how to budget personal finances

Did the author actually say that "borrowing now exceeds tax revenue"? How embarrassing!



I hate to be the one that tells you, Megan, but every nation DESIGNED their currency operations to work that way, when they went off of the gold std back in the 1920s & 1930s. The last vestige, pegging to the $US & thereby to gold, disappeared in 1973. That's been a long time. In 2010 there is simply no excuse for not knowing how simple monetary operations work. It's not rocket science.



In nearly every country in the world, currency creation & currency supply is now fairly directly linked only to public initiative and the general well being of the populous. If population or economic activity increases, OF COURSE currency supply must increase faster than taxes. What part of economic growth don't people understand? Currency operations are not so different from motherhood. You feed the fetus & baby first, often for years, keep accurate growth records, and your family, tribe or nation benefits only in the long run. There's no inherent value in the record keeping itself. Keep that in mind & everything else falls into place.



CURRENCY ISSUERS manage real goods budgets, and issue currency only for internal bookkeeping, to denominate real transactions. (& issuers tax ONLY to control inflation and/or to serve narrow political interests; usually to keep the poor poor & make the rich richer)



CURRENCY USERS typically use currency budgets as an accurate, short term proxy for a local real goods budget. But even currency users should never be confused enough to try to save "fiat" instead of building capabilities or at least hoarding more real assets.



Beardsley Ruml pointed out the obvious, in 1946, "Taxes for Revenue Are Obsolete" http://tinyurl.com/y3dkda3



If anyone has trouble understanding how monetary operations actually work, try these intro texts.



http://www.monetary.org/briefusmonetaryhistory.htm

http://www.cfeps.org/pubs/pn-pdf/PolicyNote2006-1.pdf

http://moslereconomics.com/2009/12/10/7-deadly-innocent-frauds/

http://bilbo.economicoutlook.net/blog/?p=2943

http://www.moslereconomics.com/2009/11/04/short-rate-thoughts-deflation-radical-thesis-turnaround/

http://www.eh.net/book_reviews/handbook-world-exchange-rates-1590-1914

I have exciting news this morning. I am launching a campaign to recall Illinois governor Pat Quinn.

This is not a frivolous effort. It is a serious undertaking and one in which I intend to see to the end. It will take hard work and lots of volunteers but we will be successful.

I need volunteers to ...

• Gather signatures
• Talk to state legislative representatives to get them on board
• Provide legal help
• Design a website
  
• Help with advertising
  

I will pay for website hosting and domain names.

We need to be successful because Governor Quinn has plans that will destroy Illinois.

Massive Tax Hikes Will Drive Businesses Out Of Illinois

The Chicago Tribune reports Governor Quinn has reached a deal with top Democratic lawmakers including Senate President John Cullerton to ....

• Hike the state income tax by 75%, from 3% to 5.25%
• Hike the corporate income tax rate by 75% from 4.8% to 8.4%
  
• Hike the cigarette tax by $1 a pack
• Use the tax hikes to borrow more money to fund pension plans

The Tribune notes "As a measure of how desperate state government's finances are, Cullerton said the state would use the income-tax hike to borrow $12.2 billion. Of that, $8.5 billion would pay overdue bills and $3.7 billion would cover a government worker pension payment lawmakers skipped when putting together the current budget, he said."

Raising corporate and personal income taxes to borrow $12.2 billion is not "desperation", it is fiscal insanity. It will drive businesses out of Illinois and push many struggling taxpayers into bankruptcy.

Quinn is unlikely to get all of those measures passed, but it does not matter. Those are his intentions and they they show his blatant incompetence and disregard for both taxpayers and businesses. Moreover, he will try again.

Enough Is Enough

John Tillman at the Illinois Policy Institute says ...

Amazingly, the deal will also hike the corporate income tax rate. Combined with the personal property replacement tax and the federal corporate tax, Illinois would have one of the HIGHEST corporate income tax rates in the world. You don't have to be a rocket scientist to figure out this means bad news for job growth in Illinois.

With high property taxes, high sales taxes and now high income taxes, the flight to low-tax states will only pick up speed.
Enough is enough.

Indiana Governor Mitch Daniels On Quinn's Plan

The Illinois Policy Institute is not the only one who thinks Governor Quinn's proposal would be horrid for Illinois. So does Indiana Governor Mitch Daniels according to The Northwest Times of Indiana.

"We already had an edge on Illinois in terms of the cost of doing business, and this is going to make it significantly wider," Daniels said.

The Tax Foundation, a nonpartisan tax research group in Washington, noted if the proposed corporate tax hike becomes law, Illinois businesses will pay the highest combined national-local corporate tax rate in the industrialized world.

That is the wrong course for Illinois to take, Daniels said.

"It does show that you can make very different choices, and the contrast between the choice we've made and the one they have is stark," he said. "Obviously I think ours is wiser, but self-governance means people get what they vote for."

Indeed, people get what they vote for, but how did Quinn win?

Governor Quinn Bought The Election

Governor Quinn barely won the election against a very weak opponent in spite of an amazing 85% vote turnout for Quinn in Chicago. Sadly, Mayor Daley did nothing to stop this, although the mayor is complaining mightily now about the Governor's proposals.

“It’s worth remembering that Governor Quinn only found one program—out of thousands—to veto outright when he signed this year’s spending bill in July. Had he taken a closer look at structural spending reforms and not agreed to politically motivated “no layoff and closure” deals with public employee unions, we could be on the path back to recovery instead of being stuck in ever-mounting debt,” noted John Tillman at the Illinois Policy Institute.

Those "no layoff" agreements bought Quinn votes. So did other union-pandering deals. It did not matter that Illinois could not afford those deals. Quinn did what he could to get elected, taxpayers be damned.

There still is no serious discussion from Quinn as to how to rein in exorbitant taxpayer giveaways to public unions. His only "solution" is to raise taxes.

Four Big States - Four Big Problems

California, Illinois, and New York all have massive fiscal problems. They all have other things in common.

• Collective Bargaining
  
• Prevailing Wage Laws
• Illinois, California, and New York are NOT "Right to Work" states

In essence, Public unions own Illinois, California, and New York.

New Jersey Governor Chris Christie is starting to turn things around. Wisconsin and Ohio also have newly elected governors willing to take on public unions.

In Illinois, Governor Quinn remains beholden to public unions, not taxpayers, in spite of massive voter rejections nationally of tax-and-spend policies.

Organized labor contributed mightily to his campaign, and Governor Quinn wants to pay them back. His proposals will do that by taking money out of your pocket so that the public unions get wages and benefits that most taxpayers will never see.

Quinn bought the election, even if barely.

Constitutional Amendment To Recall Governors

Last November, Illinois voters were presented a chance to vote on a constitutional amendment allowing governors to be recalled. I am pleased to report the Illinois Governor Recall Amendment Passes With Two-Thirds Of Vote.

The Illinois constitution was changed last night, with an amendment swept in by a wide margin.

Over two million voters approved a process for the public to recall governors during their term, giving the measure well over the 60 percent of voters required for its passage. The amendment is widely viewed as a reaction to the corruption charges against former Governor Rod Blagojevich.

What Does A Recall Effort Take?

• A voter has to file an affidavit stating his or her intent to circulate petitions to recall the governor. The affidavit cannot be filed until after the governor has served six months in office.
• Permission from lawmakers: The affidavit has to include the signatures of 20 members of the Illinois House and 10 members of the Illinois Senate. Half of the signatures from lawmakers have to be from Democrats and half from Republicans.
• Petitioners have to gather signatures equal to 15 percent of the number of people who voted in the last gubernatorial election.
• Of those signatures, organizers would have to get at least 100 signatures in each of at least 25 different counties. Petitioners would have 150 days to get them and the State Board of Elections would have 100 days to certify them.
• When would the recall election be held? No later than 100 days after the State Board of Elections certifies the signatures.
• Passage: A majority of voters have to vote to recall the governor in order for him or her to be removed.
• Who becomes governor: If the governor is recalled, the lieutenant governor becomes acting governor until a special election is held. If there is no lieutenant governor, the attorney general becomes acting governor. If there is no attorney general, the secretary of state becomes acting governor.
• Special election: A special election to select a new governor has to be held within 60 days if the governor is recalled. That process starts on the day of the recall election if multiple candidates from the same political party file for the office. If that’s the case, a special primary election would be held on the same day of the recall election. Candidates must gather 5,000 signatures in order to run in the special election. The new governor will serve for the unexpired portion of the recalled governor’s term.
• The Better Government has noted that nothing in the amendment prevents the recalled governor from running in the special election after he or she is recalled. It also noted that the amendment does not require grounds for recall.

The above bullet points are from the State Journal Register.

Note that the amendment does not require grounds for a recall, but we have them: Blatant fiscal incompetence and vote buying.

The state House of Representatives consists of 118 representatives elected from individual legislative districts for a two-year term with no limits. The Illinois Senate is consists of 59 senators with staggered two- or four-year terms.

Thus, getting approval from 20 members of the Illinois House and 10 members of the Illinois Senate (half from Democrats and half from Republicans) is not a prohibitive task.

Governor Quinn Supports Recalls

It is a fitting sense of irony that Governor Quinn Trumpets Recalls.

"I think the ultimate way to get ethics in Illinois is have the power of recall in our constitution," Quinn said.

I could not possibly agree more with Governor Quinn. It is perhaps the only major political stance he has taken that I can endorse 100%.

Will You Stand Up To The Injustice?

We have to wait six months to file, but there is no sense in waiting. There are many tasks to be performed and I will need volunteers from every county to gather signatures. I estimate we need about 520,000 signatures. My goal is to get 700,000.

If you can volunteer, time, web design, advertising, legal help, or any kind of general assistance, I would appreciate it. We need to put a stop to Quinn's proposals that will drive businesses and jobs out of the state and massively raise your taxes as part of the bargain.

Please email Recall Governor Pat Quinn Today (RecallQuinnToday@gmail.com) and lend your support to the effort to save the state of Illinois from Quinn's fiscal recklessness. Please let me know what you can do to help.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Source:http://removeripoffreports.net/

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