. It's been that way for generations. There's just not enough available opportunities for every single American to fulfill that "American Dream" of living the comfortable life in their own private home. Our economic system isn't geared for that. Lives simply aren't that simplistic any longer. Unless you become "tech savvy", or understand how this world spins as it does these days, you're destined to be a Burger King Cook for the rest of your life.
 

reefraff

Active Member
Quote:
Originally Posted by bionicarm http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506341
Define "BS and wasteful garbage". That comprises less than 17% of the annual budget. Most people on the Right define that as Welfare, Food Stamps, and Unemployment benefits. So take that completely away. What do the millions of people who rely on those programs do to support their livelihood? And please don't say "Go get a job". There's a reason why our unemployment rate in hovering at 9%. There are good, honest people out there that would LOVE to have a job, any job. But they're not out there. And the one's that are available you have to have 2 or 3 just to make enough money to afford a sleezy apartment, food, basic necessities, pay the basic bills (water, electric, gas), and clothing. That's not even factoring in if you have 1 or 2 kids. So what do you do with these people? Use the "survival of the fittess" logic, or "Sucks to be you. Enjoy living under that bridge" ideology? A sector of our population will always be poor and destitute. It's been that way for generations. There's just not enough available opportunities for every single American to fulfill that "American Dream" of living the comfortable life in their own private home. Our economic system isn't geared for that. Lives simply aren't that simplistic any longer. Unless you become "tech savvy", or understand how this world spins as it does these days, you're destined to be a Burger King Cook for the rest of your life.
Look at the spending for several conferences that have been in the news recently. And that's just the stuff we've heard about. Funding absurd studies, one we paid 350K for a guy to teach a shrimp to run on a treadmill. As far as welfare quit giving people cell phones. Should a family of 4 making 60K a year really get healthcare through medicaid? I don't have a issue paying for stew meat and tatters but a cell phone isn't a vital need. Quit giving those away. Do congressmen and Senators really need staff's of over 100? Do they need to be driven around in top of the line SUV's? Foreign aid, Multitudes on unused federal buildings that could be sold off to actually generate income and save on expenses.
We'll eventually have to address SS and Medicare but we should make the cuts in other areas first. Who knows, If they do maybe the economy will jump back into gear and the cuts to SS and medicare wont have to be quite as big.
 

darthtang aw

Active Member
Define "BS and wasteful garbage". 
just a few examples...
A reality TV show in India. The Department of Agriculture’s Market Access Program spends $200 million a year to help U.S. agricultural trade associations and cooperatives advertise their products in foreign markets. In 2011, it funded a reality TV show in India that advertised U.S. cotton.
Studying pig poop. The Environmental Protection Agency awarded a $141,450 grant under the Clean Air Act to fund a Chinese study on swine manure and a $1.2 million grant to the United Nations for clean fuel promotion.
Amtrak snacks. Federally subsidized Amtrak lost $84.5 million on its food and beverage services in 2011 and $833.8 million over the past 10 years. It has never broken even on these services.
Using military exercises to boost biofuels. The U.S. Navy bought 450,000 gallons of biofuels for $12 million—or almost $27 per gallon—to conduct exercises to showcase the fuel and bring it closer toward commercialization. It is the largest biofuel purchase ever made by the government.
Conferences for government employees. In 2008 and 2009 alone, the Department of Justice spent $121 million to host or participate in 1,832 conferences.
“RoboSquirrel.” $325,000 was spent on a robotic squirrel named “RoboSquirrel.” This National Science Foundation grant was used to create a realistic-looking robotic squirrel for the purpose of studying how a rattlesnake would react to it.
Cupcakes. In Washington, D.C., and elsewhere across the country, cupcake shops are trending. The 10 cupcake shop owners who received $2 million in Small Business Administration loan guarantees, however, can only boast so much of their entrepreneurial ingenuity, since taxpayers are backing them up. (Clemson is this you?)
Food stamps for alcohol and junk food. Though they were intended to ensure hungry children received healthy meals, taxpayer-funded food stamps were instead spent on fast food at Taco Bell and Burger King; on non-nutritious foods such as candy, ice cream, and soft drinks; and on some 2,000 deceased persons in New York and Massachusetts. Food stamp recipients spent $2 billion on sugary drinks alone. Improper SNAP payments accounted for $2.5 billion in waste, including to one exotic dancer who was making $85,000 per year.
Beer brewing in New Hampshire. Despite Smuttynose brewery’s financial success and popularity, it is still getting a $750,970 Community Development Block Grant to build a new brewery and restaurant facilities.
A covered bridge to nowhere. What list of government waste would be complete without a notorious “bridge to nowhere”? In this case, it’s $520,000 to fix the Stevenson Road Covered Bridge in Green County, Ohio, which was last used in 2003.
 

bang guy

Moderator
Quote:
Originally Posted by bionicarm http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506341
Define "BS and wasteful garbage".
$430 million for Hollywood through “special expensing rules” to encourage TV and film production in the United States. Producers can expense up to $15 million of costs for their projects.
$331 million for railroads by allowing short-line and regional operators to claim a tax credit up to 50 percent of the cost to maintain tracks that they own or lease.
$222 million for Puerto Rico and the Virgin Islands through returned excise taxes collected by the federal government on rum produced in the islands and imported to the mainland.
$70 million for NASCAR by extending a “7-year cost recovery period for certain motorsports racing track facilities.”
$59 million for algae growers through tax credits to encourage production of “cellulosic biofuel” at up to $1.01 per gallon.
$4 million for electric motorcycle makers by expanding an existing green-energy tax credit for buyers of plug-in vehicles to include electric motorbikes.
 

darthtang aw

Active Member
91 Million in tax breaks to the NFL that operates as a non profit yet pulls in a billion dollars annually and has the highest paid CEOs and executives in the non profit world.
 

bionicarm

Active Member
Quote:
Originally Posted by Darthtang AW http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506357
In just a few short minutes, Bang and I have cut roughly 5 billion from the budget. Without even looking hard.
But who "sneaks" those types of pork-filled legislation into the bills? LOBBYIST. They've just found this same crap in this proposed $60 billion Sandy Relief bill. To get rid of these types of wastes, you'd have to completely revamp how "back door deals" and they way things operate in Washington. Tell me that's going to happen.
 

darthtang aw

Active Member
But who "sneaks" those types of pork-filled legislation into the bills?  LOBBYIST.  They've just found this same crap in this proposed $60 billion Sandy Relief bill.  To get rid of these types of wastes, you'd have to completely revamp how "back door deals" and they way things operate in Washington.  Tell me that's going to happen.
Who votes them through? Who puts the bill on the table? And what does the media do to flag these issues? and who holds the ultimate veto?
 

bang guy

Moderator
Quote:
Originally Posted by bionicarm http:///t/393948/fiscal-cliff-thrill-ride-to-fiscal-sanity-or-the-end-of-civilization-as-we-know-it#post_3506361
But who "sneaks" those types of pork-filled legislation into the bills? LOBBYIST. They've just found this same crap in this proposed $60 billion Sandy Relief bill. To get rid of these types of wastes, you'd have to completely revamp how "back door deals" and they way things operate in Washington. Tell me that's going to happen.
No, the lobbiests do not add anything to bills. The elected officials in Congress do that.
 
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