Jul 18, 2010

Commerce argument fails. Obamacare defended as a tax.

Report excerpt:
Changing Stance, Administration Now Defends Insurance Mandate as a Tax

WASHINGTON — When Congress required most Americans to obtain health insurance or pay a penalty, Democrats denied that they were creating a new tax. But in court, the Obama administration and its allies now defend the requirement as an exercise of the government’s “power to lay and collect taxes.”
And that power, they say, is even more sweeping than the federal power to regulate interstate commerce.
Administration officials say the tax argument is a linchpin of their legal case in defense of the health care overhaul and its individual mandate, now being challenged in court by more than 20 states and several private organizations.
More from source

Video: Deleted video restored. Obama Deception

This video had 6 million hits, got deleted from YouTube.

Video: 2011 tax cuts expire, rates increase, deductions/exemptions phase out, credits cut

First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. 

These will all expire on January 1, 2011:

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:

The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States , and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington , D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. 

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired. The major items include:

The AMT will ensnare over 28 million families, up from 4 million last year. According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses. There are literally scores of tax hikes on business that will take place. The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.


H/T http://regularthoughts.blogspot.com/2010/07/regular-guy-speaks-at-tea-party.html video
H/T http://shoutfirst.blogspot.com/2010/07/bracing-for-big-tax-hit.html text

Montana Public Schools to teach oral sex and anal penetration in 5th grade if proposal passes sex-ed.

If the proposal passes:
"By fifth grade, they are taught there are several types of intercourse, and by the sixth grade, the draft document states that students should, “Understand that sexual intercourse includes but is not limited to vaginal, oral, or anal penetration; using the penis, fingers, tongue or objects.”"

Feds shut down 1000s of blogs; ignore due process & 1st amendment


Folks if  http://divine-ripples.blogspot.com/ ever gets shut down, I own another domain named 
http://www.divine-ripples.com/ where I will continue informing you of the news.

Excerpt:  July 17, 2010

"Once again, the Obama administration has violated the Bill of Rights. Earlier this month, the feds took down a free Wordpress blogging platform and disabled more than 73,000 blogs. The action was completely ignored by the corporate media. The site, Blogetery.com, was told by its hosting service that the government had issued orders to shut down the site due to a “a history of abuse” related to copyrighted material."...
"Blogetery.com claimed the shut down of 73,000 blogs “was not a typical case, in which suspension and notification would be the norm. This was a critical matter brought to our attention by law enforcement officials. We had to immediately remove the server.”
“That seems odd,” notes Techdirt, a website that covers government policy, technology and legal issues. “If there was problematic content from some users, why not just take down that content or suspend those users. Taking down all 73,000 blogs seems… excessive.”
The DMCA’s takedown actions are a direct violation of the First Amendment under prior restraint. However, explains law professor Wendy Seltzer, because “DMCA takedowns are privately administered through ISPs… they have not received… constitutional scrutiny, despite their high risk of error.” Seltzer adds that “because DMCA takedown costs less to copyright claimants than a federal complaint and exposes claimants to few risks, it invites more frequent abuse or error than standard copyright law.”
TorrentFreak worries that the Blogetery.com case has set a precedent. “Fears remain… that this action is only the beginning, and that more sites will be targeted as the months roll on. Indeed, TorrentFreak has already received information that other sites, so far unnamed in the media, are being monitored by the authorities on copyright grounds,” writes a blogger on the site."

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