Taxes on Small Business Compounding Job Loss - Thankfully there is an Answer!
Tax, Spend, Tax some More - America is Bankrupt!
As job losses continue to mount an unhealthy side effect of the current economic climate is working against recovery. Unemployment results in higher claims, and claims result in more money needed to pay those claims, which in turn results in more taxes on business to cover the cost of the claims. More taxes means less money to hire more people. It’s a vicious downward spiral. Sometimes it’s easy to forget that the money used to pay for unemployment comes from the premiums (Taxes) charged to business.
Borrowing from the Federal Government?
Behind the trend are widespread layoffs. The number of people claiming jobless aid has tripled since the recession began. The demand has drained the funds that many states use to pay jobless claims. Nearly half the states are borrowing from the federal government. – Associated Press
Now the bills are coming due. States reset their unemployment insurance taxes at the end of each year, and 33 states will raise them next year, according to the National Association of State Workforce Agencies. The states' tax revenue in the last fiscal year fell $42 billion short of what's needed for unemployment aid. – Associated Press
Can We Drink from an Empty Well?
Now you have to ask yourself where is the Federal Government getting money to loan? The Federal Government is for all practical purposes bankrupt. All they can do is tax and print money. So how does borrowing from the Federal Government solve a shortfall of money needed to pay claims on unemployment?
The National Debt Clock
Are you familiar with the saying “Ignorance is Bliss”? Unfortunately it’s about as logical as covering your eyes to make something disappear. Politicians can talk “recovery” all they want, but it’s akin to covering their eyes. The problems facing our Nation are not fixable under the current inflationary debt policy that is instituted through a Central Bank known as the Federal Reserve.
Take a look at the numbers and you’ll be thoroughly depressed.
The National Debt Clock makes your visit to the gas pump seem like the pump is moving backwards. Seriously the numbers are moving so fast they are nearly incomprehensible. We are not playing Monopoly here people, this is for real!
- US National Debt - $12,000,000,000,000+ That’s 12 Trillion
- Debt per Citizen - $39,000+ That’s right per every man woman and child? Can you just write a check to Uncle Sam to cover your share? Be sure to throw in an equal check for your spouse and each of your children.
- Debt per Tax Payer - $110,000
Now lets add in another $14.2 Trillion in Mortgage debt owed by consumers, and $871 billion in credit card debt. It’s getting fun now right?
Consumers Can Not Stimulate the Economy – Consumers are Broke Too!
The Average savings of an Adult in the United States is $2,769 but the average private debt per citizen is $54,227. So on average an adult is already in the whole $50,000. Now take away the job and who pays the mortgage and the credit card bills?
So to summarize, the Government has no money, individuals have no money, who pays the bills? Where is this “Magic Recovery” going to come from?
The Government’s Magic Recovery Solution
Spend, spend, spend until there is a recovery. Then once this “Magic Recovery” occurs… tax, tax, tax to make up for all the spending.
The problem? Who are you going to tax? America is Bankrupt. How much longer will the American Dollar have any value? It’s based on NOTHING. There are only $3 of hard currency in circulation for every $100 of made up money floating around on computer screens.
Abolishing the Federal Reserve is not just a good idea, it’s the only way out. The Perpetual Debt Model of the Federal Reserve is a cancer upon the people, and there is no cure for this cancer. Time is up! RIP Federal Reserve, hello the Rebirth of America and prosperity. The next 5 years are going to be anything but pleasant.