Economics 101

Man, where to begin. I could write a book on all the things economically going on. Let's hit a few shockers.

President Obama "inherited" under 8% unemployment. He himself said, "If we do not pass the Economic stimulus package we will see a Great Depression style crisis" while "if we pass this Unemployment will not raise above 8%"

Its right now at, 10.2%

Or how about the fact that GM was taken over by President Obama? That's right, the federal government now has a huge stake in these car companies. But don't worry. President Obama said, "They wouldn't make any business decisions." Except, when President Obama had the CEO of GM fired. Or, replaced all but two members of the board. Or, made them rewrite their business plan for a more hybrid friendly one. Not business decisions at all. (By the way, Britain sold some low number like 28 Hybrids in 2008 or something like that. So, those are known as real sellers)

Or how about President Obama's big push to shove socialized medicine on us? Many people don't realize that that's around 17% of the economy that will be snatched up by the Government. Yipee.

Or about the fact that President Obama promises only to tax over 500 K income earners. I mean, 250 K income earners. No, it was 100 K income earners. Well, something like that. Did you know, 70% of people in America are employed by small businesses? Did you know that small businesses file their profit under, what? Income! So he's not taxing rich people. He's taxing small businesses. So what's going to happen when that small business owner has to pay another 30 thousand a year? Someone just lost a job.

Or about the fact that Maryland, along with New York and several other states learned 'startling' news. They created millionaire taxes. And guess what? They lost 120 million dollars in revenue a year. How come? Because the millionaires left to go to more tax friendly states. And that's surprising, how? Most millionaires have second homes, why would they stay where they have to pay more?

Or what about the fact American families are about to get taxed 2000 dollars more a year. Why? Because President Bush saved the average middle income family of four 2000 dollars a year. And now those tax cuts are going to be allowed to expire. When a tax cut expires, its a tax increase because the money was never the Government's to begin with. And that's all we need. Tax increases during a horrid recession.

And then there's the cap and trade bill. Oh man. What a joke. "Saving the environment" bull crap! That bill raised taxes like crazy on all business for 'pollution' and it was about one thing. Limiting business.

Seriously. And this is just part of it. Let's not forget President Obama had the longest stock market drop in history after he was elected. Or the gas prices are going back up. We had em nice and low under President Bush at the end of his term. Or the fact people thought we were in recession during 2006. Seriously. Most people polled believed we were in recession when we had a booming economy by all statistical standards. People can be so stupid.

Or what about the deficit? President Obama wants a 900 Billion dollar healthcare plan. A 900 billion dollar stimulus. He quadrupled the yearly debt in 9 or ten months.

And by the way, where's the great recovery he promised? Doesn't anyone remember? EVIL capitalism destroyed the economy and socialism is what needs to save it? And how come its not saved already?

Bleh.

I could discuss all those economic things ^ But I decided I'd mention them.

No, what I want to do is explain taxation to you. ^_^

Because I realized, many of you might not get taxation.


So, you get together with four friends. Its time to play a fun game! A classic board game. Its Monopoly! Yeah! Each person is a piece and you have money. You're the dog. Cause the dog rocks. And you roll and you buy your first spot. Things are looking good.

The door opens. Oh great, its that kid. He's the bully. He walks in and snorts real loud. "Whatcha doing?"
"Nothing, Itchy Ritchy Stitchy..." you say.
"Monopoly, oh, I'm in!" he says. He jumps onto the couch and everyone groans. He always sucks at playing games.

Anyway, you buy your first land piece. Yay. The game is going well. Someone lands on your space. He pays you when, what?
"Hey, give me part of that," Itchy Ritchy Stitchy says. "You don't understand, you took that money unfairly because you landed on that square first. He had no chance to land there. Plus, I know what to do with your money better."
He snatches your money then puts it in a pile at his feet. Itchy does this with every kid's money. However, Itchy is not given any trouble. He buys any pieces of land he wants. And if he goes into debt, he doesn't try and fix up his business plan. Instead, he takes your money to pay for his new lands.
"Itchy Ritchy Stitchy, you're not playing fairly!" says your friends.
"Hey, shut up," Itchy Ritchy Stitchy says, "If you don't like how to play, then I'll hit you till I get my money."
Everyone quietly lets him continue to play this way. People notice his pile of money is getting large, but so is one other kids. Carl Capital. He's a smart kid who played by the rules and was able to strategically take all the railroads. With a little luck, of course. Someone at the table didn't like this.
"Itchy Ritchy Stitchy," whispers Jo Bliss, "Look at Carl. He's totally cheating. He has the dice rigged so he can only role numbers he wants. And he's the banker. Isn't it suspicious the banker has a lot of money? He must of stolen it."
Itchy Ritchy Stitchy nodded. "Carl, give me the railroads."
"No, they are mine. I bought them all, put in my stakes, and worked hard to get them all. I won't give them up," Carl says. Ouch. Right in the face. Carl was smacked across the face. "No, you aren't giving everyone a fair share. You have to help everyone. Plus, you're cheating people. I can do this much better."
Itchy Ritchy Stitchy took his cards and smiled. He was doing great. Or so he thought.
Sadly, even at his best he was still paying tons of money to the bank. In fact, he wasn't making money at all. But that's okay. He had his handy dandy services. And took a portion of Carl's money.
Jo Bliss's turn. He had spent all his money on Broadway hotels. Ones people never landed on. And he was a long ways from Go. In fact, he was in jail. He looked over at Itchy Ritchy Stitchy, "Hey, this isn't fair. They got all the good spots, I can't get any. Can't you lend me some money? I have a history of bad luck at this game, afterall. I deserve the extra money because its only fair since I've never been good at this game."
"Sure, makes sense to me," Itchy Ritchy Stitchy said. He passed Jo Bliss some of his pile of money. "We need to make sure everyone has a chance to win this game of Monopoly."
"Its not fair for everyone! You're taking all our money and giving it to others for no good reason," Pat Riot said.
"I'm evening out the field," Itchy Ritchy Stitchy growled. "And for that kind of behavior, your little shoe is going to jail."
"You can't do that!" Pat shouted and stood up.
"No, stop, you'll only get hurt. Please no more fighting, if we do this he'll stop," spoke up Maudie rate. She was a quiet girl who hated conflict and was never big one one side of any issue.
"I won't stop!" Pat Riot spoke up. "This is unfair!"
Itchy Ritchy Stitchy seized Pat's money and gave him back his piece. "You're free to leave. Bye."


And etc. I think I could continue. But you should be getting the point.

And I am not saying that taxes aren't needed. They are. Funding the military and some basic public necessities. Absolutely.

But America's pretty brutal with its taxes.

Also, if you're from Canada or are a proponent of Socialism, don't even start giving me you're long list of how Capitalism is evil. This is more of a teaching lesson on taxation. Not really, "Give me your opinion on how Communism is great" blog. Thanks. ^_^