I repeat:

“It should be the goal of every smart person to move as much of their income as possible off of wages and onto rents, dividents, interest and capital gains. Stop feeding the parasites who call themselves, “The Government”.”

Why?

The FICA taxes are money down a rat hole, supporting the welfare Ponzi scheme of Social Security. That 15.3% is enough to build a comfortable retirement for anyone, and build a fortune for anyone earning over $120,000 a year.

The quickest road to building an investment nest egg is to not live or work in states with punitive income tax rates, like New York and South Carolina. That is why South Carolina has lost over 100,000 engineering and science jobs – the state tries to double tax engineers, construction workers and others who work out of state.

Obama and the Democrats want to double tax overseas America workers the way Jimmy Carter did, which cost us America its dominance of heavy construction.

And contrary evidently to what the IRS actually does. Again, no one actually ever pays the highest marginal rate (which is still 35% but which will be raised again to 38%).

“It should be the goal of every smart person to move as much of their income as possible off of wages and onto rents, dividents, interest and capital gains. Stop feeding the parasites who call themselves, “The Government”.”

Why? As you yourself stated, a significant portion of individuals don’t even pay the federal income tax, and in fact because of the EITC and other refundable credits, most of their burden from FICA is wiped out as well. You can’t have it both ways; either one group is a bunch of teat sucking pariahs who are living the highlife, or everyone is getting their whole pay check wiped out by the federal government. The truth is neither.

All the numbers under GW Bush are better – employment, savings, net wealth, the stock market, job creation.

This economy came apart in 2007 when Democrats got control of both houses of Congress, and their looting the Treasury continues.

The stock market sell off began when Obama sewed up the nomination, and was threatening to seize our 401-k and IRA plans. Individuals withdrew trillions in cash as quickly as they could.

Wait until Obama makes good on his promise to confiscate your 401-k and IRA, and redistribute you ill-gotten gains to new retirement accounts for his ghetto dwellers.

Get ready for Carter inflation rates, too, eating up your paycheck at 21% a year or more.

Then, with the Democrats jacking a 30% tax on your electric bill, you will begin to get a taste of how “the rich” live under socialism.

http://www.spiegel.de/international/world/0,1518,617224,00.html

http://www.guardian.co.uk/world/2009/apr/02/g20-economy

I don’t know what you mean when you say “flatten”.

But the facts are these: we had the longest post-war expansion of the economy under Clinton. We gained more than 22 million jobs. Unemployment and Inflation dropped to their lowest levels since the early 60s. Home ownership hit a record high. You don’t have to be a Kool-Aid swilling Obamaphile to believe that: I’m sure not one. But those are facts.

Of course, Clinton didn’t operate in a vacuum. So you could always argue that the boom economy of the 90s was entirely caused by welfare reform, the Internet, or increasing international trade. You could argue that the economy did well solely due to the actions of Newt Gingrich’s Republican Congress. You could even argue it was only thanks to the coordinated actions of the Holy Illuminated Order of International Libertarian Investment Bankers that the United States of America was spared from certain doom via spontaneous Communistic Combustion.

You can argue whatever you like, but you can’t eradicate the facts.

And the fact is that the economy of the 90s was better than that of the 2000s.

Under the vice-president of the guy you claim caused a supposed economic bonanza. More to the point taxes weren’t “raised”; there was an effective 33% tax rate that hit certain people in the donut hole between the phase out of exemptions and the flat 28%. What Bush I did was switch this around so that there wasn’t this donut hole by shifting the 33% onto the higher income earners and than shifting the 28% down to the one’s who were formerly in the donut hole. Can you read? He SWITCHED THEM AROUND. He did not “raise them”; he merely reassigned them. Clinton raised them at the higher end, Bush lowered them, and Obama has kept them effectively the same for the majority of American tax payers.

“2. The top brackets are still about 39% to 42%, depending on sources of income.”

No they’re not. The highest marginal tax rate is 35%, and no one actually ever pays that, once you minus out exemptions, deductions, and the fact that those in that tax bracket often make a good chunk of their income that are covered under capital gains which is significantly lower you could find this out by cracking open the guide to Your Federal Income Taxes for Individuals.

“We know marginal rates right now are too high, because a very small reduction produces a lot of economic growth, and a very slight increase reduces growth to zero or negative.”

Oh yes, because all the Bush tax cuts gave a huge bonanza in income that we’re all seeing everyday. If you honestly think that this line of argument is going to work with things as they are around us, then you obviously have a higher self-confidence than intelligence.

The fact is that if these investors had to pay the 40% of the middle class, who also pay 15.3% on almost all their incomes, the economy would have no money for growth.

That is one purpose of high taxes on wages – to keep wage earners from accumulating enough capital to stop being employees and start their own businesses – and it works.

It should be the goal of every smart person to move as much of their income as possible off of wages and onto rents, dividents, interest and capital gains. Stop feeding the parasites who call themselves, “The Government”.

Then there was the downturn and Dot.com crash in 1998.

In 2000, the economy went into a recession on the heels of another tax increase. Bush cured that with a slight tax cut for everyone.

The tax rates were higher than 50% when Reagan took over a flat economy with from Carter, with 19% inflation, and we had a recession as severe as this one in 1982 after the tax increases to save Social Security when it went bankrupt in 1981. Then Reagan’s tax cuts went through, took effect, and the boom began.