Comes Down To This

By Semperpapa

As the saying goes, there are two certainties in life: taxes and death.
In the case of what the federal government is preparing for the American people, there is a definite confluence of both.

The federal government has been engaging in enough spending in the last few decades that we are now facing a fatal erosion of the economic structure of the Nation. And the so-called bi-partisan crowd in Washington is preparing to lower the deathly boom of taxation on the working people of America.

Entitlement programs are coming to a pimply head, showing, once again, that they constitute the demise of any economic structure. Add to them the feeding frenzy of frivolous spending, better known as pork, and the picture becomes clearer.

Without trying to absolve past administrations of their complicity with the problem (there is no absolution for them either), we are now faced with a national fiscal crisis that has seen no precedent in our country. President Obama has created a commission, yes another bureaucratic entity, aimed at looking at possible solutions for the disastrous deficit we are facing: the National Commission on Fiscal Responsibility and Reform. Sure a catchy name for a commission, but one that is steering clear of the real issues affecting the orgy of federal spending and instead focusing more on the way to make the working people of America pay for the government’s excesses, again.

So what is the good National Commission on Fiscal Responsibility and Reform looking at.
For starter, they are considering the abolishing of the mortgage interest tax deduction for home owners. According to the Wall Street Journal eliminating the deduction could bring into the government coffers, up to $1 trillion.
I am not an expert, but my common sense tells me that if mortgage interest tax benefits are killed, the incentive for many to own a home is removed. Such deductions are very important and decision making for many who like to keep more of the money we earn.
New York State governor Patterson signed into law some form of luxury tax aimed at hitting the richest of New Yorkers and bring billions of dollars into the state’s revenue hungry treasury. Even Patterson had to admit that the tax ended up costing the state billions in revenue loss, because many of the “rich” just plain left the state.
The change the Commission is looking at is going to have the opposite result, just as in the case of New York’s luxury tax. Many will get out of home ownership or will not seek it at all. And that is not exactly what the housing industry needs these days.
And in California it could have a devastating result when combined with the desires of Jerry Brown, should the man become Governor. Brown has always been opposed to the provisions of Prop 13, controlling the property taxes due to the State. During his 2010 campaign, Brown has hinted more than once that every aspect of the state’s fiscal current situation is on the table if he is elected. It is only obvious that Moonbeam will, in such eventuality, take aim at the abolition of the Prop 13. What that translates in practice is a doubling or tripling of the property taxes California homeowners would have to pay the state.
For many, and I am one of them, such increase would mean that I could not afford to own my home any longer. And without being able to get a tax relief for the mortgage interests, why in hell would I want to own a home? Why would anybody?

But the extra money the federal government would take in is needed to pay for all those members of American society that are receiving a free ride on the back of the producing class.
Similarly, Gerry Brown needs the extra money to send illegal aliens to college free of tuition, and to provide all the comforts of American life to millions of illegal aliens.
He made such a statement just couple of days back to pander to the Hispanic voters, and, low and behold, Brown has had a small surge in the polls. Maybe the Hispanic voters will rally to his side just as Blacks did to Obama.
I ask again: what is all this going to do for the housing industry?

Returning to the “work” of the National Commission on Fiscal Responsibility and Reform, they are also looking at the elimination of the child tax credit.
So while the takers of our society will continue to have children as a mean of subsidy increase and will still remain in the 50% of the population that pays no taxes at all, the portion of the population that still remains productive for our society will see its tax burden go up if they have children.
The future of America may be already showing in Britain today, where the most frequent name for newborn boys is Mohamed, and that is not due to British people preference for exotic names.

The elections of November 2, 2010 have been dubbed as the most important in our history, and I am absolutely convinced of that. All the voting frauds appearing daily in states with advanced voting shows that the Democrats are desperate to avoid getting wiped out.
At stake is the difference between handing our country over to the enemy, from Obama to Osama, or to take the country back on the road of exceptionalism and efficiency that was once its trademark. It’s all up to us.

Just my thoughts!