Diary

"Step right up ladies and gents....this is an offer you can't afford to miss."

A Nation of Fools by Peary Perry (www.pearyperry.com)

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“Step right up, ladies and gents….this is an offer you can’t afford to miss.”

The current occupant of the United States White House missed his calling. In former times he would have been extremely successful as a snake oil salesman. Peddling his wares from town to town and then slipping out quietly before anyone had discovered they had been hoodwinked. Another option for him would have been the old shell game, in fact that might have been his profession in a former life since it seems he is so proficient at this today.

Cutting about 17% of the federal budget (next year) while increasing the federal deficit by over 1 ½ trillion dollars and making statements that he (Obama) considered himself to be a good steward of the nations money is ludicrous. This is the consummate shell game.

When confronted with the tax implications which were presented on Monday, the President responded (as if we didn’t know) that “it wasn’t his fault; this was the result of decisions made by the previous (Bush) administration. I wonder how long the American public is going to put up with this classic case of the blame game. Sure there were mistakes made, as well as deficits created by the last administration but wasn’t this guy elected on the platform of Hope and Change? It appears to me that we’re still hoping for something to change. Carrying forward with the same polices as before certainly isn’t anything to write home about. Neither is blaming your current actions on someone else the quality of a responsible leader…this is equal to children placing blame for a broken window. “It’s Georges fault” must echo throughout the halls of the Oval Office on an constant basis.

With the expiration of the tax rates instituted by the Bush administration, all tax brackets will revert back their former levels. The capital gains tax will increase for some American from 15% to 20%. Taxing dividends on stocks is also included in this package of grief from the Obama machine. Raising taxes on investments and individuals who own businesses does not generate jobs and encourage capital expenditures. Issuing more so called ‘stimulus’ money to increase the number of police officers, firefighters and teachers is certainly an admirable program, but hardly helps a capitalistic society. The police, fire and public schools of this nation are not revenue generators, they exist solely as a result of the taxes paid from businesses and individuals. All we are seeing thus far is another attempt to strangle the growth of the business sector while increasing the growth of the governmental sector. This smacks of socialism to me, not a concept of a capitalistic society.

What the struggling housing market needed was another road block such as limiting the amount of interest that could be deducted from an individuals income taxes. Obama and crew apparently are under the impression that anyone, anyone who earns over $200,000 per year is in their eyes…one of the rich and super wealthy. Makes you want to try harder, doesn’t it? Check out the news on taxes today and you’ll see hundreds of suggestions as to how to change your corporate structure as well as suggestions for moving offshore to avoid these higher paying brackets. Are people going to just roll over and pay more because they want to? I don’t think so.

Reduction of the tax deductions for charities is another ‘who came up with this one’ idea included in the current budget. Charities are not funded entirely by super wealthy individuals, but by Americans in all levels of the economic strata. Reducing those deductions will lead to more governmental interference and larger governmental attempts to help the needy in this country. Thus those receiving these handouts will certainly be inclined to become more and more dependent upon the government for their support. Of course for a socialistic driven administration, that would be the purpose, wouldn’t it? Raising taxes on individuals while lowering their deductions in a stagnant economy is fundamentally insane. This country is supported by the growth and prosperity of business. Look at the states that are basically anti-business, one large one, out West starts with a “C” and is currently on the verge of bankruptcy. These states are losing business right and left as firms are moving to more hospitable locations. What do you think it going to happen if the entire nation becomes anti-business?

Does France seem so outrageous? At some point it becomes very attractive.

No, the sad thing about today is that we are currently living in a nation where those in power have for the most part never been in power except in the government. Owning a successful business of any size takes skill as well as being a competent juggler. To manage cash flow against payables and receivables while remaining competitive as well as maintaining a loyal, happy, competent and efficient workforce is not for the faint of heart. Washington is full of incompetents who are telling us how to run our lives while they do not possess the business acumen to operate a snow cone stand in Arizona in August.

The only bright spot in the budget was the elimination of the death tax in 2010; however it is estimated to be reinstated next year. So if you’re planning on leaving anything to your kids, die now…otherwise Obama and company will be knocking on your surviors door.

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