Government "Plan" or Banker's "Scam"? You decide.
Below is a message about the government’s “cash for clunkers” scam. I received this message from a friend of an anonymous friend. As you follow the math, keep in mind the following facts:
It cost the owners of the Federal Reserve approximately $.07 to print a "bill" of any denomination.
When a worker receives $10.00 for his/her labor the owners of the Federal Reserve profit approximately $9.93!
Another +/- $2.00 (20%) Federal Tax is demanded by agents of the IRS on behalf of the owners of the Federal Reserve.
Therefore, with the present use of "bills", for each $10.00 of a working man's labor his debt to the owners of the Federal Reserve is approximately $11.93.
Should laborers acquiesce by chip or plastic card to a totally cashless economy, profits for the owners of the Federal Reserve will increase exponentially - approximately $12.00 for every $10.00 of a man's labor!
Today we are at the threshold of an optimal form of indebted servitude, reminiscent of the feudal system from whence we came wherein none who opposes it will be able to buy or sell.
The message:
Surely this could not be true?
"You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time." . . . Abraham Lincoln
Good Morning all Tax Payers:
The Plan, The Scam, The Man, Don't ya just love it when a plan comes together?
The Scam
Here is what a learned friend had to say about my Democratic Math e-mail. It's even worse apparently than I first thought:
It's way worse than that. Ignore all the gas crap and just look at how the stupid car buyer got taken to the cleaners:
If you traded in a clunker worth $3500, you get $4500 off for an apparent "savings" of $1000.
However, you have to pay taxes on the $4500 come April 15th (something that no auto dealer will tell you). If you are in the 30% tax bracket, you will pay $1350 on that $4500.
So, rather than save $1000, you actually pay an extra $350 to the feds. In addition, you traded in a car that was most likely paid for. Now you have 4 or 5 years of payments on a car that you did not need, that was costing you less to run than the payments that you will now be making.
But wait; it gets even better: you also got ripped off by the dealer. For example, every dealer here in LA was selling the Ford Focus with all the goodies, including A/C, auto transmission, power windows, etc for $12,500 the month before the "cash for clunkers" program started.
When "cash for clunkers" came along, they stopped discounting them and instead sold them at the list price of $15,500. So, you paid $3000 more than you would have the month before... (Honda, Toyota , and Kia played the same list price game that Ford and Chevy did).
So let's do the final tally here:
You traded in a car worth: . . . $3500
You got a discount of: . . . . . . . $4500
. . . . . . . . . . . . . . . . . . . . . . . . . . . --------
so far . . . . . . . . . . . . . . . . . . . . +$1000
But you have to pay: $1350 in taxes on the $4500
. . . . . . . . . . . . . . . . . . . . . . . . . . . --------
Net so far: . . . . . . . . . . . . . . . . . -$350
And you paid: $3000 more than the car was selling for the month before
. . . . . . . . . . . . . . . . . . . . . . . . . . ---------
Net . . . . . . . . . . . . . . . . . . . . . . -$3350
We could also add in the additional taxes (sales tax, state tax, etc.) on the extra $3000 that you paid for the car, along with the 5 years of interest on the car loan, but let's just stop here.
So who actually made out on the deal? The feds collected taxes on the car along with taxes on the $4500 they "gave" you. The car dealers made an extra $3000 or more on every car they sold along with the kickbacks from the manufacturers and the loan companies. The manufacturers got to dump lots of cars they could not give away the month before. And the poor, stupid consumer got saddled with even more debt that they cannot afford.
Obama and his band of merry men convinced Joe consumer that he was getting $4500 in "free" money from the "government" when in fact, Joe was giving away his $3500 car and paying an additional $3350 for the privilege.
Think this was stupid for those who were crazy enough to swallow this wonderful scheme?
Just wait until we get health care with no additional costs over what most of us now pay for health insurance and the best medical care in the world. Think that scheme might be designed by the same people who came up with Cash for Clunkers?
You decide.
It cost the owners of the Federal Reserve approximately $.07 to print a "bill" of any denomination.
When a worker receives $10.00 for his/her labor the owners of the Federal Reserve profit approximately $9.93!
Another +/- $2.00 (20%) Federal Tax is demanded by agents of the IRS on behalf of the owners of the Federal Reserve.
Therefore, with the present use of "bills", for each $10.00 of a working man's labor his debt to the owners of the Federal Reserve is approximately $11.93.
Should laborers acquiesce by chip or plastic card to a totally cashless economy, profits for the owners of the Federal Reserve will increase exponentially - approximately $12.00 for every $10.00 of a man's labor!
Today we are at the threshold of an optimal form of indebted servitude, reminiscent of the feudal system from whence we came wherein none who opposes it will be able to buy or sell.
The message:
Surely this could not be true?
"You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time." . . . Abraham Lincoln
Good Morning all Tax Payers:
The Plan, The Scam, The Man, Don't ya just love it when a plan comes together?
The Scam
Here is what a learned friend had to say about my Democratic Math e-mail. It's even worse apparently than I first thought:
It's way worse than that. Ignore all the gas crap and just look at how the stupid car buyer got taken to the cleaners:
If you traded in a clunker worth $3500, you get $4500 off for an apparent "savings" of $1000.
However, you have to pay taxes on the $4500 come April 15th (something that no auto dealer will tell you). If you are in the 30% tax bracket, you will pay $1350 on that $4500.
So, rather than save $1000, you actually pay an extra $350 to the feds. In addition, you traded in a car that was most likely paid for. Now you have 4 or 5 years of payments on a car that you did not need, that was costing you less to run than the payments that you will now be making.
But wait; it gets even better: you also got ripped off by the dealer. For example, every dealer here in LA was selling the Ford Focus with all the goodies, including A/C, auto transmission, power windows, etc for $12,500 the month before the "cash for clunkers" program started.
When "cash for clunkers" came along, they stopped discounting them and instead sold them at the list price of $15,500. So, you paid $3000 more than you would have the month before... (Honda, Toyota , and Kia played the same list price game that Ford and Chevy did).
So let's do the final tally here:
You traded in a car worth: . . . $3500
You got a discount of: . . . . . . . $4500
. . . . . . . . . . . . . . . . . . . . . . . . . . . --------
so far . . . . . . . . . . . . . . . . . . . . +$1000
But you have to pay: $1350 in taxes on the $4500
. . . . . . . . . . . . . . . . . . . . . . . . . . . --------
Net so far: . . . . . . . . . . . . . . . . . -$350
And you paid: $3000 more than the car was selling for the month before
. . . . . . . . . . . . . . . . . . . . . . . . . . ---------
Net . . . . . . . . . . . . . . . . . . . . . . -$3350
We could also add in the additional taxes (sales tax, state tax, etc.) on the extra $3000 that you paid for the car, along with the 5 years of interest on the car loan, but let's just stop here.
So who actually made out on the deal? The feds collected taxes on the car along with taxes on the $4500 they "gave" you. The car dealers made an extra $3000 or more on every car they sold along with the kickbacks from the manufacturers and the loan companies. The manufacturers got to dump lots of cars they could not give away the month before. And the poor, stupid consumer got saddled with even more debt that they cannot afford.
Obama and his band of merry men convinced Joe consumer that he was getting $4500 in "free" money from the "government" when in fact, Joe was giving away his $3500 car and paying an additional $3350 for the privilege.
Think this was stupid for those who were crazy enough to swallow this wonderful scheme?
Just wait until we get health care with no additional costs over what most of us now pay for health insurance and the best medical care in the world. Think that scheme might be designed by the same people who came up with Cash for Clunkers?
You decide.
posted by Niki at 11:51 AM
