Guest Post: Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt

Tyler Durden's picture

From Simon Black of Sovereign Man

Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt

Folks… you just can’t make this stuff up.

On July 6th, just two days ago, at least a dozen busybody Congressmen sponsored the introduction of HR 2411, the “Reduce America’s Debt Now Act of 2011.”
They always come up with fantastic names for these pieces of
legislation… and rest assured, the better/more patriotic the name, the
more ominous the bill. This one follows the pattern.

HR 2411 states that every worker in America should be able to
voluntarily have a portion of his/her wages automatically withheld and
sent directly to the Treasury Department for the purposes of paying down
the federal debt.

Every employer making payment of wages shall deduct and
withhold upon such wages any amounts so elected, and shall pay such
amounts over to the Secretary of the Treasury…

That’s right. Uncle Sam is so broke that he wants to give all the
good little Americans out there the opportunity to contribute an even
greater portion of their paychecks to finance government largess.

Desperate? Hmmm…. Don’t worry, it gets better.

Obviously, if an employee feels so compelled and should elect to have
a portion of his/her paycheck withheld, the onus of responsibility is
now on the employer to make it happen. The employer has to do all the
paperwork, withhold the money, send the payment to the Treasury,
maintain the account records, and probably submit to all kinds of new
filing requirements.

You can imagine that, if passed, the bill will result in a host of
new IRS regulations, complete with a battery of penalties for employers
who don’t fill out the paperwork properly, submit filings on time, or
make some administrative mistake.

Think about it: if a small business owner has one single employee who
is dumb enough to think that it’s his patriotic duty to pay down the
debt and decides to contribute $1/month, that owner will have the
responsibility for all kinds of new forms and filings, plus submit to
new ‘debt reduction audits.’

But don’t worry, it gets even better.

So let’s say there are millions of sheep out there who elect to
donate a portion of their toil and sweat so that the Chinese and big
financial institutions don’t have to worry about an American default.
How does Congress plan on rewarding its most patriotic citizens? By
sticking it to them on their taxes, of course.

HR 2411 stipulates that any contribution made to the Treasury in order to pay down the federal debt IS NOT TAX DEDUCTIBLE.

“The [Treasury] Secretary shall include. . . a reasonably conspicuous
statement that any amounts deducted and withheld from wages. . .  are
not deductible as charitable contributions for Federal income tax
purposes.”

Imagine this scenario: You make $100,000/year. In a fit of complete
insanity, you decide that you want to withhold your entire annual salary
to pay down the debt. Hey, you can always move in with mom for the next
year, right?

Well guess what– Uncle Sam will gladly take your money… and then
STILL expect you to pay taxes on the $100,000 that you earned, so you’d
have to come out of pocket with an additional $40,000 or so.

Don’t worry, though. The Social Security and Medicare wages are
reduced by the amount that you withhold, making you only liable for
state and federal taxes. Seems like a good deal, eh comrades?

There are so many things utterly wrong with his piece of legislation,
it’s hard to know where to begin other than by saying that such
intellectual and philosophical perversion is only capable of springing
from unprincipled sociopaths whose sole capability is the destruction of
value.

There’s a great quote from Atlas Shrugged that comes to mind which sums this all up:

[W]hen you see that in order to produce, you need to obtain
permission from men who produce nothing; when you see that money is
flowing to those who deal not in goods, but in favors; when you see that
men get rich more easily by graft than by work, and your laws no longer
protect you against them, but protect them against you. . . you may
know that your society is doomed.

We’ve discussed the story of the boiling frog so many times before– a
frog, when put into a pot of water and slowly brought to a boil,
doesn’t realize that he’s in danger until its too late. I think the
boiling frog just got a little hotter. Have you hit your breaking point yet?

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iinthesky's picture

You know.. if they had some balls they would write in there that everything you give IS 100% deductible AND you can elect to shift your income tax to this program instead of having all your taxes go to transfer payments to the Federal Reserve System and its owners. if you have the slightest doubt that this is where your taxes go I would say think about this bill and what it purports to do and what you all have been saying. There already are ways to give more.. Why the need for this bill then? because whatever you give doesnt go directly to Treasury. It goes to the FRBNY. From there to the IMF. Look into it.

onthesquare's picture

Reading between the lines comes out the strong point that of even asking the questions should reveal the desperation that exists.

Either that or these guys are screw balls.

jerry_theking_lawler's picture

is that the silence of the lambs version or the JOE DIRT version....

mkkby's picture

Just reduce the wage of any employee that signs up for that -- call it a service charge.  Make it large enough so they leave.  Done.  No more paper work.

Jack Mayoffer's picture

Legalize and tax Weed Bitches!

SilverIsKing's picture

DOES ANYONE KNOW THE NAMES OF THE CONGRESSMEN WHO SPONSORED THIS JOKE?

macholatte's picture

 

H. R. 2411

To provide for an employee election on Form W-4 to have amounts deducted and withheld from wages to be used to reduce the public debt.

 

IN THE HOUSE OF REPRESENTATIVES

 

July 6, 2011

Mr. CRAWFORD (for himself, Mr. TIBERI, Mr. FINCHER, Mr. LANDRY, Mr. DENHAM, Mr. DOLD, Mr. FLORES, Mr. GRIFFIN of Arkansas, Mr. AUSTIN SCOTT of Georgia, Mr. HUIZENGA of Michigan, Mr. PALAZZO, and Mr. GUINTA) introduced the following bill; which was referred to the Committee on Ways and Means

 

IMHO that group was only smart enough to do as they were told to get elected. So the question I have is this: Who put them up to it?

 

macholatte's picture

 

Congressman Rick Crawford (R-Ark.)

U.S. Congressman Pat Tiberi (R-OH)Congressman Stephen Fincher.

U.S. Representative Stephen Fincher (R-Frog Jump TN)

Congressman Jeff Landry (R, LA-03)

Rep. Jeff Denham, (R-Calif)

U.S. Rep. Robert Dold, (R-Kenilworth Ill)

U.S. Congressman Bill Flores (R-Texas)

Congressman Tim Griffin (R-AR-02)

U.S. Congressman Austin Scott (R-GA-08)

U.S. Rep. Bill Huizenga, (R-MI-02)

Congressman Steven Palazzo (R-MS-04)

Rep. Frank C. Guinta (R-NH)

W T Effington's picture

I apologize that we Texans sent one of these assholes up there.

jerry_theking_lawler's picture

Palazzo 'was' my guy...not after this sham of a bill....what the F*** are they thinking....

gmrpeabody's picture

That's just it. They don't think. Why would it not occur to them that these deductions  be tax deductible? Let's follow up and see if they all signed up for the 3%.

whstlblwr's picture

Yes, I reach boiling point with this ridiculous post. Most Sovereign Man posts seem pointless I notice. Isnt there some other legislation that is true problem, this is nothing. His blog silly and easy to deconstruct if had time.

knowless's picture

i bet alot of people thought that way about the income tax, since, you know, it's voluntary and all.

who in their right mind would pay an income tax? a tax on my labor? i'm going to pay you so i can work.. how does that even make sense?

whstlblwr's picture

This completely different. First clue you can tell it nothing is sponsors, no one important and few.

This Soverign Man person discredit ZH and show ignorance in how politics work.

People get riled up by stupid bill. This is stupid. It go nowhere and distraction. Just go to thomas.loc.gov to see have many million bills, simple and stupid get sponsored. Many, many. some even you can't believe anyone sponsor.

arizona11912's picture

Thats because this Simon guy is a salesmen. He's making dough off of people's fears. While some of the things he says are certainly valid a lot of it is simply oversimplified bs...just saying

Sudden Debt's picture

That "Texan" lives already more then 20 years in Washington. That's not a texan anymore.

 

Zero Govt's picture

"I apologize that we Texans sent one of these assholes up there."

The Bills movers are ALL Republicans ...anyone going to apologise for the sad-fuks of the Rep Party or are they too embarrased to poke their heads out of the sewer? 

-Michelle-'s picture

I'm torn between hoping they were stupid enough to believe they were making all payroll contributions voluntary and... well, nothing.  I'm hoping for stupid.

Rainman's picture

Outstanding idea from the zoomen !! Now I can redistribute my wealth voluntarily and invite my liberal acquaintences to do likewise. I see win/win.

Hook Line and Sphincter's picture

Listing congressmen like this is a flagrant and heartless betrayal to the assistance they are proving their constituency. All voting records should be private, and not under the purview of the ignorant public. Posting such should be an offense, punishable by forcing the perpetrator to dress in a maids outfit, and forcibly inserting a mouth prop into his/her oral cavity. This will allow the elected to insert various objects that will supply their need for quick tension relief from their day to day activities.

knowless's picture

I bought it username. near perfect word choice, a few formatting/spelling changes and you could work for the government.

http://www.youtube.com/watch?v=Z5npVNERoyw

Tom Terrific's picture

Take good note.  Here's just how "small government" your dear Republicans really are.  Before you bitch, I'm independent NOT Democrat.

CompassionateFascist's picture

Actually, all these creeps are from the Rino (Romney, McCain) wing of the Repube Pty. Hopefully the TP'rs will break away after Boner caves on the debt limit. Good riddance GOP. One down, one to go.

logically possible's picture

Note that these are all Repubs on this list. It doesn't matter, Repubs or Dems, they are all pieces of crap.

DosZap's picture

This will definitely help Obama's re-election bid.........

As  for the Texan, all I can say is read his name, and figure who his constituents are.

Akin to Sheila Jackson Lee.

jag's picture

I'm surprised no one has bothered to point out the fact that "compassionate" people like Bill Clointon, Warren Buffet and many other actors and celebrities often state they "don't pay ENOUGH" in taxes.

Many in Massachusetts, years ago, claimed the same thing so some legislators created a bill that allowed such people who wanted to pay more to do so.......the response was as you'd imagine; not even John Kerry bothered to pay state taxes at a higher rate. Not even .1% of taxpayers paid at a the higher rate.

This legislation is identical in intent. It isn't aimed at raising revenue its aimed at exposing liars like Clinton who lament low tax rates but always seem to manage to deduct everything down to their underwear to avoid paying more in taxes than required. Its a gimmick  folks, to expose hypocrites.

DosZap's picture

 not even John Kerry bothered to pay state taxes at a higher rate.

 

Isn't he the tax dodger that paid top dock his yacht in another state, to keep from paying taxes on it?.

Think so.................hypocrites.

Shell Game's picture

From HR 2411:  "Mr. CRAWFORD (for himself, Mr. TIBERI, Mr. FINCHER, Mr. LANDRY, Mr. DENHAM, Mr. DOLD, Mr. FLORES, Mr. GRIFFIN of Arkansas, Mr. AUSTIN SCOTT of Georgia, Mr. HUIZENGA of Michigan, Mr. PALAZZO, and Mr. GUINTA) introduced the following bill"

FastBoat's picture

Mr. CRAWFORD (R-ARK)
Mr. TIBERI (R-OH)
Mr. FINCHER (R-TN)
Mr. LANDRY (R-LA)
Mr. DENHAM (R-CA)
Mr. DOLD (R-IL)
Mr. FLORES (R-TX)
Mr. GRIFFIN (R-ARK)
Mr. AUSTIN SCOTT (R-GA)
Mr. HUIZENGA (R-MI)
Mr. PALAZZO (R-MS)
Mr. GUINTA (R-NH)

See a pattern here?

SilverIsKing's picture

Hmmm...Lemme guess...

Each of them has a penis and no balls?

JW n FL's picture

Taxation without Representation!

onthesquare's picture

have you seen their penis on facebook?

but seriously why don't they ask for something they can use and is worth more. ie food, ammunition, water, fuel, black SUVs, army surplus stuff...

things they use everyday

All donations will be thankfully received and faithfully applied.

knowless's picture

so you guys are fine with debt right? hows'bout a permanent income tax increase veiled as a "voluntary contribution"? how does that sound?

Torsion's picture

So who is this guy, Rick Crawford (R-AR), who is leading the fight against the debt crisis?  Here a few of his career "highlights".  Well actually, it's all of them.

  • Bomb disposal technician, U.S. Army
  • B.A. in Agriculture Business and Economics from Arkansas State
  • During his time as a student at ASU, Rick was also a professional rodeo announcer, an activity he continued after graduation.  He was named Announcer of the Year by the National Federation of Professional Bullriders in 1996, 1997 and 1998
  • news anchor and agri-reporter on KAIT-TV in Jonesboro, Farm Director on KFIN-FM
kito's picture

"bomb disposal technician"....hes doing a great job disarming the big one thats coming...tick....tick.....tick.....tick.....tick....

disabledvet's picture

aww.  i found the video of the speech that was given in order to convince his colleagues to vote yes:

http://www.youtube.com/watch?v=BpSmprqptSk&feature=player_detailpage

Carl Spackler's picture

THAT is the single most important question...who proposed this?

 

 

Jack Mayoffer's picture

Legalize and tax Weed Bitches!

coppertop's picture

Legalize and tax Weed Whackers

toady's picture

Tax my weed?

NEVER!

Give me tax free weed or give me DEATH!