{"id":1207,"date":"2008-09-30T20:06:30","date_gmt":"2008-10-01T01:06:30","guid":{"rendered":"http:\/\/www.yuriar.com\/wp\/?p=1207"},"modified":"2008-09-30T20:06:30","modified_gmt":"2008-10-01T01:06:30","slug":"bailout-fail","status":"publish","type":"post","link":"https:\/\/yuriar.com\/katp\/2008\/09\/30\/bailout-fail\/","title":{"rendered":"Bailout FAIL."},"content":{"rendered":"

I will not trade tomorrow’s freedoms for prosperity today.<\/span><\/p>\n

This is a great follow up video to the one I posted<\/a> a few days ago.\u00a0 America, take note who covered for these companies, and who it was that was trying to blow the whistle years ago.<\/p>\n

[youtube]http:\/\/www.youtube.com\/watch?v=_MGT_cSi7Rs[\/youtube]<\/p>\n

Even my 5 year old understands that this “Bailout” is a bad idea. My FIVE year old!\u00a0 When explaining this to my kids this morning, I asked them, where do you think the government will get the money for this?\u00a0 My 5 year old Diva said, “From us.”<\/p>\n

Let me break this down…\u00a0 Here is what happened:<\/p>\n

Way back under President Jimmy Carter, The Community Reinvestment Act was enacted that forced banks to offer sub-prime mortgages – essentially mortgages to people with bad credit and little hope of actually paying them off.\u00a0 This was made even worse under the Clinton Administration.\u00a0 In order to avoid the losses, banks would sell these bad, risky mortgages to Fannie May & Freddie Mac.\u00a0 The FMs then sold packages of mortgage deals to investors, claiming that they were “riskless.”<\/p>\n

When people defaulted on the loans, the investors had reason to worry.\u00a0 Suddenly their investment was gone.\u00a0 But where did the money go?\u00a0 Into the pockets of Democrats like Chris Dodd and Barak Obama.\u00a0 Franklin Raines managed to embezzle a couple of million from Fannie May before he left, and now he is advising Obama on all this!\u00a0 Unreal.<\/p>\n

Republicans tried to blow the whistle on all this.\u00a0 as far back as 2003 the Bush Administration was calling for reform at Fannie & Freddie. McCain pushed for reform in 2005.\u00a0 There are numerous other attempts by republicans to stop this from happening, but the Democrats stopped them every time.\u00a0 Why?\u00a0 Follow the money<\/a>.<\/p>\n

Meanwhile, the same people in the government who screwed this up are now the ones telling us that we have to throw huge wads of taxpayer cash at this and fix it. Ex-squeeze me, baking powder?\u00a0 I don’t think so.<\/p>\n

How’s this for a solution – Cut Taxes.\u00a0 All of them.\u00a0 Cut business tax, eliminate capitol gains tax, cut income tax, cut them all, and none of this, expires in 3 years crap, Cut them permanently.<\/p>\n

Why would that work?\u00a0 Economics 101, you ready?\u00a0 It would keep the money in the hands of the people.<\/em> Seriously.\u00a0 Government types always fear that cutting tax mean they will have less money, but they are wrong!\u00a0 If you cut the income tax, I can keep more of my money.\u00a0 If I have more money, I can buy more things like, say, toys for my kids.\u00a0 If alot of us have more money, and buy more toys, then the toy company has an increase in demand. That means they will have to hire new people to make the toys so they can keep the supply up with the demand.<\/p>\n

Now, lets say we cut the tax burden on businesses.\u00a0 Now those business get to keep more of their profit.\u00a0 They get to put that money back into the business, and grow, which means more revenue. Growth means hiring more people.\u00a0 Hiring more people means more people paying income tax! Growth can also mean giving raises, which means more people in the higher tax brackets.\u00a0 Besides, 10% of 50.00$ is more then 30% of 10.00$.\u00a0 So, charge the business of America a lower tax rate, allow for growth which leads to more tax, not less, as well as more employment, which equals more income tax revenue!<\/p>\n

But now, the dreaded Capitol Gains tax<\/a>.\u00a0 Many people don’t understand this.\u00a0 I don’t think Barak Obama understands this.\u00a0 He keeps saying he will cut the capitol gains rate for small business, but small business does’t pay capitol gains, small business pays income tax on a Schedule C.\u00a0 Capitol Gains is paid on money you would make if you play the stock market, more specifically, it’s money made selling stocks and bonds.\u00a0 So if you buy a stock, no tax, but if you sell it for a profit, you will pay the tax.\u00a0 So why should we cut this tax altogether?\u00a0 Because investing in stocks and bonds helps our nation’s economy, and helps our nation grow.\u00a0 More people would be willing to play the market if they weren’t concerned with the tax.<\/p>\n

Yesterday, the market dropped 777 points.\u00a0 Basically, that means alot of people were selling, but not alot were buying.\u00a0 It’s the old supply and demand in effect again.\u00a0 Big supply + low demand = lower prices.\u00a0\u00a0\u00a0 But, if we eliminate the capitol gains tax…\u00a0 Well, people wouldn’t worry about paying high taxes if they made a profit, and more people would jump in.\u00a0\u00a0 Small supply + big demand = higher prices.\u00a0 Higher DOW, NASDAQ, S&P means better economy, more value to each stock, better chance of turning a profit, retirment accounts would be worth more, it’s a good thing!<\/p>\n

But to just throw more money into a corrupt and failing system? That’s the very definition of insanity – doing the same thing over and over again and expecting a different result.\u00a0 This “Bailout” is not the answer.\u00a0 Tax cuts would be a great place to start.\u00a0 Instead of handing the American people’s money over to a bunch of banks and government agencies that failed us the first time, let us keep the money and invest it how we see fit, be it a home, a car, or a big screen tv.<\/p>\n","protected":false},"excerpt":{"rendered":"

I will not trade tomorrow’s freedoms for prosperity today. This is a great follow up video to the one I posted a few days ago.\u00a0 America, take note who covered …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[20],"tags":[],"class_list":["post-1207","post","type-post","status-publish","format-standard","hentry","category-politics"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/posts\/1207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/comments?post=1207"}],"version-history":[{"count":0,"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/posts\/1207\/revisions"}],"wp:attachment":[{"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/media?parent=1207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/categories?post=1207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yuriar.com\/katp\/wp-json\/wp\/v2\/tags?post=1207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}