USA Slipping and Sliding Towards Fascism
by Jeff Berwick
The Fascist conception of the State is all embracing; outside of it no human or spiritual values can exist, much less have value. Thus understood, Fascism, is totalitarian, and the Fascist State – a synthesis and a unit inclusive of all values – interprets, develops, and potentates the whole life of a people. – Benito Mussolini, 1932
I never watch the State of the Union in the US. I just can’t stand someone looking into my eyes and lying to me for an hour. But I sometimes like to skim the transcripts after, mostly for entertainment, to see how they spin everything.
But the one thing I’ve noticed is there are never any tangible plans or strategies laid out. It’s pure demagoguery. But, behind the scenes, the US Government is working to transform the country in leaps and bounds… and not for the better.
Buried deep in Barack O’Bomber’s 2013 budget is actually a plan to all but outright nationalize the US Economy.
THE DE FACTO NATIONALIZATION OF THE US ECONOMY
In the budget it proposes to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%… nearly three times today’s 15% rate.
But that’s just what dividend recipients have to pay. Before they even see a penny the corporations have to pay taxes on their profit. Assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.
You read that right. The only way as an investor to take profits out of US corporations next year will be after the US Government takes 64.1% of the profit. Think you can avoid it by keeping your gains via capital gains? The top rate for capital gains will be 39.6% in 2013 also, effectively the same rate as the dividend rate.
In other words, nearly 2/3rds of all productive gains will be expropriated by the state.