In 1913, the entire federal tax law, plus explanations and other related material, fit into a single 400-page volume. Today, they total 40,500 pages in 22 volumes. And the list below shows you all the taxes that have been added. Yet the government is broke??????
Take me as an example. I have paid in $69,058 as of 1/1/2011. Assume I could request a check for that amount right now and not collect Social Security at retirement.
If I live to 75 (male life expectancy from wiki) and retire at 62. I would receive $828 every month for 156 months from Social Security. That is $129,168.
The government saves $60,110.
Over the next 20 years, 74 million boomers will retire. If my situation is "typical" the government could save $4.45 trillion!
I know it sounds crazy, but negative interest rates are showing up everywhere. That means you pay the bank to hold your deposits.
That is why my previous 3 posts talk about how holding cash on your own is the best thing to do right now. More people are pulling their cash out of the banking system because they lose nothing by doing so. This actually contracts the money supply and crushes the velocity of money. This is why we are in a deflationary death spiral despite central banks printing money.
The central planners won't let this happen. So the plan is to eliminate CASH.
And if you are concerned about holding all that cash (theft, fire, etc.) consider putting some into bitcoin!
Back in the 1950s, corporate taxes accounted for about 30 percent of all federal revenue, but in 2009 corporate taxes accounted for just 6.6 percent.
Cities in Switzerland do a booming business in setting up sham headquarters for foreign corporations. For example: Zug, Switzerland is home to 26,000 people and 30,000 companies.
Transocean, the owner of the rig involved in the BP oil spill, movied their "headquarters" to Zug for tax purposes and saved about 2 billion dollars.
General Electric made a total of 14.2 billion dollars in profits last year paid nothing into the U.S. Treasury,
Even though Boeing receives billions in federal subsidies every year and even though it has a bunch of juicy government contracts it did not pay a single penny in federal corporate income taxes from 2008 to 2010.
We can even get the governemt employees who administer food stamp programs to use extreme couponing as well.
Lawmakers allowed bank consolidation and market power in violation of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. That act specified that no single bank may hold more than 10 percent of total retail deposits. Unfortunately, since 1994 two limitations of Riegle- Neal became clear, (1) the growth of big banks was not fueled by retail deposits but rather by various forms of “wholesale” financing, and (2) the cap was not enforced by lax regulators, so that Bank of America, JP Morgan Chase, and Wells Fargo all received waivers in recent years.
Then Congress had to repeal the Glass-Steagall Act of 1933, so that any financial institution can act as an investment bank, a commercial bank, and/or an insurance company. They hid this as the Financial Services Modernization Act of 1999.
To capitalize on insatiable greed, banks started marketing OTC derivatives (a.k.a. as swaps). For swaps, delivery places and dates, volume, technical specifications, and trading and credit procedures are subject to negotiation by the parties to the contracts. Swaps are traded on a bilateral basis not on a public exchange. The exposure is to default by the counterparty. Credit risk mitigation measures, such as regular mark-to-market and margining, are optional for swaps. Swaps have no regulatory oversight, they are simply goverened by the contractual relations between the parties.
Here is the takeaway: OTC derivatives grew to an estimated size of about $596 trillion before crashing in Sept. 2008. By contrast, the value of the world's financial assets—including all stock, bonds, and bank deposits—was pegged at $167 trillion in 2007.
We have had a decade of unprecedented innovations - from the Web 2.0, to genetic engineering, to hybrid vehicles, to life saving medical devices, yet the stock market has gone nowhere in the last decade.
If you go back to the Reagan era, 30 year bonds have risen nearly 300%! One would expect bond prices to tumble because of accumulated government deficits.
It's all about central banks controlling both interest rates and the money supply - not free markets. It's not about producing things. It's not about corporations providing jobs. It's all about bonds and debt.
Every day millions of people tune into CNBC and discuss stocks on Yahoo finance when it's all just idle chatter leading to bad investment decisions.