Tue Nov 14, 2006 20:50

-------- Original Message --------
Date: Tue, 14 Nov 2006 23:24:28 +0000

Read all their plans by clicking on the URL, but the two that will really scare
you are copied below.


Tax your pension funds

This idea first received serious consideration in the early Clintonista years.
As soon as the Republicans took control of the Congress the idea disappeared.
Right now it's being "secretly" incubated by Democrats to be hatched when they
regain control. The idea is simple. There are trillions of dollars out there in
various private pension and 401K plans. All of these trillions of dollars are
earning interest for (gasp!) private investors and individuals and not for the
government! To make matters worse €“ most of these private pension and 401K
plans are owned by the evil, hated upper income earners.

The "secret" plan? A one-time 15% tax on the outstanding balance of all private
pension and 401K retirement plans. This money would be paid into the general
fund of the federal government and used to fund various social programs for low
and middle-income earners.

Is this a dangerous plan for Democrats? Not really. The plan would take money
chiefly from those who earn enough money to actually pay income taxes and
contribute to pension plans. These people do not make up the core of Democratic

Tax your pension contributions also

After the Democrats levy their 15% tax on the outstanding balance of all pension
and 401K plans, they intend to follow up with a tax on all future contributions
to these plans. The theory is that "rich" people shouldn't be allowed to
contribute that money to these plans tax free when "poor" people don't have that

The Magic of Imputed Income

Imputed? What does "imputed" mean?

One definition is to "credit." So, by imputed income, we mean that you are
credited with income you didn't necessarily earn.

The goal is clear. Democrats want to milk the high-achievers for as much money
as they possibly can. There are really only two ways Democrats can get more
income tax out of you. One way is to raise the tax rates. At some point this is
going to prove to be politically risky. So, how else can they bleed you for
more? Even Democrats who have been to government schools can do simple math.
They know they can get more money out of you if that line on your income tax
return that reads "taxable income" can be increased. Forty percent of $120,000
is more than 40% of $90,000. All you have to do is impute €“ credit €“ more
income to the poor taxpaying high-achiever.

So --- here is the idea that the Clinton Administration was tossing around prior
to the voter revolution of 1994. They were going to impute €“ credit €“ extra
income to people who own their own homes. This was going to be done for two
reasons. First, to push more people into the higher income brackets where
Clinton tax increases could reach them. Second, to increase the amount of taxes
actually collected from these people. Here's how Clinton's imputed income scheme
was going to work:

Let's say you own a home worth $250,000. Your payments on that home are about
$2,000 a month. The government uses census data (there is a reason they ask all
of those extra questions) to figure out what a $250,000 home in your
neighborhood would rent for. Let's say it would rent for $3000 a month. This
means that you could rent your home for $1000 a month more than your payments.
But you're not renting your home, you're living in it. You must know that this
just isn't fair to people who have to rent homes. They don't get the tax
deductions you get. They don't own their own homes because, unlike you, they
haven't, as Dickie Gephardt likes to phrase it, "won life's lottery."

Well .. since you're so rich and since you own your own home, the Democrats
would really like to get a little more money from you, to spend on those poor
renters and people who aren't as "fortunate" as you are. This would all be in
exchange of their votes, of course.

So ... here is this element of the Democrats' secret plan for you and your bank
account. When you fill out your tax return you will have to consult certain
tables and government data to determine what a home like yours would rent for in
your neighborhood. Using the example above, your home would rent for $3000.
You're paying $2000 a month to your mortgage company. You will be instructed to
take the difference ($1000 a month) and multiply it by 12. This gives you
$12,000. That's your imputed income. Add that to your other earnings to come up
with your taxable income. That adds up to more than $4,500 in additional income
taxes if you're in the top tax bracket. Hey, it's only fair ... you being rich
and all.

Don't gripe. This is all for those needed government programs for the "less

By the way --- you should know that there is an imputed income bill in the
Congress. It's about child support, not home mortgages. If you're a deadbeat dad
who owes back child support you would, under this law, have to add the amount of
your arrearage to your taxable income and pay taxes on it. Fact is, you've
already paid taxes on this income once. The bill would just punish you for not
forking it over to the ex-wife by making you pay tax on it a second time. Today,
child support. Tomorrow, that money you could be making if you would only rent
your home instead of live in it.

Main Page - Sunday, 11/19/06

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