Texas Creates Jobs part III

PM -

1. BMW 1 series - California

2. Toyota Camry - Mexico

3. Cadillac DHS - Florida

4. Toyota Camry (old) -???

5. Nissan Altima - ????

6. (non-us model) - Mexico

Texas Creates Jobs

November 16, 2010

During a morning commute between US281/North Loop 1604 and downtown Alamo Dome (15 miles drive, in the same direction – across 4 lane of highway), I encountered 5 out of state license plate vehicles. One of the drivers (vehicles) was military personnel. 

1. Chevrolet C1500 Crew Cab – Pennsylvania  
2. Cadillac Seville/DHS? – New York
3. Toyota Tacoma – Utah
4. Pontiac Grand Am – Michigan
5. Toyota Land Cruiser – Maryland

Left office 1/2 hours later than usual, during the commute between downtown and 281/Loop 1604, in the same direction, I encounter 7 out of state license plate vehicles.

1.  Honda Pilot - California
2.  Volkswagen Jetta - New Mexico
3.  BMW 330 - Canadian
4.  Toyota Prius - Colorado
5.  Mazda Mazda 6  - Oklahoma
6.  Chevrolet Trail Blazer - Ohio
7.  Saturn Outlook - Florida



Texas creates jobs, but they are not for the locals??  – Uh? Governor Perry!!

Unemployment Benefit Is Becoming Entitlement

When does unemployment benefit come another form for entitlement?

1. Payout for benefit is more than what was collected in premium.

2. Payout term is extended than it was originally promised.

3. One will not take a job because the pay difference between pay and unemployment benefit check isn't worth "spending 8 hours on the job".

4. Using unemployment check to supplement under-table cash-side jobs.

5. One will not save money aside for raining days, counting only on the unemployment check.

A New Texas Governor

by Joe Gokaho 2010.2.10 D3

I attended a GOP Texas Governor candidate rally at a local restaurant over the weekend. One asked why do I want to support Kay Bailey Hutchison, not Rick Perry? I am simple minded person, and my rational or irrational reasons are as follows:

1. Term limits - I think there is a reason for that. Kay is a good person, so as Perry, both of them have been on the same job too long. It's time for a change for both of them.

2. There are many projects that are driven by interests group, rather than "grass-root" demands. For example: The nice rest areas along Texas highways are great improvements over the olds, I use them often. But why did it cost 12 millions per rest area? I want it nice, but 12 millions a pop?? Gee

3. TxDot - is a mess. Transportation is an issue that affects everyone. Kay wants to get TxDot in order, if she can, it would a very positive effect toward prosperous economy.

# # #

Picture of Commissioner Wolff - interviewed at a Kay Bailey rally

Earned Income Tax Credit Needs to be Re-Tuned

by Joe Gokaho 2010.02.03 D3
This is the link to the "EITC" from the IRS website.
My main reason for opposing our current Earned Income Tax Credit is about the rules. It's all about AGI based.
Government wants us to rely on "government subsidy", not to work hard, because we might "earn too much" and loose EITC.
# # # #
Here are comparisons for "unjust" "unfairness" rules for qualifying EITC
# A A A #
Person A: has 2 qualifying children and makes $57,000 a year.
For Persona A takes standard deduction, the simple returns shows
that Persona A meets the EITC AGI threshold of $40,290 ($57,000 - 3 x exemption $3,700 - standard deduction $5,700 = $40,200)
Then person A get a check for $5,028, that makes
Person A earning = $57,000 and $5,028 tax free for a total $62,028/year
NOTE: EITC of $5,028 is equivalent to a W-2 wage 0f $6,905. //Note: FICA (6.2% & 1.45%) and federal income tax (10% for this tax bracket) or state income tax (CA 9.55%) //
# B B B #
Person B: has 2 qualifying children and he also makes $57,000 a year.
Person B decides take a part time job to supplement his income. The job pays $140 every weekends, That brings him a W-2 wages of $57,000 + $7,280 = $64,200
For Persona B takes standard deduction, the simple returns shows
The persona B has a AGI that EXCEEDS the EITC threshold of $40,290 ($64,200 - 3 x exemption $3,700 - standard deduction $5,700 = $47,400), so Person B doesn't get the $5,028 check.
For Person B, the real take home pay for that $140 weekend job, it only netted him $5,300 in his pocket.
Person B earning = $57,000 + $5,300 (after tax) = $62,300/year;
As is (do nothing) A earning = $57,000 and $5,028 = $62,028/year
# C C C #





Person C is making a bit more money that Person A and Person B, he pulls in $63,000 a year.
Person C figures out by contributing 10% of earning ($63,000) into his 401K plan will reduce his W-2 wages used for calculating AGI. The AGI is only $56,700 and Person C gets the EITC of $5,028
As (play with tax code) Person C earning = $63,000 + $5,138 (free) = $68,138

As (extra job) Person B earning = $57,000 + $5,300 (after tax) = $62,300/year;
As is (do nothing) A earning = $57,000 and $5,028 = $62,028/year

# # Freaking stupid policy # #

1. Why would Person B take on an "extra job" to help out the family, when government is telling you stay home like Person A - he is better off by doing nothing?
2. Why would Person C need more government assistance than Personal A? Person C is creating his personal wealth on tax payers back?

3. Why would someone improving their skill set to get a better paying job (says from $57,000 year to $67,000); then discovering that all that hard work yields same amount of beef ?

# # Tea Party Idea # #
Let EITC to be "age" based, not AGI based, helping out family with kids by giving parents more money into their pockets toward child education or after school activities. We are not penalizing higher wage earner, instead they will create more jobs for the economy in the "eduction sector" by sending their children everywhere as "consumers".
1. EITC is not a "cash back" based. EITC is not indexed AGI tax bracket.
2. Dependents - children under 25, are entitled to "additional deduction" - all filing format - either 1040 (long or short), taking standard deduction or itemized deduction, filing single, married, or head of household.
3. The exemption deduction of $3,700 per person still applies.
4. After AGI calculation, additional $12,000 deduction can be applied for 1 child, $16,000 deduction for 2 children or $20,000 for 3 or more children.
For the middle class, the typical tax bracket is around 15% to 25% bracket range;
The saving (15% -25% tax bracket) of $1,800 to $3,000~ $200 /month for 1 child,
or Saving of (15% -25% tax bracket) of $2,400 to $4,000 ~ $267 / months for 2
or Saving of (15%-25% tax bracket) of $3,000 to $5,000 ~ $333 /months for 3 or more
I call this a supply side (non-government) stimulus plan. It's not just cash in the pocket, but rather it is a fair and meaningful tax cut for educating our kids.

CPS - Build Nuclear Power Plant NOW

Part 1 - I want lower rate !! For the next 40 years

Part 2 - Get real - overly Hyped "Green Technology

Health Care – Where’s Beef

Joe Gokaho 2009.08.31 1D

There is my understanding of our "health care" system.

Part 1, Part 2, Part 3

Myth and F reek-0-nomics

Myth: Make Health Care Affordable

Many people think by pooling small business owners together will be able to make health insurance affordable, rather than trying to buying policy individually. There is some truth to it. The policy premium will be based on the new “collective” accessing health care, rather than just one individual.

Example: If 1 in 5 of the employees received a $80,000 by-pass heart surgery, and no one else used the service, then on average, an individual needs to share $16,000/year per person. Writing a policy for these 5 people can be risky; may be that why the typical premium for individual is not so affordable - unless you're extremely healthy with extremely high deductible policy.

If the same $80,000 can be shared by a group of small businesses, The larger the collective can smooth out (share more) the spike in cost. If there are 20 people in the policy, then writing a policy for these 20 people is less risky, because the average cost shared by everyone on the policy is $4,000/year. A big drop in premium. # # #

The assumption is that the premium will be lower when small business owner get together to buy insurance, but in reality the premium is adjusted every year, base on how the “collective” uses the medical service in the past year.

You may get a favorable rate at year one, then it’s about you and your “risk sharing” policy holders use the service collectively # # #

An auditor told me the story about “unexpected” jump in health care premium on a company facing uncertain future (closure, ran out of money, waiting for a new buyer to take over the company).

As the rumor spread, the employees began to visit doctors more frequently before the anticipated transition (to new owner, or facing closure), getting "taken care off" before losing their jobs and health care insurance.

The anticipated transition didn’t take place; the company limped through another calendar year. The insurance company raised the premium following year by 50%. That’s a policy on a company that has 400 plus employees. The employees had caused the company budget into deeper trouble.

# # #

If you offer a group of people who never had/or had limited health care to join a health care system, knowing they don’t have to paying full direct cost (employee are paying deductibles only), they will use the service to its full extend (freakonomics); Take note small business owners!. The balance of the health care cost (paid by either preminum and insurance) is going to be very high; regardless the number of people had joined the system.

The health care premium is not about number of people; it’s about the how kind of health care we want, and how much we are willing to pay for it.

Trillions and Billions – New “Big” Number on Government Budgets

Billion was a big number when I was growing up, now the trillion is the new big number. It’s hard for me to think that the NEW “Big” number is 1000 times bigger than the OLD “Big” number – in a short 30 years span. Freakonomics?

Hearing government spending a billion here and couple billions there and 500 billion on special programs – I don’t know whether our government spending is out of control.

Here is my way of thinking of number factors

► Inflation rate – $100 in the 1980 worth about $200 today

► Population growth – Spending $1 on every American costs $226 millions in 1980, Spending $1 on every American today, it costs $307 millions (I don’t know whether 307 millions include illegal or not)

▼ Most of the budgets growth is proportion to the size of general population. The budget for school, roads, police grow as number of people depends on the service increases.

▼ Some of them shouldn’t grow, in theory. Budget to run the White House and congress should stays the same, the number senators and representatives don’t change. The military budget and PBS stations should stay about the same – the US territory hasn’t change (although threat to our country may have changed), the number of PBS stations/PBS programs stay about the same.

In 1980 – $100 million program is about $200 million in 2009. If this $100 million was spent on population consumption programs (i.e. policing), then it’s about $280 million programs.

When I hear a 1 trillion dollar program on prescription drug program, I should think it is same as a
$700 billons in 2000 or
$500 billons in 1990 or
$350 billons in 1980.

# # #

There are so many nearly trillion dollar programs today, but I rarely recall any spending programs over $100 billions mark in 1980’s. I would argue that our government has a spending problem. If all conditions are the same as before, we need to cut what ever the budget we have by at least 2/3, by making the budget spending level like we had in the 80’s.

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My Understanding of Health Care Costs (Part 1 of 3)

Basic concept 101

1. If you need medical service, you will have to pay for it (singularly or collectively), it’s not free yet– we are not communists.

2. There is an asking price “for PROVIDING medical service”, and there is a marketing price “for PAYING medical service”.

3. If there is 3^rd party involvement - insurance, government (capitalist, communist, socialist), the exchange of service/goods are strictly just between the “PROVIDER AND RECEIVER”. “buyer and seller”.

4. Government, insurance, HMO, PPO, wealthy (pay out of pocket individuals), bureaucrats, finance, capitalist come to play, and alter the “provider and receivers” relationship. In a real world of free market, medical service providers and patients come to a “price” both sides can agree upon.

Basic concept 201

1. Insurance – is a risk sharing program. The participants put money into the pool of fund, in hope that collectively – if needed, the “collectives” will assist financially to individual receiving benefits. As a whole, the total outgoing “premium, out of pocket expense” shall equal to payments demanded by the service provider.

2. Service provider is a self sustaining entity. The money collected through donation, and fees shall be adequately cover ongoing expense – such as payroll, facility, equipment, medications etc. Regardless whether each individual transaction/medical service equates to actual payments in full or not.

Basic concept 301

1. Insurance policy – is for people going /or are willing to share the total medical expense with others (people you know or don’t know about). If you don’t want to share the financial risks, – you can always pay it out of your own pocket.

2. Everyone wants free medical service – or pay a little as possible and get as much service as he can. People rarely use medical services (young, or healthy), as a group, are paying a lot less than people use medical service often (old or unhealthy, people with medical risks).

3. Young and healthy, people are likely to afford medical expenses “collectively”, where as older, and high risks people, collectively received a lot of medical services are usually exceeds their ability to pay.

4. Every medical service providers want to make a few extra dollars too. They can setup shops, demanding “proof of financial responsibility” before rendering service. In most cases, medical service is not free. But in our society, it hard to deny medical care for others purely because of financial reason – inability to pay.

5. Medical service providers are run like businesses - completing for “good” patients who can afford their services. Getting better equipments, providing newer treatments, paying more to get more qualified staff are resulting higher costs for services rendered.

6. In the other extreme, If new breed of service providers, use second hand equipment and load up its usage, stick to older may be proven but not as successful treatments, higher younger/lower labor costs staff? Will it lower have “broader range” of good patients?

NEXT WEEK - Human Behavior and Medical expense?