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Think the deficit, debt, and interest on that debt don't affect you? 44% of your income taxes this fiscal year have been consumed by just interest on the debt.
No roads. No schools. No hospitals. No military.
Just. Interest.
And it's going up... pic.twitter.com/BbhIvzAipt

— E.J. Antoni, Ph.D. (@RealEJAntoni) February 12, 2024

via FRED

Do you feel as if your tax dollar are being allocated efficiently? I think it is impossible for anyone with a modicum of common sense, no matter what side of the aisle they fall on, to look at the data and say that their tax dollars are being properly and efficiently spent. When 44% of your hard earned money is being shoveled toward servicing a runaway national debt problem and the other 56% is being wasted on haphazard spending across the military-industrial complex, the education-industrial complex, the pharmaceutical-industrial complex and the agricultural-industrial complex, among a slew of other wasteful and downright harmful endeavors like renewable energy credits, it is time to call a spade a spade. The government is wasting hundreds of billions of dollars that would have been allocated more efficiently and resulted in a significant increase in productivity and quality of life if they weren't forcibly taken from the bank accounts of the American people.

To make matters worse, the national debt continues to rise at an alarming rate, which means that this percentage is set to rise. Especially when you consider the fact that the United States economy is currently weathering a tsunami of layoffs despite the attempts by the Biden administration to paint the economy as stronger than ever.

US companies are discussing cost cutting, mass layoffs and "operational efficiency" on earnings calls at a record rate: Morgan Stanley

That explains the record low unemployment rate

— zerohedge (@zerohedge) February 13, 2024

[

Consumer Credit Hits The Wall

Earlier today the Federal Reserve Bank of New York released a report on the state of consumer credit. Dissecting data across student, auto, mortgage credit card, and other similar types of loans that US consumers have taken out and painting a bleak picture of the state of the average American.

TFTC – Truth for the CommonerMarty Bent

](https://tftc.io/consumer-credit-delinquency-rates/)

At what point do tax paying American citizens begin to push back against this overt theft and money laundering into unproductive endeavors by the government? You spend your life developing knowledge, skills, a network, maybe a business, and work your hardest to make a good life for yourself only to see one third of your income siphoned off into a black hole of corruption and incompetence that is actively making you, and society at large, worse off. The Founding Fathers took on the British Empire because of a 2% tax on their tea.

It seems that the American taxpayer has more in common with a masochist who likes getting abused by a dominatrix than he does with the people who founded this country. "Thank you sir, may I have another!" He screams as a third of his earnings are taken and thrown at an endless pit of debt that will never be paid back and a gender studies curriculum in Pakistan. Despicable.

The government is robbing Peter to pay Paul, who himself works for the government and has already taken the money that was previously stolen from Peter and given Solyndra a $535 million loan guarantee only to watch the company quickly fall into bankruptcy.

Do you honestly believe the government is getting a return on the large amounts of capital you fork over to them every time you get paid? Do you think that if taxpayers were instead allowed to keep that money and spend it and invest it as they see fit the country would be in a better place? It's time more people start asking these very simple questions with very straightforward answers.

Final thought...

South Florida is nice this time of year.

Use the code "TFTC" for 15% off

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In a move that is stirring both concern and controversy, California's legislature is considering implementing a wealth tax targeting the state's most affluent residents. According to the proposed legislation, individuals with assets over $50 million would be taxed at an annual rate of 1%, while billionaires would face a 1.5% tax. The tax for billionaires could take effect as early as next year, while millionaires would have a one-year reprieve.

This unconventional tax strategy extends beyond California’s borders, as it includes a provision to tax part-time residents pro rata for the days spent within the state. Moreover, California plans to pursue those who leave the state, seeking to collect taxes on wealth generated during their residency.

The proposed wealth tax also enlists private attorneys to pursue affluent Californians for underreporting assets, with financial incentives in the form of a share of the recovered taxes. This raises the specter of legal battles over asset valuation, including mundane matters like the cost basis of home renovations.

Behind this legislative push lies California's daunting $68 billion budget deficit, further exacerbated by generous social welfare programs, such as the recent introduction of free healthcare for all illegal migrants—a policy that includes coverage for gender reassignment surgeries.

Critics argue that the proposed tax, though seemingly modest as a percentage, would have a significant impact on the wealthy, potentially confiscating nearly a third of their annual returns. With California's existing top income tax rate of 14%, the wealth tax could see the affluent contributing a substantial portion of their earnings to state coffers.

The wealth tax is not yet a certainty; it must still pass legislative hurdles and would likely face legal challenges. However, given California's history of taxing property through property taxes, proponents believe it could withstand scrutiny.

The broader implication of this tax could be a mass exodus of wealthy Californians to more tax-friendly states such as Florida or Texas, potentially eroding California's tax base. Additionally, there is concern that this policy could set a precedent for other progressive states.

California's wealth tax proposal is a critical development that could reshape the state's fiscal landscape and influence tax policy nationwide. As the story unfolds, we will provide updates on this potentially disastrous legislation.