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PROVERBS 22:7 — The borrower becomes the lender’s slave.

What is it about the word “bankrupt” our government doesn’t understand?  Maybe it’s because they use doublespeak and words like “unsustainable.”  At home, many in Congress must have experienced something like, “Dad, I would like a new car. Would you please buy one for me?”  An unwanted but reasoned answer might have been, “I’m sorry son, but we don’t have the money.  And if I have to borrow anymore we’ll go bankrupt.”  Who outside of government  doesn’t understand this? 

Our president asked Congress to provide free health care to millions.   Perhaps this is a noble request.  But a reasoned answer from Congress should have been, “We can’t afford it Mr. President.  If we continue to borrow we’ll be bankrupt since our own Budget Office just told us …” 

“… unless (tax) revenues increase at a similar pace to current spending, it will cause federal debt to grow to unsustainable levels … (the current federal debt level) raises the probability of a fiscal crisis in which investors would lose confidence in the government’s willingness to fully honor its obligations (and such a loss in confidence) could occur abruptly!” 

In plain everyday language — WE’RE GOING BANKRUPT! 

This Congressional Budget Office report was issued just a few months ago.  A few weeks after that (August 10) this same Congress put me and my immediate family into debt by another $7000 with their so-called stimulus package (7 members in my family — $25,000,000,000 for all of us combined).   Worse yet — it was done in full knowledge that we’re going bankrupt.  Even worse if true — it appears for reasons more like political payoff than for benefitting our economy. 

Fortunately I trust my Bible much more than my government.  But now I spend a lot of time trying to figure out — Just whose slave am I going to end up?


Please tell us what you think – Post a Comment.



  1. We’ve been going bankrupt for a long time. The CBO has been warning this for years:

    (Written a full year before the collapse of 2008).

    Clueless shills like Art Laffer went on and on about supply side economics, while claiming ignorance on the obvious asset bubbles that are only now about 20% marked-to-market. Shills like Krugman go on and on about priming the pump.

    The Country Club Republicans and Congress put us on this course, however… And the current administration seems totally content to see it through to the bitter end. And pundits wonder why Congress’ approval rating is ~11%?

    Too many people cooking the books: government, corporations and households. The music is going to stop at some point.

    Okay, I’m pausing before my head explodes.

  2. Read what is actually in store for us as of January 31, 2011 – this is reality!!

    In a little over five months, on January 1, 2011, one of the largest tax hikes in the history of America will take effect.

    They will hit families and small businesses in three great waves.

    On January 1, 2011, here’s what happens… (read it to the end, so you see all three waves)…

    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 highermarginal 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 only, there is no death tax. (It’s a quirk!) 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, a business, a retirement account, could easily pass along a death tax bill to their loved ones. Think of the farmers who don’t make much money, but their land, which they purchased years ago with after-tax dollars, is now worth a lot of money. Their children will have to sell the farm, which may be their livelihood, just to pay the estate tax if they don’t have the cash sitting around to pay the tax. Think about your own family’s assets. Maybe your family owns real estate, or a business that doesn’t make much money, but the building and equipment are worth $1 million. Upon their death, you can inherit the $1 million business tax free, but if they own a home, stock, cash worth $500K on top of the $1 million business, then you will owe the government $275,000 cash! That’s 55% of the value of the assets over $1 million! Do you have that kind of cash sitting around waiting to pay the estate tax?

    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:


    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 not be used to pay for this type of special needs education.

    The HSA (Health Savings Account) 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 IRAsand other tax-advantaged accounts, which remain at 10 percent.

    Third Wave:

    The Alternative Minimum Tax (AMT) 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 currently 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.

    Tax Benefits for Education and Teaching Reduced.

    The deduction for tuition and fees will not be available.

    Tax credits for education will be limited.

    Teachers will no longer be able to deduct classroom expenses.

    Coverdell Education Savings Accounts will be cut.

    Employer-provided educational assistance is curtailed.

    The student loan interest deduction will be disallowed for hundreds of thousands of families.

    Charitable Contributions from IRAs no longer allowed.

    Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.

    This contribution also counts toward an annual “required minimum distribution.” This ability will no longer be there.

    PDF Version

    And worse yet?

    Now, your insurance will be INCOME on your W2’s!

    One of the surprises we’ll find come next year, is what follows – – a little “surprise” that 99% of us had no idea was included in the “new and improved” healthcare legislation . . . those who backed this administration will be astonished!

    Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter if that’s a private concern or governmental body of some sort.

    If you’re retired? So what… your gross will go up by the amount of insurance you get.

    You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That’s what you’ll pay next year.

    For many, it also puts you into a new higher bracket so it’s even worse.

    This is how the government is going to buy insurance for the 15% that don’t have insurance and it’s only part of the tax increases.

    Not believing this??? Here is a research of the summaries…..

    as modified by sec. 10901) Sec.9002 “requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income.”

  3. Thank you Stu for your blogs.
    They are incredibly informative and this one was very sobering.
    As a Christian I am called to be informed and to inform others and most importantly pray and fast for my great country.
    We seem to be going downhill with more and more speed. God wake us up and please intervene.

  4. GOP cut taxes and raised spending. Now the bill is due and the Democrats are in charge and will try to get money from turnips. Only problem is, housing and unemployment are still a long, long way from bottoming out.

    I don’t think your source interpreted the W2 issue correct:

    What I’d love to know is how everyone thinks we pay for these wars.

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