How much will you pay for Wall Street bailout?

(Compiler's note: A must read article.)

By Chelsea Schilling

A grassroots online community dedicated to driving home the costs of the government's Wall Street bailout has created a calculator showing exactly how much each and every American family will pay for the spending spree. "Here's the deal," Right.org states. "A bunch of jet-set corporate executives made bad bets for their companies and lost, big time. Normally, these companies would go bankrupt. This time, our government is taking money from our families to prop up these insolvent companies."

Right.org describes itself as "a community of Americans who are intensely concerned about the bailout culture in Washington." One of those Americans, Evan Baehr, told WND the website grew out of conversations on an e-mail list of friends who work in journalism, finance, law and the non-profit sector.

"As the bailouts began in earnest last fall, two things dismayed us: First, how non-transparent they were; and second, how they contravened common sense and what we think as sound economics," he said.

Baehr said the government is forcing taxpayers to invest in assets the private sector won't touch and dodging inquiries into details about acquisition of the assets.

"Something had to be done, and we felt like there wasn't any voice out there gathering the opposition to these bailouts and bringing pressure to bear on Congress and the president," he said. "Americans deserve a better sense of what started the economic crisis, the types and sizes of bailout packages and what some possible ways out might be."

The website offers a calculator so every family may see how much they must pay in taxes to finance the Wall Street bailouts.

"TARP and the bailouts of Bear Stearns and Citigroup are just the tip of the iceberg," the website states. "So far, our government committed more than $8 trillion to funding failed companies (that's over $60,000 per family in America!). ..."

According to the calculator, with a total bailout of nearly $8.5 trillion divided among 300 million Americans, every man, woman and child in the U.S. would have a tax burden of $27,599. (The IRS reports there were only 138 million taxpayers in 2007, putting the load at $61,153.04 per taxpayer.)

The U.S. Census Bureau's 2005-2007 American Community Survey reports the median family income is approximately $60,374, and the average U.S. family is made up of three people. If every person were to pay for the Wall treet bailout, the calculator reveals that a family of three making $60,374 with a current income tax of $12,712 would face an additional tax of $5,333 each year to cover its costs – equal to a 42 percent tax increase.

In a period of 30 years at 5 percent interest, the calculator estimates the average family would pay $160,009 – or the cost of 12 Chevy Aveos

, six college tuitions, 123 iMacs and 40 vacations.

The website also offers an interactive bailout chart illustrating the government's cash commitments.

"What's worse? It's not making a difference," Right.org states. "The line for bailouts is growing, and includes the telecom industry, airlines, as well as city and state governments."

Calculations do not include costs to taxpayers associated with the Obama administration's newly approved $787 billion stimulus plan.

The website is circulating a petition to lawmakers demanding that they do force taxpayers to pay for corporate failures and asking them to sign the following oath:

I pledge to oppose all future bailout requests that would make my constituents pay for business or government failures that are not my constituents' fault. This pledge applies to bailouts in all forms, including loans or other financings, equity infusions or other investments, asset purchases, guarantees, and any other type of bailout transaction.

"This isn't so complicated: bailouts keep bad businesses afloat and prevent capital from flowing to productive areas of the economy," the petition states. "That puts jobs at risk and jeopardizes our competitive edge against foreign countries."

The group accuses President Obama of talking a "tough game about bailouts" but not following through on his promises.

"[H]is own stimulus package and his bank bailout proposal hand billions more of our dollars to failed companies," it says. "Urge the government to do what's right: Stop the bailouts!"

On Monday, Right.org will launch a video contest with a grand prize of $27,599 – the estimated tax burden for one American. Each contestant must submit a 30-second film explaining why they oppose the bailout.

"Spreading the word about the true size and impact of bailouts is the major push for us now," Baehr said. "Opposing bailouts isn't partisan. It's everyone's issue because it's everyone's dollar."