This is Sad really..

cashmcall

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Jan 23, 2012
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Today I was looking at the only real measure of unemployment, the U6. The U6 is at 14% but it is probably a few points higher because there are a number of people like my sister who they don't even know about. She has been out of the labor force since 2007 using her own dough.

Here's a nice link to the U-6. Some excellent charts on this page. http://www.macrotrends.net/1377/u6-unemployment-rate

We have less than 30 days to go until Obamacare! I can't wait to see this disaster unfold.

Bankers stealing and charging interest for money they don't even have nor own has to be one of the greatest scams ever conceived. That is closely followed by insurance. Another business that charges gobs of money and really doesn't pay out much. Compelling people through the force of law to buy your product is really a fantastic coup made possible by lobbyists, politicians, and predatory corporations.

So what I thought I'd do today is show you a budget and how three things- taxes, interest, and insurance wipe out over half of that income. In addition, I am going to show you how corporate America keeps us broke and why folks like my sister can't possibly comply with Obamacare.

Please look at this chart and note that approximately 70% of all Americans make 75 grand or less and that fully 1/2 of the United States makes less than 50 grand. (Source, 2012 US Census) Please keep this in mind as you read on.



This is her current situation.

Let's start with a gross 35, 000 dollars a year. She pays 3500 in federal taxes and her state taxes are usually about 1500. Her property tax is 1000 a yr. She will pay sales tax in the neighborhood of 1000 a year. (6%). I am going to include gas taxes in sales tax. She will use 500 gallons of gas a year. So gas tax would be around 250.00. She doesn't pay cigarette or alcohol taxes.

Total taxes= 7000 dollars or 20% of her income.

Her new net income is now 28,000.

Her home cost 105,000. She has a 30 year 5.25 loan. She can't refinance. Total interest to term will be 104, 000.

So her interest per year on my house is 3,470 dollars. Her cheap car loan costs her 500 a year in interest and she refuses to carry balances on any credit card. But she will pay a charge here or there so I'm adding in 30 bucks.

Total Interest= 4000 dollars or 14.25% of my remaining income. New net is 24,000.

Insurance on her car and motorcycle costs 1000.00 a year. Her homeowner's insurance is 400 a year. She has to pay mortgage insurance on her home loan. That costs me 90.00 a mo. x 12= 1080. Obamacare is going to cost her min. of 375.00 a month or 4500 a year. She doesn’t have dental insurance but that would cost her 80.00 a month.

Total Insurance= 8000 dollars a year.

So her total cost for those three things is 19,000 dollars. That leaves her with 16,000 dollars a year or about 1333.00 dollars a month. From that she must pay...

510.00 a mo. For her house, after subtracting interest, taxes, and insurance.
216.00 a mo. for her car after subtracting interest. And these are considered very low..

1333.00-510.00= 823.00...... 823.00- 216.00= 607.00

Here's where things get tragic. She has 607.00 dollars a month left to pay the following:

Fuel and oil= 225.00 a month
Food at 10 bucks a day= 300.00 a month
Cable is 51.00
Cell phone is 70.00
Water averages 30.00 a month
Sewer is 20.00 a month
Electricity averages 40.00..very low
Natural Gas averages 40.00
Internet 35.00
Car and motorcycle registration 10.00 a mo. over the course of a year.
Prescriptions 10.00 a month.

Grand Total Monthly Expenses Other than House and Car

831.00 dollars!

That leaves her minus 224.00 in the hole every month! At 35,000 a year, She would need an additional 2500 dollars a year net or about 5000.00 dollars in gross wages just to break even.

Remember, I added Obamacare into my budget.

The really fantastic thing about her situation is this. She has no revolving debt, no student loans, She financed one of the lowest cost cars on the planet. She lives cheap.

You will also note that there is no money for tires, computers, Christmas, visits to the clinic or co-pays, children, child support, or life insurance. She doesn't have money for dog food or vet bills. She doesn’t have any money for golfing or the gym. Or eating out.

Now she could sell her house and go rent a trailer house and save 125.00 a month. She could disconnect her satellite and save 51 bucks along with her internet server at 35 a month. She is still 20 bucks short.

Bottom line? She can't pay for Obamacare. She doesn't have any money for it. Moving to Ecuador is one of the few things She could do to both comply with the law and afford the things she needs. She is not kidding about this. Leaving the United States might not be an option any more, people in her situation might have to.

So if that's her story- how in the hell are all of these other Americans paying for kids, college tuition, 30k cars, 250k houses, vet bills, birthdays and Christmas? IDFK. That's- I Don't _______ Know.

How are people in her income bracket, 30-50k going to make it? Answer they're not. And that is a huge chunk of all Americans. They're not going to buy Obamacare because the idiots that make the laws in the United States never considered two GINORMOUS problems.

Existing individual debt was already huge and the average American worker was already tapped out when they decided to try this grand experiment. The medical industry needed vast and sweeping reform prior to ever applying a national health care system. Without reforms, they simply took a giant, bloated system and made it far worse.

So the people in her income bracket are screwed. The young healthy kids in that bracket are already tapped out and that's only if they are as frugal as she is.

So you see, it's not just the government that's broke. We're all circling the drain and it's awfully late in the game for government to stick it's boot on our throats and demand more money. I don't think Obamacare is even remotely, economically feasible given this example, the average wage of 70% of Americans, and the two trillion in student loans and revolving debt that existed when they embarked on this idiocy. All this about the time the bankers were wiping away all traces of equity in American homes.

At this point, and knowing that the future does not look any better, I think the most intelligent move for a lot of Americans will be to ex patriate to any number of countries like Belize where healthcare is one tenth of our cost here. The alternative, to stay here and subject yourself to the voracious tax bite of a government that cannot stop spending money that it doesn't have, is like some drawn out slow death.

Unfortunately, She has commitments and responsibilities here like most folks and she doesn't see that changing anytime soon but if it does...maybe a passport will get her over the Canadian border at the very least. Until then I guess she will go look for another job so she can stay out of the IRS prison.

And you thought we abolished slavery...when in fact, all we managed to do was change plantation owners.
 
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