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IRS to Track Online Sellers' Payment Transactions

Starting in 2011, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments.

Reporting is required only if gross amounts for the year exceed $20,000 or there are more than 200 transactions.

Government Workers Feel No Economic Pain

Private-industry employers spent an average of $27.42 per hour worked for total employee compensation in December, while total compensation costs for state and local government workers averaged $39.60 per hour.

The average government wage and salary per hour of $26.11 was 35 percent higher than the average wage and salary of $19.41 per hour in the private sector. But the percentage difference in benefits was much higher. Benefits for state and local workers averaged $13.49 per hour, nearly 70 percent higher than the $8 per hour in benefits paid by private businesses.

The California legislature took a reckless gamble that makes Wall Street's bankers look cautious. At the top of a bull market, they enacted a huge pension boost for public-safety and industrial unions. The bill reconfigured the compensation formula for pension benefits of all public-safety employees who retired on or after January 1, 2000. It let firefighters retire at age 50 and receive 3% of their final year's compensation times the number of years they worked. If a firefighter started working at the age of 20, he could retire at 50 and earn 90% of his final salary, in perpetuity. One San Ramon Valley fire chief's yearly pension amounted to $284,000—more than his $221,000 annual salary.

Sources: WSJ & Washington Times

The Tyranny of the Tax Man

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??????

1. Accounts Receivable Tax
2. Building Permit Tax
3. CDL License Tax
4. Cigarette Tax
5. Dog License Tax
6. Federal Unemployment Tax (FUTA)
7. Fishing License Tax
8. Food License Tax
9. Fuel Permit Tax
10. Gasoline Tax
11. Hunting License Tax
12. Inheritance Tax
13. Interest Expense Inventory tax
14. IRS Interest Charges IRS Penalties (tax on top of tax)
15. Liquor Tax
16. Luxury Taxes
17. Marriage License Tax
18. Medicare Tax
19. Property Tax
20. Real Estate Tax
21. Social Security Tax
22. Road Usage taxes
23. Sales Tax
24. Recreational Vehicle Tax
25. School Tax
26. State Unemployment Tax (SUTA)
27. Telephone Taxes such as federal excise, universal service fee tax, federal, state and local surcharge taxes
28. Utility Taxes
29. Vehicle License Registration Tax
30. Vehicle Sales Tax
31. Watercraft Registration Tax
32. Well Permit Tax
33. Workers Compensation Tax

 

Here Comes The Bike Tax

One idea that seems to be growing in support is a bicycle excise tax that would be charged at the point of sale of new bikes and/or bike parts.

Back in December, the bike movement's biggest champion on Capitol Hill, Rep. Earl Blumenauer told a crowd assembled for the Cities for Cycling launch:

"... he added that "investments from the bicycling community" to help pay for better road quality and more bike infrastructure might be a smart move. "In fairness," Blumenauer said, "we'd be better off if we had a tiny fee" on some cycling equipment, such as a bike tire tax."

A bike tax is already in use in several other countries and cities. Colorado has one. So does the U.K.

If we tax something, we get less of it. In this case, we get less exercise (healthy people) more pollution, more oil imports, and more black markets.

Greedy Government Taxes Groceries

Food_tax

 

 

Local Governments To Bill You For Fire Protection

While most of us think that our property taxes cover such services, a growing number of communities are charging "fire fees". An important note to remember is that fire services generally include not only fire fighting, but EMT as well. In the most outrageous case to date, a New Castle Indiana family that lost their home in a fire were shocked to receive a bill for nearly $28,000!

I'm not a lawyer, but under contract law, the promise to do something one is already contractually obliged to do is not, traditionally, regarded as good consideration. In other words, you have no valid contract and are not obligated to pay.

Research these links for yourself: http://alturl.com/4fnf | http://alturl.com/2zee | http://alturl.com/b2k5

Couch Potato Cash

I have yet to share all of my alternative income streams. I do this so you can realistically see what it takes and understand my philosophy of real diversification. **You can participate in these income streams by clicking them in my sidebar**

1. Utilizing my money seminars!
2. Teaching a few classes during the year.
3. Selling college textbooks on half.com & at Faculty Books.
4. Fiverr allows me to do small tasks (like clciking google ads) and earn $5.
5. Finding freebies and utilizing high-value coupons.
6. Collecting aluminum cans for scrap & the MI deposit.
7. Performing small tasks on Amazon Mechanical Turk.
8. Swagbucks ~ paid to search the Internet.

Hidden IRA Rules Limit Investment Choices

 

Mainstream media continues to state that traditional IRAs are tax deferred until retirement. Well, that depends. If your IRA owns mortgage-leveraged real estate, you owe UBIT.  If your IRA or 401(k) owns an active business structured as a pass through entity (such as an LLC or partnership), you owe UBIT.  UBIT, or Unrelated Business Income Tax, applies to tax exempt organizations including retirement plans. To pay UBIT, Form 990-T must be filed with the IRS.

 

Gold is a very popular investment these days. Is it possibble to own collectibles such as art, coins, and  physical gold inside an IRA? No. When an IRA purchases a collectible, the amount used to make the purchase is treated as distribution to the owner. It is included in the owner's gross income, and if the owner is under age 59½ and does not qualify for one of the exceptions, a 10% early distribution penalty is imposed on top of the income taxes.

Employee Paychecks Will Be Sent To Government, Then Paid Out By Bank Transfer

The state will seize all paychekcs, collect what they deem a fair tax, then send you a pittance to live on.

Nanny government sees the writing on the wall - squatters everywhere, a booming underground economy, neighborhoods using their own currency, the tea party movement, etc. This is not some conspiracy theory. The article ran on CNBC's web site, then was taken down. But I have this version to prove it.

New IRS Rules Stifle Seasonal Tax Preparers

As those who read this blog know, job creation cannot occur unless regulations are rolled back. But the exact opposite is happening.  Here is yet another example:

New regulations for paid preparers will roll out in three phases:

• Phase 1: Apply for or renew your PTIN.
• Phase 2: Pass a proficiency exam
• Phase 3: Complete Continuing Education Credits

Full Details