Ron Paul
Infowars.com
March 1, 2012

Senator Jeff Sessions, ranking member of the Senate Budget Committee has pointed out that our per capita government debt is already larger than Greece’s. Per person, our government owes over $49,000 compared to $38,937 per Greek citizen. Our debt has just reached 101% of our Gross Domestic Product. Our creditors see this and have quietly slowed down or stopped their lending to us. As a result, the Federal Reserve has been outright monetizing debt as a way to patch things together and keep the economy on life support a little longer. There is rapidly shrinking demand for our debt, and confidence in the dollar is falling. This phenomenon is hidden only by the fact that confidence in all other fiat currencies is falling faster.

None of this seems to really alarm the administration, obviously, as they have just released a budget that accelerates spending and borrowing. The reason the debt and deficits plague the economy, according to this administration, is that the American economy is not taxed enough. Therefore, hidden in the fine print of the budget is a provision that ramps up the corporate dividends tax rate from its current 15% to 39.6%. In addition, certain deductions and exemptions will be phased out; an additional 3.8% Obamacare investment tax surcharge will be tacked on, bringing the effective dividend tax rate to 44.8% in 2013. Keep in mind, this is not just a tax on big business, this is a tax on anyone who depends on dividend income to live – retirees will be hit hard by these changes and dividend yielding stock prices will adjust downward rapidly to reflect their decreased value.

Not only this, but the Obama administration is worsening the uniquely American policy of taxing income of US based companies earned overseas. No other country presumes to tax globally in this manner, so it amounts to a huge penalty for basing a company in the US. Companies have been able to manage this penalty by deferring taxation until it is repatriated or by paying dividends. What will happen to US based businesses with strong international ties if these allowances are abolished as the Obama administration proposes? A massive wave of permanent capital flight will undoubtedly cause the already high levels of unemployment to rise.

Businesses are struggling and failing in this economy. The government ultimately depends on a healthy business climate to provide jobs and a tax base. It is penny wise and pound foolish to add to business tax burden in a misguided attempt to close the colossal gap between our government’s revenue and spending. Rather than crippling and absorbing more of our shrinking economy, government needs to be drastically cut – not in 10 years, but immediately.

Those who understand the underpinnings of the dollar and how the Federal Reserve works have known for some time that we are on an unsustainable course, that major chaos is in store if nothing is done quickly to reform things. Politicians pay lip-service to reforms that never materialize or turn out to be at best small and meaningless, or at worst actively harmful. It seems more and more inevitable that because the necessary changes would be too inconvenient for the elites to enact now, we will get them later Greek-style, through collapse and chaos.

Paul’s latest article comes from his congressional website.

Views: 139

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Comment by suzie on March 3, 2012 at 12:15am

Get the wheel barrels out!  .. soon they will have "the solution" a one world currency which has been the plan all along.. get ready to decide if you will be chipped.  Many will hate the New world order many will die fighting it!  H.G. Wells 1934  

We Social-Democrats always stand for democracy, not “in the name of capitalism, ” but in the name of clearing the path for our movement, which clearing is impossible without the development of capitalism. -Lenin

Let the “socialist” snivellers croak, let the bourgeoisie rage and fume, but only people who shut their eyes so as not to see, and stuff their ears so as not to hear, can fail to notice that all over the world the birth pangs of the old, capitalist society, which is pregnant with socialism, have begun. -Lenin

Comment by Cryptocurrency on March 2, 2012 at 11:34pm

Oh it's all just a big mess isn't it?

Comment by apeman2502 on March 2, 2012 at 10:52pm

 I know, INFLATION. Who has all the dollars and who earns them. I need trhe grocery store and the gas station(who is trying to make themselves kings). nationalize gas as well. tell Bush, Cheny, and the Rockefellers that they have had their fill. They did 9-11, blew up the nuke and the DH oil well and they deserve to lose everything. They also have been responsible for the recent deaths of a couple million INNOCENT foreigners and many thousands of Americans because of their lies. Justice, then peace.

Comment by apeman2502 on March 2, 2012 at 10:48pm

  Let's figure out how much interest on the national debt we have paid the central bank over the years and bail ourselves out. And we should print what we DO pay with our own printing press like they hire us to do to sell to them at $100.00 a pallet load.

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

John Miller replied to MAC's discussion BREAKING! UFO whistleblowers drop BOMBSHELL on D.C. | Redacted with Natali and Clayton Morris
"Crazy how these whistleblower stories are finally making it into bigger conversations. Makes you…"
10 hours ago
Burbia favorited tjdavis's blog post The Dems Love Their Demons
21 hours ago
John Miller commented on tjdavis's photo
Thumbnail

Comprehensive Coverage

"That car needs an exorcism, not an oil change."
yesterday
John Miller commented on tjdavis's blog post The Dems Love Their Demons
"If the Dems are dating demons, then that AI romance shoot was basically engagement photos."
yesterday
John Miller replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"Wouldn't be surprised if there's a whole lot more buried under the surface here."
yesterday
Less Prone favorited rlionhearted_3's photo
yesterday
Less Prone left a comment for John Miller
"Welcome John."
yesterday
Doc Vega posted a blog post

The Saga of Ape Canyon Revisited

 In the years that I’d written for the Plano Star Courier I got several invitations to go on…See More
yesterday
John Miller is now a member of 12160 Social Network
yesterday
Less Prone favorited tjdavis's photo
yesterday
tjdavis posted a photo
yesterday
Burbia posted a video

The lIIumlnatl Stallions: MethyIene Bluecifer & Mind-Control Horses [ FULL DOCUMENTARY ]

🐴🦄🐸 Get the NEW "lIIumlnatl Animal Coloring Book!" 🐴🦄🐸NOW AVAILABLE ON AMAZON - CLICK HERE: https://amzn.to/3SYgAkC🔑 Get MORE Access to the Secret Vid...
yesterday
Doc Vega commented on Doc Vega's blog post Memorial Weekend Getaway Horror Story
"Less Prone thanks for your support Buddy! "
Friday
Doc Vega replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"cheeki kea, I really appreciate the reporting of Sky News. I think they've done a great…"
Friday
Doc Vega posted a blog post

When

 Sad blue eyed poet rehearses his craftJust took a salvo in the compartment aftHis chances of…See More
Friday
cheeki kea replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"You're damn right there Doc V. but we may never know exactly where all the funding came from…"
Friday
cheeki kea commented on tjdavis's photo
Thumbnail

Me-Again

"Oh Look a new version of Megan, can't say the old version looked to flash either. Seems like…"
Friday
Doc Vega replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"This asshole had an incredible number of overseas connections and incoming money from unnamed…"
Wednesday
rlionhearted_3 posted photos
Wednesday
cheeki kea replied to cheeki kea's discussion Tartaria
"It's been interesting reading the comments from the Hungarian Tartaria fans on social media…"
Tuesday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted