Our financial system is crumbling this week.

[Hungary Jack]

FWIW, I looked at our 2010 return and discovered that my effective federal tax rate was 16.5% on an AGI of about $250k. That is a bit lower than I expected. The main drivers were mortgage interest deductions (recent refi means more interest) and the $10k in property taxes. The state bite was 3% (now 4.5%).

The small "nonprofit" business Mrs. Jack and I generated about $38k in sales taxes and $14k in employment taxes (excluding federal and state withholding on income). We have 2 full-time employees, one making about $35k with bonus, another $25k with bonus. I was paying health insurance, but had to stop when our sales dropped about 25% due to the wonderful economy.

So between our labors and enterprise endeavors we generated over $100,000 for federal, state, and local coffers. It's fair, but I certainly don't feel like we collectively consumed $100,000 in public services.

HJ, you aren't in the demographic most of us are looking at to raise taxes on...but you are in the demographic that gets stuck with most of the bills due to the larger earners above you.

EDIT: especially when figuring in cost of living.

I figure we are in the top 2 or 3% of earners, but most of Obama's proposals would not impact us in most years. Being self-employed, my income varies quite a bit.

There was a table in the WSJ yesterday that showed average effective tax rate by income level. It was IRS data, and showed that people earning above $500k were paying effective federal rates of 22-25% IIRC.

This and other data strongly suggest to me that the issue isn't broad levels of taxation, but the many tax loopholes and distortions that Congress has built into the system over decades of social policy experimentation. Wealthy people have the means to exploit the tax code, and I don't really blame them for doing so. Heck, I want to keep more of my money too.

And this is where I really start to think Obama is a fool. He has done a lot of dumb things, but near the top is his harping on the rich and invoking higher personal taxes in the name of equity. It is OK to think it, but a President at this time and age should not publicly say it. He is just fanning the flames and entrenching the positiorns on both sides.

If Obama needs more money for his agenda, why not focus on the tax code? There seems to broad support for this. Some rich people will pay more, but he could not be accused of raising income taxes on the rich. In these polarized times, it seems to be one thing that enough people could agree upon that might have real benefit in the long term.

I did not vote for Obama, but I was hopeful he could bring change. I have pretty much concluded that our silver-tongued leader really doesn't have much of a political clue. Whatever worked for him as a community organizer is useless in Congress. We need new leadership in 2012.

[Fat_Bulldog]

HJ,
Do you think there is a viable candidate for change in 2012.

Or is our current structure so faulted, it doesn't matter who takes office?

[wart57]

HJ,
Do you think there is a viable candidate for change in 2012.

Or is our current structure so faulted, it doesn't matter who takes office?

Our current structure is so [expletive] it won't matter who wins. All our "leaders" care about is getting re-elected.

[Hungary Jack]

HJ,
Do you think there is a viable candidate for change in 2012.

Or is our current structure so faulted, it doesn't matter who takes office?

I don't hold out much hope for any of the current candidates. An ideal candidate, IMO, might be a governor from a diverse state who has had to deal with a variety of interests from big business to labor to public employees and environmentalists and entrepreneurs, and who has had to face fiscal constraints, make really tough choices, and managed to piss everybody just a little bit but not so much they withdraw. This person also has some business experience, served in military, lived abroad, and doesn't go to church very often. And he loves Chipotle and craft beer.

[TimeForGuinness]

HJ,
Do you think there is a viable candidate for change in 2012.

Or is our current structure so faulted, it doesn't matter who takes office?

I don't hold out much hope for any of the current candidates. An ideal candidate, IMO, might be a governor from a diverse state who has had to deal with a variety of interests from big business to labor to public employees and environmentalists and entrepreneurs, and who has had to face fiscal constraints, make really tough choices, and managed to piss everybody just a little bit but not so much they withdraw. This person also has some business experience, served in military, lived abroad, and doesn't go to church very often. And he loves Chipotle and craft beer.

Geez, who is this guy and when do I get to vote for him?

[Hungary Jack]

Chris Christie looks like he loves Chipotle and craft beer.

He is an intriguing guy for me, but talk of a Presidential run is absurd. He has only been governor a few years, and really has not been through an economic cycle that would reveal his policy approach and ability to govern in good times and bad.

But his reformist credentials are impressive as a New Jersey County Freeholder and later as US attorney, where his district provided ample opportunity to convict public officials of corruption. But he is not without controversy and apparent conflicts of interest in the latter role.

[planet planet]

Loved this Alec Baldwin tweet:

The American economy is now like musical chairs. Each decade, the music stops, we take away some more chairs.

[vinsanity]

He has only been governor a few years, and really has not been through an economic cycle that would reveal his policy approach and ability to govern in good times and bad.

Someone should point this out to Sarah Palin.

Markets up 2% on good news. Like falls in jobless claims and economic growth.

Day late and a dollar short?

[IMADreamer]

Guys the root of all the problems in our political system is our media. The media wants sensationalism and that's what they give us. This creates extremism like the tea party. This creates extreme media like Fox News and MSNBC who just have to tell the extreme side of each story. The truth is actually somewhere in the middle, America is actually somewhere in the middle but only the extremist get a voice. In a country with a reputable media there is no way in hell someone like Sara Palin would still get air time, but here she is the hot ticket.

I think all this says alot about America. One we are clearly stupid, two we are completely bought by large companies, and three we are completely screwed until the middle rises up and takes things back. Either by voting with their wallets against big companies, voting against extreme candidates, quit watching and listening to extreme news, or with guns and real revolution.

Since middle America is so socked in with debt, losing their job, unemployment, just trying to survive they can't be bother with political activism and trying to change.

[docellis]

3 out of the 4 largest financial institutions are bigger today than before the financial crisis began.