The Angry Trader: More Fuzzy Math and the Same Bullshit

So after waiting and waiting and waiting some more, we get Obama's answer to how he is going to fund his new jobs bill. Taxes, Taxes and Taxes. The size and scope of the spending cuts...even over 10 years are pathetic and will do NOTHING to change the underlying fundamentals of our debt crisis and floundering economy.

First, the jobs bill is just another example of tax and spend. Think I am wrong? Think the president is really going to do something different this time? Here are the details as laid out by the Miami Herald (GO CANES!!)>

NOTHING is new, NOTHING is different. I guess that makes it right:

"Among his tax proposals:

Letting the Bush tax cuts expire as scheduled on Dec. 31, 2012 for individual incomes above $200,000 and family incomes above $250,000. The total over 10 years: $800 billion;
Limiting itemized deductions for the same incomes. Total over 10 years: $400 billion;
Closing loopholes for oil and gas companies. Total: $40 billion;
Raising taxes on investment fund managers. Total: $18 billion;
Raising taxes on owners of corporate jets. Total: $3 billion.

The one line of spending cuts out of the whopping $3 Trillion in savings?

$580 billion will come from cuts to mandatory spending, including in Medicare and Medicaid."

"Obama also will propose principles for tax reform — including one he'll call the "Buffett rule" after friend Warren Buffett, the billionaire investor. Buffet has lamented that he pays lower overall taxes than his secretary because he makes most of his income off of the sale of stocks, and capital gains on stocks are taxed at a lower rate than even middle incomes. With that in mind, Obama will urge that any tax reform make sure millionaires pay the same overall tax rate as the middle class."

A few quick observations:

As of sometime earlier in the day our national debt was $14,712,175,755,103.91 That's TRILLION. Our president is talking about $3.1Trillion in savings but only $1.5 are from spending cuts. The remainder are from the above noted tax increases! The math again does not add up! I don't care about paying higher taxes now. Things are so bad, that I get it...I need to. But...spending more is NOT the answer and proposals like what we have seen out of the White House are not going to fix/solve a thing!

"Man I thought picking off my
house in 2009 was a good buy!
Now it looks like it's a goodbye
house, goodbye car, goodbye
boat...."

2. Housing is what took us into this global abyss and it is what will take us out of it. By cutting itemized deductions, you are hurting home owners. Interest payments on a mortgage are generally the largest single deduction a home owner takes. That is now going away. Moreover in my most recent housing checks, things continue to deteriorate!! Short sales in affluent neighborhoods around the country are mounting. This brings every one's property value down, making your net worth less and less (if at all) in your home. It makes you poorer(sorry for the poor English). It weighs on you and keeps you on your wallet.

Like this poor lady, our economy is out of gas and too
tired to get herself up....

3. Letting the Bush tax cuts expire post the next presidential election will save an estimated $800Billion over 10 years. Did I mention that the national deficit is north of $14 TRILLION?? How the fuck can $800 Billion over 10 years matter? Moreover, these "tax breaks" are monies that get spent rather than go to government coffers! That is money business owners can spend on their company, their employees or on their families. I put forth to all of you that this money would be better off being put back into the economy via the natural order of capitalism.

4. So out of a $3+ Trillion savings package only $580B will come from cuts. The rest will come from tax increases. I get that we need to pay more but again....this math does NOT work. This math is CLASS WARFARE, and it is clear to this author, yet again, that our country is being run by a man who desires to see socialism alive and well in America.