Budget officials flee San Bernardino amid bankruptcy chaos

Comments (5)
morbas wrote:

Citizens need to know the truth about government budgets — national, state and municipal.
The federal budget is $3.8 trillion. Federal plus state plus municipality is $8.06 trillion. The sum total of all personal income is $12.98 trillion. Thus, the governments are operating at 62 percent of total personal income.
With a centralized banking system, the federal government can print more money than collected in revenue; states and municipalities cannot. Taxation at state and municipal levels is less progressive than federal, which burdens the lowest income levels with the highest effective rate; and the upper 2 percent with the lowest effective rate. Thus, municipalities borrow more in a recession, as the lower quintile’ wages are more diminished. We have cities falling into bankruptcy.
Fairness requires top earners pay more
Simply put, the federal and state tax system needs to tax the money, not the people. Poverty/subsistence margin flat rate of taxation is fairness. The upper quintile views fair as the more you make the more you take home. This meets both criteria. The Washington bureaucrats missed a big opportunity to propose a margin flat rate tax that balances the budget. Rates $0-20K 0%, money above $20K 35%; couples freely share; all income bundled and taxed in summation form, no exemptions. And provide business relief with no business taxation with provisions on ‘partnership and disregarded’ businesses to transfer funds into personal accounts as the taxable income. Ends family business inheritance taxation, except when sold for personal profit (always taxable).

Jan 25, 2013 7:15am EST  --  Report as abuse
morbas wrote:

Resolution of the Federal plus State plus Municipality revenue expandature balance: surtax $200K margin of 90% brings in the other 50% of the National Budget. Precendence for this rate was a Federal Income rate of 91.5% at $400K in 1960-62. The $200K 90% margin tax is effectively less than the 1960 rate, as it is a margin tax that is not inclusive of income less than $200K. The math for this is fairly basic and supported by published national state by state income $12.98 Trillion (2011). The Federal Reserve would need to set the rates to balance the budgets, likely based on monetary supply theory.
This proposal would require a National Level of politics that reaches amendment level approval. This would require a national constituency letter writing outcry, that which has not been seen.

Jan 25, 2013 8:05am EST  --  Report as abuse
morbas wrote:

Resolution of the Federal plus State plus Municipality revenue expenditure balance: surtax $200K margin of 90% brings in the other 50% of the National Budget. Precedence for this rate was a Federal Income rate of 91.5% at $400K in 1960-62. The $200K 90% margin tax is effectively less than the 1960 rate, as it is a margin tax that is not inclusive of income less than $200K. The math for this is fairly basic and supported by published national state by state income $12.98 Trillion (2011).
This proposal would require a National Level of politics that reaches amendment level approval. This would require a national constituency letter writing outcry, that which has not been seen.

Jan 25, 2013 8:06am EST  --  Report as abuse
artvet2 wrote:

I smell more corruption in this one!

Jan 25, 2013 8:09am EST  --  Report as abuse
morbas wrote:

To calculate use this:
Tax: (0.35 * (Income over $20K))+(0.55 x (Income over $200K));
single $60k income (0.35 x $40k) = $14k or 23%
married $60k income (0.35 x $20k) = $ 7k or 12%
single $100k income (0.35 x $80k) = $28k or 28%
married $100k income (0.35 x $60k) = $21K or 21%
single $300k income (0.35 x $180k)+(0.55 x $100k)=$118k or 39%
married $300k income (0.35 x $160k)+(0.55 x $100k)=$111k or 37%
single $1Million (0.35 x $980k)+(0.55 x $800k)=$783k or 78%
married $1Million (0.35 x $960k)+(0.55 x $800k)=$776k or 77.6%

Draconian except when you factor NO OTHER TAXATION period.
No (Federal,State,City,County) Property, Fuel(~5%), Sales(~6%), Payroll(~5%), … whatever taxes.

Jan 25, 2013 9:55am EST  --  Report as abuse
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