Grounds and neutrals connected in junction box.

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cwcw

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I live in an old house and have been updating the wiring. The kitchen circuit is wired oddly. It is wired with 12/2 connected to a double pole breaker. Both the black and the white are connected to the breaker and the ground to the bus. The white wire is wrapped with electrical tape. The 12/2 goes to a junction box in the kitchen with an outlet and two switches. It also feeds another outlet and light. It is hard to see what is happening but all the neutrals and ground wires are connected with a wire nut in the junction box. This seems like some kind of old school wiring. Can anyone tell me what is happening? Are the switches and outlets grounded? Is this safe? Thanks.
 
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